Commercial Real Estate Transactions

Commercial Real Estate Transactions - Test 06

The test consists of 200 multiple-choice questions, which can be intimidating at first glance. However, all practice questions are taken directly from the official Ontario real estate course book, providing test-takers with a solid understanding of the material. Additionally, passing this test is a crucial step towards becoming a licensed commercial real estate agent in Ontario. This license will allow agents to practice in various areas, including leasing, investment, and property management. The test assesses an individual’s knowledge and understanding of commercial real estate transactions, including legal considerations, ethical standards, and market analysis. By familiarizing themselves with the material and taking practice tests, test-takers can increase their chances of passing the Ontario Commercial Real Estate Transactions Test on the first try, paving the way toward a successful career in commercial real estate.

Commercial Real Estate Transactions - Practice Test 06

Ontario Commercial Real Estate Transactions - Course 4

1 / 30

The purchase price and deposit should be written on the agreement of purchase and sale as…?

Written numbers

Both written numbers and figures

Figures

Any of these

2 / 30

Which of these must a tenant pay a share of if they have a triple net lease?

Major repairs costs

Insurance costs

All of them

Maintenance costs

3 / 30

An "anchor tenant" in a shopping centre may…?

Pay lower rent than other tenants

Reduce parking space for customers of smaller tenants

Be able to prevent other tenants selling similar products to them

Do all of these things

4 / 30

If significant contamination of a site is revealed, the buyer…?

May terminate the agreement

Must agree to bear the cost of cleanup

Must share the cost of cleanup with the seller

Must still progress with the agreement

5 / 30

Issues affecting the closing of a transaction, such as environmental problems or damage, may be addressed by…?

Extension of the closing date and financial compensation from seller to buyer

Any/all of these

Financial compensation from seller to buyer

Extension of the closing date

6 / 30

The basic lease used by a landlord in a commercial complex that applies to most of the tenants is known as the…?

Average lease

Common lease

Baseline lease

Standard lease

7 / 30

If a seller rejects a buyer's proposed amendments to an agreement, what happens?

The amendments are imposed anyway

The agreement is terminated

The matter must go to court

The original agreement remains valid

8 / 30

Either landlords or tenants may take a case at the Superior Court of Justice for dispute resolution if the dispute involves sums in excess of…?

$25,000

$45,000

$35,000

$55,000

9 / 30

The status certificate conditional clause should ensure that if a unit proves unsuitable for the buyer's intended purposes they can terminate the agreement…?

Only if they surrender their deposit

With a small financial penalty

Without penalty

With a financial penalty to the seller

10 / 30

Which of these is not part of the status certificate provided by the condominium corporation?

A suggested unit price

Corporation financial statements

Insurance details

Reserve fund audit

11 / 30

Which of these applies to a percentage lease?

The landlord pays a percentage of rental profits to the tenant

A tenant pays a percentage of sales to the landlord

A tenant can have their rent reduced by the percentage of their losses

The landlord pays a percentage of the tenant's property tax

12 / 30

Any damage to a property caused by the agreed removal of fixtures and fittings must be paid for by…?

The seller's insurance

The buyer

The seller and buyer equally

The salesperson

13 / 30

The concept of privity means what?

Commercial landlords may end a lease at will

Commercial landlords have no control over subletting

Commercial tenants may sublet their lease without consent

Commercial tenants may not sublet their lease without consent

14 / 30

Common area maintenance in a property is a responsibility of…?

Only some tenants

The landlord

The landlord and tenants together

All tenants

15 / 30

A levy charged by the condominium corporation to pay for costs of lawsuits, repairs or unexpected expenses is known as a…?

Extra assessment

Emergency assessment

Additional assessment

Special assessment

16 / 30

On a retail ground lease, which of these applies?

The tenant owns the land and the building

The landlord leases the land and the building

The tenant owns the land and the landlord leases the building

The landlord leases the land and the tenant owns the building

17 / 30

To satisfy FINTRAC regulations, which of these parties must be identified and verified to be on the agreement of purchase and sale?

The seller

All of them

The buyer

Any corporation involved

18 / 30

In a rent free period at the start of a lease, which of these applies?

The tenant only pays utility costs

The landlord pays all costs

The tenant only pays operating and utility costs

The tenant only pays operating costs

19 / 30

The utility load of a buyer's proposed usage should be confirmed by…?

Energy company

The seller's business manager

The buyer's inspection

Third-party electrical experts

20 / 30

Industrial property agreements of purchase and sale must be made on form number…?

400

300

500

600

21 / 30

If a condominium corporation provides an option to purchase an outdoor pylon sign, the buyer will be responsible for…?

Maintenance of the sign

Property taxes on the sign

All of these

Condominium fees for the sign

22 / 30

A lease in which a tenant pays a set rental with the landlord having responsibility for all other expenses is known as a…?

Percentage lease

Retail ground lease

Gross lease

Net lease

23 / 30

If HST does not apply, a certificate this effect must be provided by…?

The seller

The buyer

The salesperson

Both lawyers

24 / 30

A lease cannot be enforced unless it contains…?

An expiry date

Both commencement and expiry dates

None of these

A commencement date

25 / 30

An incomplete property assessment clause should be added to an agreement to protect the buyer against…?

Any/all of these

Increased property taxes

A fall in property values

Increased condominium charges

26 / 30

If municipal property taxes are higher than a builder had estimated due to a final assessment value higher than originally given, a buyer who has signed an agreement…?

Cannot complete the transaction without a new agreement

Has the option to withdraw from the transaction

Must complete the transaction

Must be compensated by the builder

27 / 30

Confirmation that a property's intended use by the buyer is permissible under zoning regulations must be obtained by…?

The salesperson

The seller's broker

The buyer

The seller

28 / 30

A salesperson should always recommend that a buyer has all documentation reviewed by…?

Themselves

A trusted friend

Third-party professionals

The salesperson

29 / 30

Which of these is excluded from a tenant's responsibilities if they have a double net lease?

Insurance

Property tax

Maintenance

Major repairs

30 / 30

Industrial premises can have a floor to ceiling height of up to…?

26 feet

36 feet

16 feet

46 feet

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