Commercial Real Estate Transactions

Commercial Real Estate Transactions - Test 04

Taking the Ontario Commercial Real Estate Transactions Test is an essential step towards becoming a licensed real estate professional in Ontario. This rigorous test comprises 200 multiple-choice questions and is designed to evaluate prospective real estate agent’s knowledge of commercial property transactions. However, candidates need not worry, as our free Ontario Commercial Real Estate practice test offers an excellent opportunity to hone their skills and prepare for the exam. All questions featured in the practice test have been taken from the official Ontario real estate course book, ensuring that candidates gain a comprehensive understanding of the field’s fundamental concepts and principles.

Commercial Real Estate Transactions - Practice Test 04

Ontario Commercial Real Estate Transactions - Course 4

1 / 30

Measurements of industrial properties for sale should be taken by…?

A professional measurement company

The seller's brokerage

The seller

The buyer

2 / 30

Which of these is an example of a "single purpose" industrial building?

Basic warehousing building

Specialised warehousing building

Oil refinery

Specialised manufacturing building

3 / 30

The tenant mix in a retail centre is ultimately determined by…?

Customer surveys

Potential tenants

The existing tenants

The property owner

4 / 30

If a property falls under "nonconforming use" because its usage predates the passage of zoning bylaws, owners…?

Must end the nonconforming use immediately

Have to demolish the building and rebuild

Can apply for a continuation of nonconforming use

Will be heavily fined

5 / 30

Older industrial properties may be converted into "incubator" buildings, which are characterised by…?

Expensive substantial manufacturing units

Single use industrial purposes

Warehousing facilities for businesses elsewhere

Small low rent units

6 / 30

Capital expense quotes for buyers should be…?

Obtained from third-party professionals

Any of these

Prepared by the salesperson

Prepared by the seller

7 / 30

Whether or not a property is affordable for a specific buyer will depend on the purchase price and…?

Management expenses

Any/all of these

Current cost of borrowing

Potential returns

8 / 30

Brownfields sites often attract…?

Municipal tax relief

Accelerated planning/approval processes

Any/all of these

Municipal financial assistance

9 / 30

A grade level loading dock permits access for…?

Saloon cars

Motorcycles

Forklift trucks

Pickup trucks

10 / 30

Which of these could be granted an easement over industrial land?

Storm sewerage

Power cables

Natural gas lines

Any/all of them

11 / 30

Failure to disclose known latent defects and material latent defects may leave a property…?

Unfit for habitation

In a dangerous state

In violation of municipal/provincial regulations

Any/all of these

12 / 30

Surveys should be prepared by…?

An Ontario Land Surveyor

A building expert

The salesperson

The buyer

13 / 30

Brownfields sites are generally ones which…?

Previously had industrial buildings on them

Were previously used for agriculture

Were previously in a natural state

Previously had residential buildings on them

14 / 30

Bay depth in a property is what?

The distance between columns

The width of the loading dock

The distance between floor and ceiling

The distance between walls

15 / 30

The Ontario Building Code sets the number of bathrooms required in an industrial building on the basis of…?

Number of employees

Size of building

Height of building

Purpose of building

16 / 30

The ultimate goal of due diligence by a salesperson is to…?

Cover the salesperson against legal action

Make sure that all property taxes are paid

Place the buyer in full possession of all facts

Ensure that the seller gets maximum value

17 / 30

Checking employee records should be done as part of…?

Legal due diligence

Financial and operational due diligence

Structural of due diligence

Environmental due diligence

18 / 30

A hydrogeological report may be required if…?

The water supply has been cut off for some time

Changes to the water supply are needed

The property has no water supply

Water pressure is too low

19 / 30

If a buyer wants to alter a building to meet their specific needs in a way that does not comply with local zoning bylaws, they must apply for…?

Change of use permission

Minor variance

Zoning variance

Major variance

20 / 30

A commercial brokerage asked to look for a property for a buyer must perform detailed analysis of their…?

All of these

Business requirements

Site requirements

Building requirements

21 / 30

Office space in industrial buildings is typically limited by zoning laws to a maximum of what percentage of the total area?

20%

30%

40%

10%

22 / 30

Accessory buildings on industrial lots are primarily used for what?

Vehicle storage

Generating plant

Raw material storage

Staff restrooms

23 / 30

The "highest and best use" of a building or vacant land is the one that…?

Will offer the most eco-friendly use of the land

Will offer the greatest benefit to the neighbourhood community

Will provide the greatest tax return to the government

Will produce the greatest financial/amenity return

24 / 30

Floor load refers to the capacity of a floor to support…?

Structural weight

Live loads

Vehicles

Stored goods

25 / 30

The office area of an industrial building generally takes up what percentage of the total building area?

20%

40%

30%

10%

26 / 30

Industrial hydro services commonly use what to change the voltage of the electrical supply?

Battery

Transformer

Converter

Delimiter

27 / 30

Soil testing of industrial land is undertaken by…?

The buyer

The seller

The salesperson

Third-party experts

28 / 30

The effective age of a building is…?

Based on the number of years since it was built

Based on the care and maintenance the building has received

Based on the number of years since planning permission was requested

Based on the number of years it has been in operation

29 / 30

If a seller does not wish to remedy any detrimental conditions on their property before selling, what should a salesperson do?

Warn them that it will adversely affect value

Refuse to market the property

Insist that remedial measures must be taken

Report them to the authorities

30 / 30

When a salesperson has received a buyer's criteria, the code of ethics demands that they should…?

Show them all suitable properties without regard to potential remuneration

Show them the properties offering the largest remuneration first

Refuse to show them properties that offer lower remuneration

Only show them properties that offer good remuneration

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