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

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

Will be heavily fined

Have to demolish the building and rebuild

Must end the nonconforming use immediately

Can apply for a continuation of nonconforming use

2 / 30

Bay depth in a property is what?

The distance between columns

The distance between floor and ceiling

The distance between walls

The width of the loading dock

3 / 30

Brownfields sites are generally ones which…?

Were previously in a natural state

Were previously used for agriculture

Previously had industrial buildings on them

Previously had residential buildings on them

4 / 30

Surveys should be prepared by…?

The salesperson

An Ontario Land Surveyor

A building expert

The buyer

5 / 30

Soil testing of industrial land is undertaken by…?

The seller

Third-party experts

The salesperson

The buyer

6 / 30

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

Converter

Transformer

Battery

Delimiter

7 / 30

A grade level loading dock permits access for…?

Saloon cars

Motorcycles

Forklift trucks

Pickup trucks

8 / 30

Capital expense quotes for buyers should be…?

Prepared by the salesperson

Obtained from third-party professionals

Prepared by the seller

Any of these

9 / 30

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

Specialised manufacturing building

Specialised warehousing building

Oil refinery

Basic warehousing building

10 / 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…?

Zoning variance

Change of use permission

Major variance

Minor variance

11 / 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 care and maintenance the building has received

Based on the number of years since planning permission was requested

12 / 30

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

All of these

Business requirements

Building requirements

Site requirements

13 / 30

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

40%

30%

10%

20%

14 / 30

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

Structural weight

Live loads

Vehicles

Stored goods

15 / 30

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

Potential tenants

The property owner

Customer surveys

The existing tenants

16 / 30

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

Single use industrial purposes

Small low rent units

Expensive substantial manufacturing units

Warehousing facilities for businesses elsewhere

17 / 30

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

20%

40%

10%

30%

18 / 30

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

Will offer the most eco-friendly use of the land

Will produce the greatest financial/amenity return

Will offer the greatest benefit to the neighbourhood community

Will provide the greatest tax return to the government

19 / 30

Brownfields sites often attract…?

Municipal financial assistance

Any/all of these

Municipal tax relief

Accelerated planning/approval processes

20 / 30

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

Cover the salesperson against legal action

Make sure that all property taxes are paid

Place the buyer in full possession of all facts

Ensure that the seller gets maximum value

21 / 30

Checking employee records should be done as part of…?

Environmental due diligence

Financial and operational due diligence

Legal due diligence

Structural of due diligence

22 / 30

A hydrogeological report may be required if…?

Water pressure is too low

The water supply has been cut off for some time

Changes to the water supply are needed

The property has no water supply

23 / 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

24 / 30

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

Power cables

Storm sewerage

Natural gas lines

Any/all of them

25 / 30

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

The seller

The buyer

The seller's brokerage

A professional measurement company

26 / 30

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

Size of building

Purpose of building

Height of building

Number of employees

27 / 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

Refuse to show them properties that offer lower remuneration

Only show them properties that offer good remuneration

Show them all suitable properties without regard to potential remuneration

28 / 30

Accessory buildings on industrial lots are primarily used for what?

Vehicle storage

Staff restrooms

Raw material storage

Generating plant

29 / 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

Any/all of these

Unfit for habitation

30 / 30

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

Warn them that it will adversely affect value

Insist that remedial measures must be taken

Refuse to market the property

Report them to the authorities

Your score is