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

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

An incomplete statement

An inaccurate statement

A false statement

An exaggerated statement

2 / 30

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

Only to obtain food or other refreshments

Only to attend another open house event

Under no circumstances

If asked to do so by a potential buyer

3 / 30

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

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

Various services at a flat fee

4 / 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

5 / 30

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

The prevailing market conditions are a buyer's market

Recent comparable sales are available

A wide range of historical data is available

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

6 / 30

Overpricing a property for sale may result in…?

Final sale price being considerably lower than market value

All of these things

People believing there may be a problem with the property

A salesperson's reputation being negatively affected

7 / 30

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

Waterfront properties

Single detached properties

Condominium property

Commercial or investment property

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

Accept the offer directly

Decline the offer

Direct them to speak to their own broker/salesperson

9 / 30

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

Re-commiseration

Reconsideration

Reconciliation

Recommendation

10 / 30

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

Measurement document

Datasheet

Legal description

Listing agreement

11 / 30

A brokerage website must clearly exhibit…?

All of these

Disclaimers

Contact information

Salesperson's name

12 / 30

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

The prevailing market conditions

The seller's motivation to have their property sold

All of these

The seller's personal circumstances

13 / 30

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

Ignore the instruction

Get this instruction in writing

Verbally agree to the instruction

Politely explain the instruction is impossible

14 / 30

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

The advertisement must contain the name of the salesperson/broker

The advertisement must include the personal telephone number of the registrant

The advertisement must contain the name of the brokerage

The advertisement must identify the registrant who places the advertisement

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

If the seller has not specifically objected to it

Under no circumstances

If it will help to sell the property

16 / 30

Home staging professionals are used to do what?

Design media listings for a home

Cover up obvious defects in a home

Make a home look more attractive

All of these

17 / 30

Farming in the neighbourhood refers to…?

Persuading people to leave a particular area

Trying to get clients away from nearby brokerages

Targeting marketing at a particular area

Looking for agricultural properties in a particular area

18 / 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 exterior of the property

Only take photographs of the interior of the property

19 / 30

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

Title/deed and survey

Lot size and living area

Zoning description

Tax and assessment documents

20 / 30

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

Ask visitors to sign the guest register

Greet visitors to the property

Place and remove open house signs

Answer questions about the property

21 / 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 return at the time of valuation

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

Would be possible if zoning regulations are changed

22 / 30

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

Very new properties

Very old properties

Commercial properties

Special-purpose buildings

23 / 30

The placement of open house signs must be…?

In line with local municipality regulations

Agreed by the buyer

Chosen by the salesperson

Agreed by the seller

24 / 30

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

Organises open houses

Lists a property as being for sale

Books showings for properties

Negotiates offers

25 / 30

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

REALTORS

All of these

REALTOR

REALTOR logo

26 / 30

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

Sales associate

Any of these

Sales agent

Sales consultant

27 / 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…?

Three months

Six months

Year

Month

28 / 30

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

Condominium units

Commercial properties

Single residential houses

Industrial buildings

29 / 30

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

Is a forbidden practice

Can only be done with the buyer's consent

Can only be done with the seller's consent

Is a standard practice requiring no consent

30 / 30

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

The largest property on a street

The smallest property on a street

A property that is the average size for a street

The most dilapidated property on a street

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