Commercial Real Estate Transactions

Commercial Real Estate Transactions - Test 02

Taking the Ontario Commercial Real Estate Transactions Test is an essential step for anyone looking to become a licensed real estate agent in Ontario. The test comprises 200 multiple-choice questions and answers, which are sourced from the official Ontario real estate course book. It mirrors the actual test and exam, making it an ideal practice tool for those seeking to pass on the first attempt. The test covers a broad range of topics including commercial real estate transactions, leasing, property management, and investment analysis. It is designed to assess the candidate’s knowledge and skills in relation to Ontario’s real estate market and legal requirements.

Commercial Real Estate Transactions - Practice Test 02

Ontario Commercial Real Estate Transactions - Course 4

1 / 30

A conditional loan approval letter is known as a letter of…?

Intent

Commitment

Credit

Guarantee

2 / 30

Non-resident sellers must pay their Capital Gains Tax within what time of closing a real estate sale?

5 days

10 days

30 days

20 days

3 / 30

By law, institutional lenders are restricted (unless insurance is present) to lending a maximum of what percentage of the appraised value or sale price of a property?

90%

70%

60%

80%

4 / 30

Capital Gains Tax is charged on…?

The profit realised from selling capital property

The money spent renovating capital property

The rental gained from capital property

The overall value of a capital property

5 / 30

The building is defined as a "small office building" if it has less than what amount of floor space?

7460 ft.²

4460 ft.²

6460 ft.²

5460 ft.²

6 / 30

Industrial properties are dominated by what type of construction?

Steel

Glass

Wood

Brick

7 / 30

The maximum area of a lot on which it is permissible to build a building is known as…?

Zone coverage

Site coverage

Ground coverage

Lot coverage

8 / 30

The Ontario Fire Code requires continuous and unobstructed entry and exit from a building to…?

A lake or similar water source

Another building

An open space

A public way

9 / 30

A development loan is given for what purpose?

Producing plans to build a property

Building the external frame of the property

Building properties in deprived areas

Preparing land for building construction

10 / 30

Mortgage brokers may charge what percentage of a loan amount as a service charge?

1%-2%

0%-1%

2%-4%

4%-10%

11 / 30

If a building has "sick building syndrome" it may cause the occupants…?

Headaches

Respiratory problems

Any/all of these

Stress

12 / 30

Which of these tasks would you not expect to be undertaken by a buyer's lawyer?

Arrange title insurance

Calculate tax liability

Check there are no claims on the property

Exchange keys

13 / 30

The leverage ratio is a financial measurement used to calculate…?

The loan to value ratio

The safety margin

How much capital comes as debt

The risk and capitalisation rate

14 / 30

Which of these would not be given an exception from height restrictions?

Penthouse apartment

Flagpole

Air-conditioning equipment

Satellite dish

15 / 30

Lenders typically require a debt service coverage ratio of at least?

0.8

1.2

16 / 30

Appraisers may charge extra fees for what?

Sending reports electronically

Producing paper reports

Dealing with lawyers

Providing more than one copy of a report

17 / 30

Which of these types of construction requires additional fire resistant materials to prevent failure in a fire?

Insulated concrete

Masonry

Steel

Concrete

18 / 30

Which of these does not enjoy an exemption from HST?

A hospital

A solar powered factory

A building used by a charity

A school

19 / 30

The depreciation of office furniture and equipment which can be offset against tax is typically calculated as how much per year?

10%

40%

60%

20%

20 / 30

What does a wraparound mortgage do?

Combines all existing mortgages

Pays off existing mortgages

Guarantees mortgage payments

Adds additional funds on top of existing mortgages

21 / 30

A neighbourhood shopping centre will have up to how much leasable area?

125,000 ft.²

25,000 ft.²

325,000 ft.²

225,000 ft.²

22 / 30

Mixed-use buildings are taxable for…?

Residential purposes but not commercial purposes

Both residential and commercial purposes

Commercial purposes but not residential purposes

Neither commercial purposes nor residential purposes

23 / 30

A Class C office building is usually more than…?

20 years old

10 years old

30 years old

5 years old

24 / 30

Phase 1 of an environmental site assessment involves what?

Laboratory analysis for possible contamination

All of these

Visual checks for possible contamination

Contamination removal and treatment

25 / 30

A super regional shopping centre has more than how much leasable area?

400,000 ft.²

800,000 ft.²

600,000 ft.²

1,000,000 ft.²

26 / 30

The LEED design standards offer benchmarks for what aspect of a building?

Eco-friendliness

Fire safety

Aesthetic features

Economy

27 / 30

The typical office condominium offers office sizes up to around…?

2000 ft.²

500 ft.²

1000 ft.²

1500 ft.²

28 / 30

A building with a total floor area of 120,000 feet would require how many parking spaces?

1200

120

600

29 / 30

Capital Gains Tax is charged at what rate?

60%

40%

50%

30%

30 / 30

What are zoning setbacks?

Areas where zoning prohibits development

Problems achieving zoning permission

Minimum distances from boundaries and highways

Maximum distances from boundaries and highways

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