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

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

Verbally agree to the instruction

Ignore the instruction

Get this instruction in writing

Politely explain the instruction is impossible

2 / 30

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

Negotiates offers

Lists a property as being for sale

Organises open houses

Books showings for properties

3 / 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 identify the registrant who places the advertisement

The advertisement must contain the name of the salesperson/broker

The advertisement must include the personal telephone number of the registrant

4 / 30

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

An incomplete statement

An inaccurate statement

An exaggerated statement

A false statement

5 / 30

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

Remove all furniture from every room

Only take photographs of the interior of the property

Only take photographs of the exterior of the property

Remove any of the seller's personal photographs

6 / 30

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

If it does not identify the seller by name

If it will help to sell the property

Under no circumstances

If the seller has not specifically objected to it

7 / 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

8 / 30

A brokerage website must clearly exhibit…?

Contact information

All of these

Disclaimers

Salesperson's name

9 / 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 standard practice requiring no consent

Is a forbidden practice

10 / 30

Farming in the neighbourhood refers to…?

Targeting marketing at a particular area

Trying to get clients away from nearby brokerages

Persuading people to leave a particular area

Looking for agricultural properties in a particular area

11 / 30

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

Special-purpose buildings

Very new properties

Commercial properties

Very old properties

12 / 30

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

Any of these

Sales consultant

Sales associate

Sales agent

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

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

Datasheet

Legal description

Listing agreement

Measurement document

15 / 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

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

Would be possible if zoning regulations are changed

16 / 30

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

The most dilapidated property on a street

A property that is the average size for a street

The largest property on a street

The smallest property on a street

17 / 30

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

Place and remove open house signs

Answer questions about the property

Ask visitors to sign the guest register

Greet visitors to the property

18 / 30

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

Recommendation

Reconsideration

Reconciliation

Re-commiseration

19 / 30

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

Title/deed and survey

Zoning description

Tax and assessment documents

Lot size and living area

20 / 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 sliding scale depending how quickly the property sells

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

21 / 30

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

Commercial or investment property

Waterfront properties

Single detached properties

Condominium property

22 / 30

Overpricing a property for sale may result in…?

A salesperson's reputation being negatively affected

All of these things

People believing there may be a problem with the property

Final sale price being considerably lower than market value

23 / 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

Six months

Month

24 / 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

25 / 30

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

Industrial buildings

Single residential houses

Commercial properties

Condominium units

26 / 30

The placement of open house signs must be…?

Agreed by the buyer

Agreed by the seller

Chosen by the salesperson

In line with local municipality regulations

27 / 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…?

6 months

12 months

18 months

24 months

28 / 30

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

The seller's personal circumstances

All of these

The prevailing market conditions

The seller's motivation to have their property sold

29 / 30

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

The prevailing market conditions are a buyer's market

Recent comparable sales are available

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

A wide range of historical data is available

30 / 30

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

REALTOR logo

REALTOR

All of these

REALTORS

Your score is