Commercial Real Estate Transactions

Commercial Real Estate Transactions - Test 02

Taking the Ontario Commercial Real Estate Transactions Test is an essential step for anyone looking to become a licensed real estate agent in Ontario. The test comprises 200 multiple-choice questions and answers, which are sourced from the official Ontario real estate course book. It mirrors the actual test and exam, making it an ideal practice tool for those seeking to pass on the first attempt. The test covers a broad range of topics including commercial real estate transactions, leasing, property management, and investment analysis. It is designed to assess the candidate’s knowledge and skills in relation to Ontario’s real estate market and legal requirements.

Commercial Real Estate Transactions - Practice Test 02

Ontario Commercial Real Estate Transactions - Course 4

1 / 30

Mixed-use buildings are taxable for…?

Both residential and commercial purposes

Neither commercial purposes nor residential purposes

Residential purposes but not commercial purposes

Commercial purposes but not residential purposes

2 / 30

Mortgage brokers may charge what percentage of a loan amount as a service charge?

2%-4%

4%-10%

1%-2%

0%-1%

3 / 30

By law, institutional lenders are restricted (unless insurance is present) to lending a maximum of what percentage of the appraised value or sale price of a property?

60%

90%

70%

80%

4 / 30

The leverage ratio is a financial measurement used to calculate…?

How much capital comes as debt

The risk and capitalisation rate

The safety margin

The loan to value ratio

5 / 30

The typical office condominium offers office sizes up to around…?

2000 ft.²

1000 ft.²

1500 ft.²

500 ft.²

6 / 30

A building with a total floor area of 120,000 feet would require how many parking spaces?

600

1200

120

7 / 30

Lenders typically require a debt service coverage ratio of at least?

0.8

1.2

8 / 30

Capital Gains Tax is charged at what rate?

30%

60%

50%

40%

9 / 30

What does a wraparound mortgage do?

Guarantees mortgage payments

Adds additional funds on top of existing mortgages

Combines all existing mortgages

Pays off existing mortgages

10 / 30

A super regional shopping centre has more than how much leasable area?

800,000 ft.²

400,000 ft.²

600,000 ft.²

1,000,000 ft.²

11 / 30

If a building has "sick building syndrome" it may cause the occupants…?

Respiratory problems

Stress

Any/all of these

Headaches

12 / 30

A neighbourhood shopping centre will have up to how much leasable area?

225,000 ft.²

125,000 ft.²

25,000 ft.²

325,000 ft.²

13 / 30

A Class C office building is usually more than…?

30 years old

5 years old

10 years old

20 years old

14 / 30

The building is defined as a "small office building" if it has less than what amount of floor space?

4460 ft.²

5460 ft.²

6460 ft.²

7460 ft.²

15 / 30

Phase 1 of an environmental site assessment involves what?

Laboratory analysis for possible contamination

All of these

Visual checks for possible contamination

Contamination removal and treatment

16 / 30

The maximum area of a lot on which it is permissible to build a building is known as…?

Ground coverage

Zone coverage

Site coverage

Lot coverage

17 / 30

Which of these tasks would you not expect to be undertaken by a buyer's lawyer?

Check there are no claims on the property

Arrange title insurance

Calculate tax liability

Exchange keys

18 / 30

Which of these types of construction requires additional fire resistant materials to prevent failure in a fire?

Concrete

Masonry

Steel

Insulated concrete

19 / 30

A conditional loan approval letter is known as a letter of…?

Commitment

Intent

Credit

Guarantee

20 / 30

Non-resident sellers must pay their Capital Gains Tax within what time of closing a real estate sale?

30 days

10 days

20 days

5 days

21 / 30

The depreciation of office furniture and equipment which can be offset against tax is typically calculated as how much per year?

40%

20%

10%

60%

22 / 30

The Ontario Fire Code requires continuous and unobstructed entry and exit from a building to…?

A public way

A lake or similar water source

Another building

An open space

23 / 30

Capital Gains Tax is charged on…?

The money spent renovating capital property

The profit realised from selling capital property

The rental gained from capital property

The overall value of a capital property

24 / 30

The LEED design standards offer benchmarks for what aspect of a building?

Eco-friendliness

Fire safety

Economy

Aesthetic features

25 / 30

A development loan is given for what purpose?

Producing plans to build a property

Building the external frame of the property

Preparing land for building construction

Building properties in deprived areas

26 / 30

Which of these does not enjoy an exemption from HST?

A school

A hospital

A building used by a charity

A solar powered factory

27 / 30

Industrial properties are dominated by what type of construction?

Glass

Brick

Steel

Wood

28 / 30

Which of these would not be given an exception from height restrictions?

Penthouse apartment

Air-conditioning equipment

Satellite dish

Flagpole

29 / 30

What are zoning setbacks?

Problems achieving zoning permission

Maximum distances from boundaries and highways

Areas where zoning prohibits development

Minimum distances from boundaries and highways

30 / 30

Appraisers may charge extra fees for what?

Producing paper reports

Providing more than one copy of a report

Sending reports electronically

Dealing with lawyers

Your score is