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

What are zoning setbacks?

Maximum distances from boundaries and highways

Problems achieving zoning permission

Areas where zoning prohibits development

Minimum distances from boundaries and highways

2 / 30

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

Air-conditioning equipment

Flagpole

Satellite dish

Penthouse apartment

3 / 30

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

4460 ft.²

6460 ft.²

7460 ft.²

5460 ft.²

4 / 30

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

Concrete

Masonry

Steel

Insulated concrete

5 / 30

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

Any/all of these

Respiratory problems

Stress

Headaches

6 / 30

A Class C office building is usually more than…?

30 years old

20 years old

10 years old

5 years old

7 / 30

Capital Gains Tax is charged on…?

The money spent renovating capital property

The profit realised from selling capital property

The rental gained from capital property

The overall value of a capital property

8 / 30

Mixed-use buildings are taxable for…?

Commercial purposes but not residential purposes

Both residential and commercial purposes

Residential purposes but not commercial purposes

Neither commercial purposes nor residential purposes

9 / 30

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

225,000 ft.²

325,000 ft.²

25,000 ft.²

125,000 ft.²

10 / 30

A development loan is given for what purpose?

Preparing land for building construction

Producing plans to build a property

Building the external frame of the property

Building properties in deprived areas

11 / 30

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

Another building

A lake or similar water source

An open space

A public way

12 / 30

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

60%

40%

20%

10%

13 / 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?

80%

70%

60%

90%

14 / 30

Capital Gains Tax is charged at what rate?

60%

30%

40%

50%

15 / 30

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

2%-4%

1%-2%

0%-1%

4%-10%

16 / 30

Industrial properties are dominated by what type of construction?

Wood

Brick

Glass

Steel

17 / 30

Which of these does not enjoy an exemption from HST?

A school

A hospital

A solar powered factory

A building used by a charity

18 / 30

Appraisers may charge extra fees for what?

Sending reports electronically

Providing more than one copy of a report

Producing paper reports

Dealing with lawyers

19 / 30

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

Site coverage

Ground coverage

Zone coverage

Lot coverage

20 / 30

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

20 days

30 days

10 days

5 days

21 / 30

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

600,000 ft.²

1,000,000 ft.²

800,000 ft.²

400,000 ft.²

22 / 30

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

Check there are no claims on the property

Exchange keys

Calculate tax liability

Arrange title insurance

23 / 30

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

Economy

Eco-friendliness

Aesthetic features

Fire safety

24 / 30

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

500 ft.²

1000 ft.²

2000 ft.²

1500 ft.²

25 / 30

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

1.2

0.8

26 / 30

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

Credit

Guarantee

Intent

Commitment

27 / 30

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

600

120

1200

28 / 30

Phase 1 of an environmental site assessment involves what?

All of these

Contamination removal and treatment

Laboratory analysis for possible contamination

Visual checks for possible contamination

29 / 30

What does a wraparound mortgage do?

Guarantees mortgage payments

Pays off existing mortgages

Adds additional funds on top of existing mortgages

Combines all existing mortgages

30 / 30

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

The safety margin

The risk and capitalisation rate

The loan to value ratio

How much capital comes as debt

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