Commercial Real Estate Transactions

Commercial Real Estate Transactions - Test 06

The test consists of 200 multiple-choice questions, which can be intimidating at first glance. However, all practice questions are taken directly from the official Ontario real estate course book, providing test-takers with a solid understanding of the material. Additionally, passing this test is a crucial step towards becoming a licensed commercial real estate agent in Ontario. This license will allow agents to practice in various areas, including leasing, investment, and property management. The test assesses an individual’s knowledge and understanding of commercial real estate transactions, including legal considerations, ethical standards, and market analysis. By familiarizing themselves with the material and taking practice tests, test-takers can increase their chances of passing the Ontario Commercial Real Estate Transactions Test on the first try, paving the way toward a successful career in commercial real estate.

Commercial Real Estate Transactions - Practice Test 06

Ontario Commercial Real Estate Transactions - Course 4

1 / 30

Confirmation that a property's intended use by the buyer is permissible under zoning regulations must be obtained by…?

The seller's broker

The buyer

The seller

The salesperson

2 / 30

To satisfy FINTRAC regulations, which of these parties must be identified and verified to be on the agreement of purchase and sale?

The buyer

All of them

The seller

Any corporation involved

3 / 30

If HST does not apply, a certificate this effect must be provided by…?

Both lawyers

The seller

The buyer

The salesperson

4 / 30

If a seller rejects a buyer's proposed amendments to an agreement, what happens?

The matter must go to court

The original agreement remains valid

The amendments are imposed anyway

The agreement is terminated

5 / 30

If a condominium corporation provides an option to purchase an outdoor pylon sign, the buyer will be responsible for…?

Property taxes on the sign

Maintenance of the sign

Condominium fees for the sign

All of these

6 / 30

Common area maintenance in a property is a responsibility of…?

Only some tenants

All tenants

The landlord and tenants together

The landlord

7 / 30

If municipal property taxes are higher than a builder had estimated due to a final assessment value higher than originally given, a buyer who has signed an agreement…?

Must be compensated by the builder

Must complete the transaction

Has the option to withdraw from the transaction

Cannot complete the transaction without a new agreement

8 / 30

An incomplete property assessment clause should be added to an agreement to protect the buyer against…?

Any/all of these

Increased condominium charges

A fall in property values

Increased property taxes

9 / 30

Industrial property agreements of purchase and sale must be made on form number…?

500

600

400

300

10 / 30

Either landlords or tenants may take a case at the Superior Court of Justice for dispute resolution if the dispute involves sums in excess of…?

$35,000

$25,000

$55,000

$45,000

11 / 30

Which of these is excluded from a tenant's responsibilities if they have a double net lease?

Insurance

Property tax

Maintenance

Major repairs

12 / 30

A lease cannot be enforced unless it contains…?

None of these

A commencement date

Both commencement and expiry dates

An expiry date

13 / 30

The purchase price and deposit should be written on the agreement of purchase and sale as…?

Written numbers

Figures

Both written numbers and figures

Any of these

14 / 30

Which of these is not part of the status certificate provided by the condominium corporation?

A suggested unit price

Corporation financial statements

Reserve fund audit

Insurance details

15 / 30

A salesperson should always recommend that a buyer has all documentation reviewed by…?

Third-party professionals

A trusted friend

The salesperson

Themselves

16 / 30

Any damage to a property caused by the agreed removal of fixtures and fittings must be paid for by…?

The seller's insurance

The seller and buyer equally

The buyer

The salesperson

17 / 30

The status certificate conditional clause should ensure that if a unit proves unsuitable for the buyer's intended purposes they can terminate the agreement…?

Without penalty

With a financial penalty to the seller

With a small financial penalty

Only if they surrender their deposit

18 / 30

A lease in which a tenant pays a set rental with the landlord having responsibility for all other expenses is known as a…?

Net lease

Retail ground lease

Percentage lease

Gross lease

19 / 30

The concept of privity means what?

Commercial tenants may not sublet their lease without consent

Commercial tenants may sublet their lease without consent

Commercial landlords may end a lease at will

Commercial landlords have no control over subletting

20 / 30

Which of these applies to a percentage lease?

The landlord pays a percentage of the tenant's property tax

The landlord pays a percentage of rental profits to the tenant

A tenant pays a percentage of sales to the landlord

A tenant can have their rent reduced by the percentage of their losses

21 / 30

The utility load of a buyer's proposed usage should be confirmed by…?

Energy company

The seller's business manager

The buyer's inspection

Third-party electrical experts

22 / 30

Which of these must a tenant pay a share of if they have a triple net lease?

All of them

Major repairs costs

Insurance costs

Maintenance costs

23 / 30

The basic lease used by a landlord in a commercial complex that applies to most of the tenants is known as the…?

Average lease

Standard lease

Common lease

Baseline lease

24 / 30

A levy charged by the condominium corporation to pay for costs of lawsuits, repairs or unexpected expenses is known as a…?

Additional assessment

Emergency assessment

Special assessment

Extra assessment

25 / 30

On a retail ground lease, which of these applies?

The landlord leases the land and the building

The tenant owns the land and the landlord leases the building

The tenant owns the land and the building

The landlord leases the land and the tenant owns the building

26 / 30

An "anchor tenant" in a shopping centre may…?

Be able to prevent other tenants selling similar products to them

Do all of these things

Reduce parking space for customers of smaller tenants

Pay lower rent than other tenants

27 / 30

Industrial premises can have a floor to ceiling height of up to…?

16 feet

36 feet

46 feet

26 feet

28 / 30

In a rent free period at the start of a lease, which of these applies?

The tenant only pays operating and utility costs

The tenant only pays utility costs

The landlord pays all costs

The tenant only pays operating costs

29 / 30

If significant contamination of a site is revealed, the buyer…?

Must agree to bear the cost of cleanup

Must still progress with the agreement

Must share the cost of cleanup with the seller

May terminate the agreement

30 / 30

Issues affecting the closing of a transaction, such as environmental problems or damage, may be addressed by…?

Financial compensation from seller to buyer

Extension of the closing date

Extension of the closing date and financial compensation from seller to buyer

Any/all of these

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