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 buyer gives a mortgage loan to the seller

The seller gives a mortgage loan to the buyer

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

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

2 / 20

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

All of them

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

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

The water must be of a quality suitable for human consumption

3 / 20

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

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

Regarded as satisfactory by all parties

Regarded as satisfactory by the buyer

Regarded as satisfactory by the salesperson

4 / 20

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

Nine years

Three years

Six years

Seven years

5 / 20

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

Three years of records

Four years of records

One year of records

Two years of records

6 / 20

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

0.50%

1.50%

2.50%

7 / 20

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

Offering a large deposit

All of them

Having a preapproved mortgage

Imposing fewer conditions

8 / 20

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

Buyer and seller initials at the bottom

All of these

The signature of the brokers at the bottom

The date of the agreement at the bottom

9 / 20

A purchase and sale agreement may be witnessed by…?

The salespeople involved

Members of the brokerage involved

Any of these

Independent third-party witnesses

10 / 20

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

Salespeople from both sides

The seller's salespeople

The buyer's salespeople

None of the salespeople involved

11 / 20

An agreement may only be signed electronically if…?

The selling party agrees to it

All parties agree to it

The buying party agrees to it

Both brokerages agree to it

12 / 20

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

Notice of conditions all agreed document

Notice of completion of conditions document

Notice of fulfilment of conditions document

Notice of conditions finalised document

13 / 20

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

On or before the date of closing

A maximum of one week after the date of closing

A maximum of two weeks after the date of closing

A minimum of one week before the date of closing

14 / 20

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

Four business days

Five business days

Two business days

Three business days

15 / 20

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

The day an offer is made

The day they pay a deposit

The day an offer is accepted

The day of completion

16 / 20

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

$5,000

$10,000

$30,000

$20,000

17 / 20

If a seller receives more than one offer simultaneously…?

They should only make one counter offer at a time

They may not make any counter offers

They may make counter offers to up to three of them

They may make counter offers to all of them

18 / 20

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

One month after the date of completion

The day of offer acceptance

The day of completion

Three months after the date of completion

19 / 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

Not disclose this to the other party

Disclose this in writing to the other party

Disclose this verbally to the other party

20 / 20

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

If the other offers are higher

Under no circumstances

If the other offers are lower

If the other offers are equal

Your score is