Commercial Real Estate Transactions

Commercial Real Estate Transactions - Test 04

Taking the Ontario Commercial Real Estate Transactions Test is an essential step towards becoming a licensed real estate professional in Ontario. This rigorous test comprises 200 multiple-choice questions and is designed to evaluate prospective real estate agent’s knowledge of commercial property transactions. However, candidates need not worry, as our free Ontario Commercial Real Estate practice test offers an excellent opportunity to hone their skills and prepare for the exam. All questions featured in the practice test have been taken from the official Ontario real estate course book, ensuring that candidates gain a comprehensive understanding of the field’s fundamental concepts and principles.

Commercial Real Estate Transactions - Practice Test 04

Ontario Commercial Real Estate Transactions - Course 4

1 / 30

Capital expense quotes for buyers should be…?

Prepared by the salesperson

Obtained from third-party professionals

Any of these

Prepared by the seller

2 / 30

The ultimate goal of due diligence by a salesperson is to…?

Place the buyer in full possession of all facts

Cover the salesperson against legal action

Ensure that the seller gets maximum value

Make sure that all property taxes are paid

3 / 30

Checking employee records should be done as part of…?

Structural of due diligence

Financial and operational due diligence

Legal due diligence

Environmental due diligence

4 / 30

Bay depth in a property is what?

The width of the loading dock

The distance between floor and ceiling

The distance between columns

The distance between walls

5 / 30

Failure to disclose known latent defects and material latent defects may leave a property…?

Any/all of these

In a dangerous state

Unfit for habitation

In violation of municipal/provincial regulations

6 / 30

Which of these is an example of a "single purpose" industrial building?

Specialised manufacturing building

Basic warehousing building

Oil refinery

Specialised warehousing building

7 / 30

Which of these could be granted an easement over industrial land?

Power cables

Any/all of them

Storm sewerage

Natural gas lines

8 / 30

If a buyer wants to alter a building to meet their specific needs in a way that does not comply with local zoning bylaws, they must apply for…?

Minor variance

Change of use permission

Major variance

Zoning variance

9 / 30

Office space in industrial buildings is typically limited by zoning laws to a maximum of what percentage of the total area?

30%

20%

10%

40%

10 / 30

The "highest and best use" of a building or vacant land is the one that…?

Will offer the greatest benefit to the neighbourhood community

Will offer the most eco-friendly use of the land

Will produce the greatest financial/amenity return

Will provide the greatest tax return to the government

11 / 30

When a salesperson has received a buyer's criteria, the code of ethics demands that they should…?

Show them the properties offering the largest remuneration first

Only show them properties that offer good remuneration

Refuse to show them properties that offer lower remuneration

Show them all suitable properties without regard to potential remuneration

12 / 30

If a property falls under "nonconforming use" because its usage predates the passage of zoning bylaws, owners…?

Can apply for a continuation of nonconforming use

Must end the nonconforming use immediately

Will be heavily fined

Have to demolish the building and rebuild

13 / 30

Floor load refers to the capacity of a floor to support…?

Structural weight

Stored goods

Live loads

Vehicles

14 / 30

Brownfields sites often attract…?

Any/all of these

Municipal financial assistance

Municipal tax relief

Accelerated planning/approval processes

15 / 30

Soil testing of industrial land is undertaken by…?

The seller

The buyer

Third-party experts

The salesperson

16 / 30

The tenant mix in a retail centre is ultimately determined by…?

The property owner

The existing tenants

Customer surveys

Potential tenants

17 / 30

Accessory buildings on industrial lots are primarily used for what?

Staff restrooms

Vehicle storage

Raw material storage

Generating plant

18 / 30

A grade level loading dock permits access for…?

Saloon cars

Motorcycles

Pickup trucks

Forklift trucks

19 / 30

Whether or not a property is affordable for a specific buyer will depend on the purchase price and…?

Current cost of borrowing

Potential returns

Management expenses

Any/all of these

20 / 30

Older industrial properties may be converted into "incubator" buildings, which are characterised by…?

Expensive substantial manufacturing units

Warehousing facilities for businesses elsewhere

Small low rent units

Single use industrial purposes

21 / 30

Industrial hydro services commonly use what to change the voltage of the electrical supply?

Battery

Converter

Transformer

Delimiter

22 / 30

The Ontario Building Code sets the number of bathrooms required in an industrial building on the basis of…?

Purpose of building

Number of employees

Size of building

Height of building

23 / 30

Measurements of industrial properties for sale should be taken by…?

The buyer

The seller

A professional measurement company

The seller's brokerage

24 / 30

The office area of an industrial building generally takes up what percentage of the total building area?

20%

10%

30%

40%

25 / 30

If a seller does not wish to remedy any detrimental conditions on their property before selling, what should a salesperson do?

Report them to the authorities

Refuse to market the property

Warn them that it will adversely affect value

Insist that remedial measures must be taken

26 / 30

Surveys should be prepared by…?

The salesperson

An Ontario Land Surveyor

A building expert

The buyer

27 / 30

A commercial brokerage asked to look for a property for a buyer must perform detailed analysis of their…?

Building requirements

All of these

Business requirements

Site requirements

28 / 30

Brownfields sites are generally ones which…?

Were previously used for agriculture

Were previously in a natural state

Previously had residential buildings on them

Previously had industrial buildings on them

29 / 30

The effective age of a building is…?

Based on the number of years it has been in operation

Based on the number of years since it was built

Based on the number of years since planning permission was requested

Based on the care and maintenance the building has received

30 / 30

A hydrogeological report may be required if…?

The property has no water supply

Water pressure is too low

The water supply has been cut off for some time

Changes to the water supply are needed

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