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

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

2 / 30

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

Only to attend another open house event

Only to obtain food or other refreshments

Under no circumstances

If asked to do so by a potential buyer

3 / 30

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

Title/deed and survey

Tax and assessment documents

Lot size and living area

Zoning description

4 / 30

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

The advertisement must include the personal telephone number of the registrant

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

5 / 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…?

24 months

12 months

18 months

6 months

6 / 30

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

Accept the offer directly

Direct them to speak to their own broker/salesperson

Decline the offer

Invite the buyer to become a client of their own brokerage

7 / 30

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

Sales consultant

Sales agent

Any of these

Sales associate

8 / 30

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

Single residential houses

Condominium units

Commercial properties

Industrial buildings

9 / 30

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

A false statement

An exaggerated statement

An incomplete statement

An inaccurate statement

10 / 30

Farming in the neighbourhood refers to…?

Persuading people to leave a particular area

Looking for agricultural properties in a particular area

Trying to get clients away from nearby brokerages

Targeting marketing at a particular area

11 / 30

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

A property that is the average size for a street

The largest property on a street

The smallest property on a street

The most dilapidated property on a street

12 / 30

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

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

A wide range of historical data is available

The prevailing market conditions are a buyer's market

Recent comparable sales are available

13 / 30

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

Verbally agree to the instruction

Politely explain the instruction is impossible

Ignore the instruction

Get this instruction in writing

14 / 30

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

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

Would it be possible if financial circumstances changed

15 / 30

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

Organises open houses

Lists a property as being for sale

Negotiates offers

Books showings for properties

16 / 30

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

Only take photographs of the exterior of the property

Remove any of the seller's personal photographs

Only take photographs of the interior of the property

Remove all furniture from every room

17 / 30

A brokerage website must clearly exhibit…?

Salesperson's name

All of these

Contact information

Disclaimers

18 / 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 the seller has not specifically objected to it

If it will help to sell the property

19 / 30

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

Greet visitors to the property

Place and remove open house signs

Answer questions about the property

Ask visitors to sign the guest register

20 / 30

The placement of open house signs must be…?

Agreed by the seller

Chosen by the salesperson

In line with local municipality regulations

Agreed by the buyer

21 / 30

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

Is a standard practice requiring no consent

Can only be done with the seller's consent

Is a forbidden practice

Can only be done with the buyer's consent

22 / 30

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

Special-purpose buildings

Commercial properties

Very new properties

Very old properties

23 / 30

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

REALTOR

All of these

REALTOR logo

REALTORS

24 / 30

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

Re-commiseration

Reconsideration

Recommendation

Reconciliation

25 / 30

Overpricing a property for sale may result in…?

All of these things

People believing there may be a problem with the property

A salesperson's reputation being negatively affected

Final sale price being considerably lower than market value

26 / 30

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

Datasheet

Legal description

Measurement document

Listing agreement

27 / 30

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

All of these

The seller's personal circumstances

The seller's motivation to have their property sold

The prevailing market conditions

28 / 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…?

Month

Three months

Year

Six months

29 / 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

30 / 30

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

Waterfront properties

Commercial or investment property

Single detached properties

Condominium property

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