Residential Real Estate Transactions - Test 07

The Ontario Residential Real Estate Transactions Test is a crucial step towards becoming a licensed real estate agent in Ontario. The exam consists of 200 multiple-choice questions, all of which are based on the official course material. The exam aims to test candidates’ comprehension of the legal and ethical obligations of real estate agents, as well as their ability to provide valuable guidance to clients in residential real estate transactions. It is imperative that candidates prepare extensively for the exam to pass it with flying colors. The exam covers various topics, including market analysis, property valuation, financing options, and real estate contracts. Additionally, the exam assesses candidates’ knowledge of various laws and regulations governing real estate transactions in Ontario, such as the Residential Tenancies Act and the Real Estate and Business Brokers Act. Therefore, it is crucial that candidates dedicate sufficient time to study the material and practice answering questions before taking the exam.

Residential Real Estate Transactions - Practice Test 07

Ontario Residential Real Estate Transactions - Course 2

1 / 20

A Seller Take Back Mortgage is one where…?

The seller pays off the buyer's mortgage on their previous property

The seller has the first right of refusal if the buyer defaults on their mortgage

The buyer gives a mortgage loan to the seller

The seller gives a mortgage loan to the buyer

2 / 20

Every page of the selling agreement which does not require a signature should have…?

All of these

The date of the agreement at the bottom

Buyer and seller initials at the bottom

The signature of the brokers at the bottom

3 / 20

When a home inspection report is ordered, and agreement may not progress unless it is…?

Regarded as satisfactory by the buyer

Such that it would be regarded as satisfactory by any reasonable person

Regarded as satisfactory by the salesperson

Regarded as satisfactory by all parties

4 / 20

A "SOLD" sign should be removed from a property…?

A maximum of one week after the date of closing

On or before the date of closing

A minimum of one week before the date of closing

A maximum of two weeks after the date of closing

5 / 20

If a registrant is purchasing or selling real estate in which they have a direct or indirect interest, they must…?

Only disclose this to the other party if asked

Disclose this verbally to the other party

Not disclose this to the other party

Disclose this in writing to the other party

6 / 20

If a virtual currency transaction involves $10,000 or more, it must be reported to FINTRAC within what time of receipt?

Five business days

Three business days

Two business days

Four business days

7 / 20

An agreement may only be signed electronically if…?

The buying party agrees to it

Both brokerages agree to it

The selling party agrees to it

All parties agree to it

8 / 20

A purchase and sale agreement may be witnessed by…?

Members of the brokerage involved

The salespeople involved

Independent third-party witnesses

Any of these

9 / 20

A Large Cash Transaction Report must be made to FINTRAC within 15 days if the amount exceeds…?

$5,000

$20,000

$30,000

$10,000

10 / 20

If a seller receives more than one offer simultaneously…?

They may make counter offers to all of them

They may make counter offers to up to three of them

They may not make any counter offers

They should only make one counter offer at a time

11 / 20

What is the rate of land transfer tax for the proportion of any sum over $2 million in a real estate transaction?

2.50%

1.50%

0.50%

12 / 20

The listing brokerage may provide information about other offers to a person making an offer on a property…?

If the other offers are equal

If the other offers are higher

Under no circumstances

If the other offers are lower

13 / 20

When a client's credit file is used to verify their identification, it must have a minimum of…?

One year of records

Four years of records

Two years of records

Three years of records

14 / 20

Which of these is a condition of accepting a property with a well for water supply?

The pump and all related equipment must be in proper operating condition

All of them

There must be sufficient water for the buyer's household needs

The water must be of a quality suitable for human consumption

15 / 20

A buyer is responsible for paying costs such as utility bills, heating fuel bills etc from…?

The day they pay a deposit

The day of completion

The day an offer is accepted

The day an offer is made

16 / 20

The "representation or warranties clause" ensures that the seller is responsible for the condition of the property up to…?

The day of offer acceptance

One month after the date of completion

The day of completion

Three months after the date of completion

17 / 20

Which of these is likely to increase the chances of a buyer having an offer accepted?

Imposing fewer conditions

Offering a large deposit

All of them

Having a preapproved mortgage

18 / 20

If conditions exist in the purchase and sale agreement, it becomes a legally binding contract when all parties have signed the…?

Notice of fulfilment of conditions document

Notice of completion of conditions document

Notice of conditions finalised document

Notice of conditions all agreed document

19 / 20

Helping to complete all tasks necessary to complete a transaction during the conditional period is the responsibility of…?

The buyer's salespeople

Salespeople from both sides

None of the salespeople involved

The seller's salespeople

20 / 20

If an offer is accepted, the buyer and seller brokerages must retain a copy of it for a minimum of…?

Six years

Seven years

Nine years

Three years

Your score is