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 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

2 / 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

Various services at a flat fee

Services at a sliding scale depending how quickly the property sells

3 / 30

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

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

Recent comparable sales are available

A wide range of historical data is available

The prevailing market conditions are a buyer's market

4 / 30

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

Tax and assessment documents

Zoning description

Title/deed and survey

Lot size and living area

5 / 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

6 / 30

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

Sales consultant

Any of these

Sales associate

Sales agent

7 / 30

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

Direct them to speak to their own broker/salesperson

Accept the offer directly

Invite the buyer to become a client of their own brokerage

Decline the offer

8 / 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

9 / 30

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

An incomplete statement

A false statement

An exaggerated statement

An inaccurate statement

10 / 30

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

Condominium units

Industrial buildings

Single residential houses

Commercial properties

11 / 30

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

The seller's motivation to have their property sold

The seller's personal circumstances

All of these

The prevailing market conditions

12 / 30

Farming in the neighbourhood refers to…?

Looking for agricultural properties in a particular area

Persuading people to leave a particular area

Trying to get clients away from nearby brokerages

Targeting marketing at a particular area

13 / 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 salesperson/broker

The advertisement must contain the name of the brokerage

The advertisement must identify the registrant who places the advertisement

14 / 30

Home staging professionals are used to do what?

Cover up obvious defects in a home

Make a home look more attractive

All of these

Design media listings for a home

15 / 30

The placement of open house signs must be…?

Chosen by the salesperson

Agreed by the buyer

In line with local municipality regulations

Agreed by the seller

16 / 30

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

Recommendation

Re-commiseration

Reconciliation

Reconsideration

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

Greet visitors to the property

Answer questions about the property

Ask visitors to sign the guest register

18 / 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…?

Six months

Three months

Month

Year

19 / 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

18 months

12 months

24 months

20 / 30

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

Lists a property as being for sale

Organises open houses

Negotiates offers

Books showings for properties

21 / 30

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

If asked to do so by a potential buyer

Only to attend another open house event

Only to obtain food or other refreshments

Under no circumstances

22 / 30

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

Measurement document

Legal description

Listing agreement

Datasheet

23 / 30

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

Special-purpose buildings

Very new properties

Very old properties

Commercial properties

24 / 30

Overpricing a property for sale may result in…?

All of these things

A salesperson's reputation being negatively affected

People believing there may be a problem with the property

Final sale price being considerably lower than market value

25 / 30

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

REALTORS

REALTOR logo

REALTOR

All of these

26 / 30

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

Commercial or investment property

Single detached properties

Waterfront properties

Condominium property

27 / 30

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

Is a standard practice requiring no consent

Is a forbidden practice

Can only be done with the buyer's consent

Can only be done with the seller's consent

28 / 30

A brokerage website must clearly exhibit…?

Disclaimers

Contact information

All of these

Salesperson's name

29 / 30

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

Remove any of the seller's personal photographs

Only take photographs of the interior of the property

Remove all furniture from every room

Only take photographs of the exterior of the property

30 / 30

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

Politely explain the instruction is impossible

Ignore the instruction

Verbally agree to the instruction

Get this instruction in writing

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