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

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

All of them

The buyer

The seller

Any corporation involved

2 / 30

A lease cannot be enforced unless it contains…?

Both commencement and expiry dates

None of these

A commencement date

An expiry date

3 / 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 salesperson

The buyer

The seller and buyer equally

4 / 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 complete the transaction

Must be compensated by the builder

Has the option to withdraw from the transaction

Cannot complete the transaction without a new agreement

5 / 30

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

The landlord

The landlord and tenants together

Only some tenants

All tenants

6 / 30

The concept of privity means what?

Commercial landlords may end a lease at will

Commercial tenants may not sublet their lease without consent

Commercial landlords have no control over subletting

Commercial tenants may sublet their lease without consent

7 / 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

Maintenance of the sign

All of these

Property taxes on the sign

8 / 30

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

Major repairs costs

Maintenance costs

Insurance costs

All of them

9 / 30

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

Must agree to bear the cost of cleanup

Must still progress with the agreement

May terminate the agreement

Must share the cost of cleanup with the seller

10 / 30

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

Increased property taxes

Any/all of these

A fall in property values

Increased condominium charges

11 / 30

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

26 feet

46 feet

36 feet

16 feet

12 / 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…?

Without penalty

Only if they surrender their deposit

With a financial penalty to the seller

With a small financial penalty

13 / 30

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

The matter must go to court

The amendments are imposed anyway

The agreement is terminated

The original agreement remains valid

14 / 30

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

The buyer

The seller

Both lawyers

The salesperson

15 / 30

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

Baseline lease

Average lease

Standard lease

Common lease

16 / 30

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

The seller's business manager

Energy company

Third-party electrical experts

The buyer's inspection

17 / 30

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

Any of these

Figures

Written numbers

Both written numbers and figures

18 / 30

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

Maintenance

Major repairs

Insurance

Property tax

19 / 30

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

600

300

500

400

20 / 30

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

The salesperson

The buyer

The seller

The seller's broker

21 / 30

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

The tenant only pays operating and utility costs

The landlord pays all costs

The tenant only pays operating costs

The tenant only pays utility costs

22 / 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…?

$35,000

$45,000

$55,000

$25,000

23 / 30

Which of these applies to a percentage lease?

A tenant pays a percentage of sales to the landlord

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

The landlord pays a percentage of rental profits to the tenant

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

24 / 30

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

Be able to prevent other tenants selling similar products to them

Pay lower rent than other tenants

Reduce parking space for customers of smaller tenants

Do all of these things

25 / 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

Special assessment

Additional assessment

26 / 30

On a retail ground lease, which of these applies?

The landlord leases the land and the building

The tenant owns the land and the landlord leases the building

The tenant owns the land and the building

The landlord leases the land and the tenant owns the building

27 / 30

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

Retail ground lease

Percentage lease

Gross lease

Net lease

28 / 30

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

Extension of the closing date

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

Any/all of these

Financial compensation from seller to buyer

29 / 30

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

A trusted friend

The salesperson

Themselves

Third-party professionals

30 / 30

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

Corporation financial statements

Insurance details

Reserve fund audit

A suggested unit price

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