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

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

Do all of these things

Pay lower rent than other tenants

Be able to prevent other tenants selling similar products to them

Reduce parking space for customers of smaller tenants

2 / 30

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

Condominium fees for the sign

Property taxes on the sign

All of these

Maintenance of the sign

3 / 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

The buyer

Any corporation involved

All of them

4 / 30

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

Insurance details

Corporation financial statements

Reserve fund audit

A suggested unit price

5 / 30

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

The matter must go to court

The agreement is terminated

The original agreement remains valid

The amendments are imposed anyway

6 / 30

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

Must agree to bear the cost of cleanup

Must share the cost of cleanup with the seller

Must still progress with the agreement

May terminate the agreement

7 / 30

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

26 feet

16 feet

46 feet

36 feet

8 / 30

The concept of privity means what?

Commercial landlords have no control over subletting

Commercial tenants may not sublet their lease without consent

Commercial tenants may sublet their lease without consent

Commercial landlords may end a lease at will

9 / 30

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

Maintenance

Property tax

Major repairs

Insurance

10 / 30

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

The tenant only pays utility costs

The tenant only pays operating costs

The tenant only pays operating and utility costs

The landlord pays all costs

11 / 30

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

Emergency assessment

Extra assessment

Additional assessment

Special assessment

12 / 30

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

The buyer

The seller's broker

The seller

The salesperson

13 / 30

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

The seller

The buyer

The salesperson

Both lawyers

14 / 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 landlord leases the land and the tenant owns the building

The tenant owns the land and the landlord leases the building

15 / 30

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

The landlord and tenants together

Only some tenants

All tenants

The landlord

16 / 30

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

Third-party professionals

A trusted friend

Themselves

The salesperson

17 / 30

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

Extension of the closing date

Financial compensation from seller to buyer

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

Any/all of these

18 / 30

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

Gross lease

Net lease

Retail ground lease

Percentage lease

19 / 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…?

Must be compensated by the builder

Must complete the transaction

Has the option to withdraw from the transaction

Cannot complete the transaction without a new agreement

20 / 30

A lease cannot be enforced unless it contains…?

An expiry date

Both commencement and expiry dates

A commencement date

None of these

21 / 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

$35,000

$55,000

$45,000

22 / 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

Standard lease

Common lease

Baseline lease

23 / 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…?

With a small financial penalty

Without penalty

With a financial penalty to the seller

Only if they surrender their deposit

24 / 30

Which of these applies to a percentage lease?

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

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

25 / 30

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

400

600

500

300

26 / 30

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

Maintenance costs

Major repairs costs

Insurance costs

All of them

27 / 30

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

Figures

Written numbers

Any of these

Both written numbers and figures

28 / 30

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

A fall in property values

Increased property taxes

Any/all of these

Increased condominium charges

29 / 30

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

The buyer

The seller and buyer equally

The seller's insurance

The salesperson

30 / 30

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

Third-party electrical experts

The buyer's inspection

Energy company

The seller's business manager

Your score is