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…?

Commercial purposes but not residential purposes

Both residential and commercial purposes

Residential purposes but not commercial purposes

Neither commercial purposes nor residential purposes

2 / 30

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

Masonry

Steel

Insulated concrete

Concrete

3 / 30

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

600,000 ft.²

800,000 ft.²

1,000,000 ft.²

400,000 ft.²

4 / 30

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

How much capital comes as debt

The loan to value ratio

The safety margin

The risk and capitalisation rate

5 / 30

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

Respiratory problems

Headaches

Any/all of these

Stress

6 / 30

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

120

600

1200

7 / 30

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

Satellite dish

Penthouse apartment

Air-conditioning equipment

Flagpole

8 / 30

Phase 1 of an environmental site assessment involves what?

Visual checks for possible contamination

Contamination removal and treatment

Laboratory analysis for possible contamination

All of these

9 / 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%

10 / 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

11 / 30

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

Ground coverage

Zone coverage

Lot coverage

Site coverage

12 / 30

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

4%-10%

1%-2%

2%-4%

0%-1%

13 / 30

What are zoning setbacks?

Maximum distances from boundaries and highways

Minimum distances from boundaries and highways

Problems achieving zoning permission

Areas where zoning prohibits development

14 / 30

A development loan is given for what purpose?

Building the external frame of the property

Building properties in deprived areas

Preparing land for building construction

Producing plans to build a property

15 / 30

Industrial properties are dominated by what type of construction?

Glass

Steel

Brick

Wood

16 / 30

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

A lake or similar water source

A public way

Another building

An open space

17 / 30

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

Commitment

Guarantee

Intent

Credit

18 / 30

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

25,000 ft.²

325,000 ft.²

125,000 ft.²

225,000 ft.²

19 / 30

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

10 days

30 days

5 days

20 days

20 / 30

Appraisers may charge extra fees for what?

Dealing with lawyers

Producing paper reports

Sending reports electronically

Providing more than one copy of a report

21 / 30

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

Economy

Fire safety

Eco-friendliness

Aesthetic features

22 / 30

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

4460 ft.²

7460 ft.²

5460 ft.²

6460 ft.²

23 / 30

A Class C office building is usually more than…?

10 years old

5 years old

30 years old

20 years old

24 / 30

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

500 ft.²

2000 ft.²

1000 ft.²

1500 ft.²

25 / 30

What does a wraparound mortgage do?

Pays off existing mortgages

Combines all existing mortgages

Guarantees mortgage payments

Adds additional funds on top of existing mortgages

26 / 30

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

1.2

0.8

27 / 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?

80%

70%

60%

90%

28 / 30

Which of these does not enjoy an exemption from HST?

A school

A hospital

A solar powered factory

A building used by a charity

29 / 30

Capital Gains Tax is charged at what rate?

50%

60%

40%

30%

30 / 30

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

Calculate tax liability

Check there are no claims on the property

Arrange title insurance

Exchange keys

Your score is