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

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

Zone coverage

Lot coverage

Ground coverage

Site coverage

2 / 30

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

7460 ft.²

6460 ft.²

4460 ft.²

5460 ft.²

3 / 30

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

1200

600

120

4 / 30

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

Steel

Concrete

Masonry

Insulated concrete

5 / 30

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

Credit

Guarantee

Intent

Commitment

6 / 30

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

How much capital comes as debt

The risk and capitalisation rate

The loan to value ratio

The safety margin

7 / 30

A development loan is given for what purpose?

Producing plans to build a property

Preparing land for building construction

Building properties in deprived areas

Building the external frame of the property

8 / 30

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

0%-1%

2%-4%

1%-2%

4%-10%

9 / 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?

70%

80%

90%

60%

10 / 30

Mixed-use buildings are taxable for…?

Both residential and commercial purposes

Neither commercial purposes nor residential purposes

Residential purposes but not commercial purposes

Commercial purposes but not residential purposes

11 / 30

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

A public way

A lake or similar water source

Another building

An open space

12 / 30

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

5 days

10 days

20 days

30 days

13 / 30

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

Air-conditioning equipment

Flagpole

Penthouse apartment

Satellite dish

14 / 30

What does a wraparound mortgage do?

Guarantees mortgage payments

Combines all existing mortgages

Pays off existing mortgages

Adds additional funds on top of existing mortgages

15 / 30

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

2000 ft.²

1500 ft.²

500 ft.²

1000 ft.²

16 / 30

A Class C office building is usually more than…?

10 years old

5 years old

30 years old

20 years old

17 / 30

Industrial properties are dominated by what type of construction?

Steel

Glass

Brick

Wood

18 / 30

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

125,000 ft.²

325,000 ft.²

25,000 ft.²

225,000 ft.²

19 / 30

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

800,000 ft.²

400,000 ft.²

600,000 ft.²

1,000,000 ft.²

20 / 30

Capital Gains Tax is charged at what rate?

40%

50%

30%

60%

21 / 30

What are zoning setbacks?

Minimum distances from boundaries and highways

Areas where zoning prohibits development

Problems achieving zoning permission

Maximum distances from boundaries and highways

22 / 30

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

0.8

1.2

23 / 30

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

Aesthetic features

Eco-friendliness

Fire safety

Economy

24 / 30

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

Calculate tax liability

Check there are no claims on the property

Exchange keys

Arrange title insurance

25 / 30

Capital Gains Tax is charged on…?

The profit realised from selling capital property

The rental gained from capital property

The money spent renovating capital property

The overall value of a capital property

26 / 30

Phase 1 of an environmental site assessment involves what?

All of these

Laboratory analysis for possible contamination

Contamination removal and treatment

Visual checks for possible contamination

27 / 30

Appraisers may charge extra fees for what?

Providing more than one copy of a report

Dealing with lawyers

Producing paper reports

Sending reports electronically

28 / 30

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

60%

20%

40%

10%

29 / 30

Which of these does not enjoy an exemption from HST?

A building used by a charity

A hospital

A solar powered factory

A school

30 / 30

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

Headaches

Any/all of these

Stress

Respiratory problems

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