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

Figures

Any of these

Both written numbers and figures

2 / 30

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

Increased condominium charges

Any/all of these

A fall in property values

Increased property taxes

3 / 30

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

The buyer

The salesperson

Both lawyers

The seller

4 / 30

The concept of privity means what?

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

Commercial landlords have no control over subletting

5 / 30

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

The seller and buyer equally

The seller's insurance

The buyer

The salesperson

6 / 30

Which of these applies to a percentage lease?

The landlord pays a percentage of rental profits to the tenant

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

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

A tenant pays a percentage of sales to the landlord

7 / 30

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

Any/all of these

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

Financial compensation from seller to buyer

Extension of the closing date

8 / 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

9 / 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

$55,000

$35,000

$45,000

10 / 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

11 / 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

12 / 30

On a retail ground lease, which of these applies?

The landlord leases the land and the tenant owns the building

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

13 / 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

Has the option to withdraw from the transaction

Cannot complete the transaction without a new agreement

Must complete the transaction

14 / 30

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

The landlord

The landlord and tenants together

Only some tenants

All tenants

15 / 30

A lease cannot be enforced unless it contains…?

None of these

An expiry date

A commencement date

Both commencement and expiry dates

16 / 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

Common lease

Standard lease

17 / 30

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

The buyer's inspection

The seller's business manager

Third-party electrical experts

Energy company

18 / 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

Condominium fees for the sign

All of these

19 / 30

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

16 feet

26 feet

36 feet

46 feet

20 / 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

Any corporation involved

The seller

The buyer

21 / 30

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

All of them

Insurance costs

Major repairs costs

Maintenance costs

22 / 30

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

Emergency assessment

Special assessment

Extra assessment

Additional assessment

23 / 30

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

Major repairs

Insurance

Property tax

Maintenance

24 / 30

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

The amendments are imposed anyway

The matter must go to court

The original agreement remains valid

The agreement is terminated

25 / 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

26 / 30

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

400

600

500

300

27 / 30

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

Insurance details

Reserve fund audit

A suggested unit price

Corporation financial statements

28 / 30

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

Third-party professionals

Themselves

A trusted friend

The salesperson

29 / 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

With a small financial penalty

With a financial penalty to the seller

Only if they surrender their deposit

30 / 30

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

Pay lower rent than other tenants

Be able to prevent other tenants selling similar products to them

Do all of these things

Reduce parking space for customers of smaller tenants

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