Residential Real Estate Transactions - Test 05

The 200 multiple-choice questions, all derived from official course material, cover the full spectrum of topics essential for ensuring the successful completion of real estate transactions in Ontario. These topics include legal and regulatory frameworks, relevant documentation, property management, and ethical considerations, among many others. While passing this test with flying colors is indeed an accomplishment, the real value comes from the thorough preparation it demands. Aspiring real estate agents must commit to investing the necessary time and effort into studying the course materials in-depth and accessing additional resources to sharpen their knowledge and skills. Nonetheless, the payoff can be significant, not only in terms of receiving accreditation but also in gaining the competence and confidence required to excel in the Ontario real estate market.

Residential Real Estate Transactions - Practice Test 05

Ontario Residential Real Estate Transactions - Course 2

1 / 30

Which of these must be considered when setting a reasonable listing price for a property?

The seller's personal circumstances

The prevailing market conditions

All of these

The seller's motivation to have their property sold

2 / 30

Personal information about a seller can be included in the advertisement for their property…?

If the seller has not specifically objected to it

If it will help to sell the property

Under no circumstances

If it does not identify the seller by name

3 / 30

Overpricing a property for sale may result in…?

Final sale price being considerably lower than market value

People believing there may be a problem with the property

A salesperson's reputation being negatively affected

All of these things

4 / 30

When taking photographs for a listing, a salesperson should…?

Remove all furniture from every room

Remove any of the seller's personal photographs

Only take photographs of the interior of the property

Only take photographs of the exterior of the property

5 / 30

A salesperson may leave an open house event when it is in progress…?

Only to obtain food or other refreshments

If asked to do so by a potential buyer

Only to attend another open house event

Under no circumstances

6 / 30

The placement of open house signs must be…?

Agreed by the buyer

Chosen by the salesperson

Agreed by the seller

In line with local municipality regulations

7 / 30

If during an open house a buyer who is the client of another brokerage wishes to make an offer, the salesperson must…?

Decline the offer

Invite the buyer to become a client of their own brokerage

Direct them to speak to their own broker/salesperson

Accept the offer directly

8 / 30

In advertising, only members of CREO may use the trademark…?

All of these

REALTORS

REALTOR

REALTOR logo

9 / 30

The source documents for the legal description on the data sheet are…?

Zoning description

Lot size and living area

Tax and assessment documents

Title/deed and survey

10 / 30

The "income approach" to valuation is most appropriate when used on…?

Single detached properties

Commercial or investment property

Condominium property

Waterfront properties

11 / 30

A Comparative Market Analysis shows a seller how their property ranks in comparison with similar properties that are on sale, have sold, or were listed but expired in the previous…?

18 months

12 months

6 months

24 months

12 / 30

Which of these is not one of REBBA's four minimum standards for advertising?

The advertisement must identify the registrant who places the advertisement

The advertisement must include the personal telephone number of the registrant

The advertisement must contain the name of the salesperson/broker

The advertisement must contain the name of the brokerage

13 / 30

The "cost approach" to estimating value may not work well with…?

Very new properties

Commercial properties

Very old properties

Special-purpose buildings

14 / 30

Detailed information about a property being listed is contained on its…?

Listing agreement

Legal description

Measurement document

Datasheet

15 / 30

Distributing flyers advertising that a property has been sold...?

Is a forbidden practice

Is a standard practice requiring no consent

Can only be done with the buyer's consent

Can only be done with the seller's consent

16 / 30

The "direct comparison approach" to valuation works best when…?

A wide range of historical data is available

Recent comparable sales are available

The seller is not in a hurry to dispose of their property

The prevailing market conditions are a buyer's market

17 / 30

When calculating time adjustment for comparable valuation, the value is nil if the comparable property being used for valuation was sold within the previous…?

Month

Six months

Year

Three months

18 / 30

Farming in the neighbourhood refers to…?

Targeting marketing at a particular area

Looking for agricultural properties in a particular area

Persuading people to leave a particular area

Trying to get clients away from nearby brokerages

19 / 30

A valuation should focus on the value of a property when used in a way that…?

Produces the greatest return at the time of valuation

Would it be possible if financial circumstances changed

Would be possible if zoning regulations are changed

Produces the greatest enjoyment of the property available at the time of valuation

20 / 30

The "cost approach" to estimating value cannot be used to value…?

Condominium units

Industrial buildings

Commercial properties

Single residential houses

21 / 30

A la carte remuneration means that the seller is offered…?

Various services at a flat fee

Services at a percentage of the sale price

Services at a combination of percentage of sale price and flat fee

Services at a sliding scale depending how quickly the property sells

22 / 30

Which of these is it not permitted for an unregistered assistant to do at an open house?

Greet visitors to the property

Answer questions about the property

Ask visitors to sign the guest register

Place and remove open house signs

23 / 30

A registrant may not describe themselves in a property advertisement as…?

Any of these

Sales associate

Sales consultant

Sales agent

24 / 30

Which of these properties will often provide the best value for a buyer?

The smallest property on a street

The most dilapidated property on a street

A property that is the average size for a street

The largest property on a street

25 / 30

Home staging professionals are used to do what?

All of these

Cover up obvious defects in a home

Make a home look more attractive

Design media listings for a home

26 / 30

The process of selecting one value estimate from two or more estimates is known as…?

Reconsideration

Re-commiseration

Recommendation

Reconciliation

27 / 30

In a "mere posting" agreement, a brokerage only…?

Organises open houses

Books showings for properties

Negotiates offers

Lists a property as being for sale

28 / 30

If a seller wants all offers presented at a specific date and time, the salesperson/broker should…?

Politely explain the instruction is impossible

Verbally agree to the instruction

Get this instruction in writing

Ignore the instruction

29 / 30

An advertising statement that is not complete enough for someone to understand its truth is known as…?

A false statement

An inaccurate statement

An incomplete statement

An exaggerated statement

30 / 30

A brokerage website must clearly exhibit…?

All of these

Salesperson's name

Disclaimers

Contact information

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