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

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

Organises open houses

Books showings for properties

Negotiates offers

Lists a property as being for sale

2 / 30

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

Zoning description

Tax and assessment documents

Lot size and living area

Title/deed and survey

3 / 30

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

A false statement

An incomplete statement

An exaggerated statement

An inaccurate statement

4 / 30

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

The advertisement must contain the name of the brokerage

The advertisement must contain the name of the salesperson/broker

The advertisement must identify the registrant who places the advertisement

The advertisement must include the personal telephone number of the registrant

5 / 30

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

Would it be possible if financial circumstances changed

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

Would be possible if zoning regulations are changed

Produces the greatest return at the time of valuation

6 / 30

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

Waterfront properties

Single detached properties

Commercial or investment property

Condominium property

7 / 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…?

Year

Three months

Month

Six months

8 / 30

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

Invite the buyer to become a client of their own brokerage

Decline the offer

Accept the offer directly

Direct them to speak to their own broker/salesperson

9 / 30

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

Measurement document

Legal description

Listing agreement

Datasheet

10 / 30

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

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

The prevailing market conditions are a buyer's market

A wide range of historical data is available

Recent comparable sales are available

11 / 30

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

Politely explain the instruction is impossible

Get this instruction in writing

Ignore the instruction

Verbally agree to the instruction

12 / 30

A brokerage website must clearly exhibit…?

Salesperson's name

Disclaimers

Contact information

All of these

13 / 30

Home staging professionals are used to do what?

Cover up obvious defects in a home

Design media listings for a home

Make a home look more attractive

All of these

14 / 30

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

Only to attend another open house event

If asked to do so by a potential buyer

Under no circumstances

Only to obtain food or other refreshments

15 / 30

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

If it does not identify the seller by name

Under no circumstances

If it will help to sell the property

If the seller has not specifically objected to it

16 / 30

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

The most dilapidated property on a street

The smallest property on a street

A property that is the average size for a street

The largest property on a street

17 / 30

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

All of these

REALTOR logo

REALTORS

REALTOR

18 / 30

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

The seller's motivation to have their property sold

The prevailing market conditions

All of these

The seller's personal circumstances

19 / 30

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

Very new properties

Very old properties

Special-purpose buildings

Commercial properties

20 / 30

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

Services at a sliding scale depending how quickly the property sells

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

Services at a percentage of the sale price

Various services at a flat fee

21 / 30

The placement of open house signs must be…?

Agreed by the buyer

Agreed by the seller

In line with local municipality regulations

Chosen by the salesperson

22 / 30

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

Single residential houses

Industrial buildings

Commercial properties

Condominium units

23 / 30

Farming in the neighbourhood refers to…?

Looking for agricultural properties in a particular area

Targeting marketing at a particular area

Persuading people to leave a particular area

Trying to get clients away from nearby brokerages

24 / 30

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

Sales agent

Any of these

Sales consultant

Sales associate

25 / 30

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

Only take photographs of the interior of the property

Remove all furniture from every room

Only take photographs of the exterior of the property

Remove any of the seller's personal photographs

26 / 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

27 / 30

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

Reconsideration

Re-commiseration

Recommendation

Reconciliation

28 / 30

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

Place and remove open house signs

Ask visitors to sign the guest register

Greet visitors to the property

Answer questions about the property

29 / 30

Overpricing a property for sale may result in…?

All of these things

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

30 / 30

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

Can only be done with the seller's consent

Can only be done with the buyer's consent

Is a forbidden practice

Is a standard practice requiring no consent

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