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

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

Will provide the greatest tax return to the government

Will produce the greatest financial/amenity return

Will offer the greatest benefit to the neighbourhood community

Will offer the most eco-friendly use of the land

2 / 30

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

Make sure that all property taxes are paid

Cover the salesperson against legal action

Ensure that the seller gets maximum value

Place the buyer in full possession of all facts

3 / 30

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

30%

10%

40%

20%

4 / 30

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

Any/all of them

Power cables

Natural gas lines

Storm sewerage

5 / 30

Soil testing of industrial land is undertaken by…?

Third-party experts

The buyer

The seller

The salesperson

6 / 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

Insist that remedial measures must be taken

Refuse to market the property

Warn them that it will adversely affect value

7 / 30

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

Specialised warehousing building

Basic warehousing building

Specialised manufacturing building

Oil refinery

8 / 30

Accessory buildings on industrial lots are primarily used for what?

Raw material storage

Generating plant

Staff restrooms

Vehicle storage

9 / 30

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

Delimiter

Transformer

Battery

Converter

10 / 30

Capital expense quotes for buyers should be…?

Obtained from third-party professionals

Any of these

Prepared by the salesperson

Prepared by the seller

11 / 30

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

10%

30%

40%

20%

12 / 30

A grade level loading dock permits access for…?

Motorcycles

Saloon cars

Forklift trucks

Pickup trucks

13 / 30

A hydrogeological report may be required if…?

Changes to the water supply are needed

Water pressure is too low

The property has no water supply

The water supply has been cut off for some time

14 / 30

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

Show them all suitable properties without regard to potential remuneration

Only show them properties that offer good remuneration

Show them the properties offering the largest remuneration first

Refuse to show them properties that offer lower remuneration

15 / 30

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

The buyer

The seller

A professional measurement company

The seller's brokerage

16 / 30

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

Have to demolish the building and rebuild

Will be heavily fined

Can apply for a continuation of nonconforming use

Must end the nonconforming use immediately

17 / 30

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

Building requirements

Business requirements

All of these

Site requirements

18 / 30

Brownfields sites often attract…?

Any/all of these

Accelerated planning/approval processes

Municipal tax relief

Municipal financial assistance

19 / 30

The effective age of a building is…?

Based on the care and maintenance the building has received

Based on the number of years since planning permission was requested

Based on the number of years since it was built

Based on the number of years it has been in operation

20 / 30

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

Single use industrial purposes

Expensive substantial manufacturing units

Warehousing facilities for businesses elsewhere

Small low rent units

21 / 30

Brownfields sites are generally ones which…?

Were previously in a natural state

Previously had residential buildings on them

Previously had industrial buildings on them

Were previously used for agriculture

22 / 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

Zoning variance

Major variance

Change of use permission

23 / 30

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

Structural weight

Live loads

Stored goods

Vehicles

24 / 30

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

In a dangerous state

In violation of municipal/provincial regulations

Unfit for habitation

Any/all of these

25 / 30

Surveys should be prepared by…?

A building expert

The buyer

The salesperson

An Ontario Land Surveyor

26 / 30

Bay depth in a property is what?

The distance between columns

The width of the loading dock

The distance between floor and ceiling

The distance between walls

27 / 30

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

Potential returns

Current cost of borrowing

Any/all of these

Management expenses

28 / 30

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

The existing tenants

Potential tenants

Customer surveys

The property owner

29 / 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

30 / 30

Checking employee records should be done as part of…?

Financial and operational due diligence

Environmental due diligence

Legal due diligence

Structural of due diligence

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