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

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

Insulated concrete

Masonry

Concrete

Steel

2 / 30

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

1.2

0.8

3 / 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

5460 ft.²

4460 ft.²

4 / 30

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

Intent

Commitment

Guarantee

Credit

5 / 30

A development loan is given for what purpose?

Producing plans to build a property

Preparing land for building construction

Building the external frame of the property

Building properties in deprived areas

6 / 30

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

Any/all of these

Respiratory problems

Headaches

Stress

7 / 30

Capital Gains Tax is charged on…?

The overall value of a capital property

The profit realised from selling capital property

The money spent renovating capital property

The rental gained from capital property

8 / 30

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

1%-2%

4%-10%

0%-1%

2%-4%

9 / 30

Capital Gains Tax is charged at what rate?

30%

50%

60%

40%

10 / 30

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

5 days

20 days

30 days

10 days

11 / 30

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

2000 ft.²

1000 ft.²

500 ft.²

1500 ft.²

12 / 30

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

Flagpole

Air-conditioning equipment

Penthouse apartment

Satellite dish

13 / 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

14 / 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?

60%

80%

70%

90%

15 / 30

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

20%

40%

60%

10%

16 / 30

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

600,000 ft.²

400,000 ft.²

800,000 ft.²

1,000,000 ft.²

17 / 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

Arrange title insurance

Exchange keys

18 / 30

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

The loan to value ratio

The risk and capitalisation rate

The safety margin

How much capital comes as debt

19 / 30

Industrial properties are dominated by what type of construction?

Brick

Steel

Glass

Wood

20 / 30

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

600

1200

120

21 / 30

What are zoning setbacks?

Problems achieving zoning permission

Minimum distances from boundaries and highways

Areas where zoning prohibits development

Maximum distances from boundaries and highways

22 / 30

Appraisers may charge extra fees for what?

Providing more than one copy of a report

Producing paper reports

Sending reports electronically

Dealing with lawyers

23 / 30

What does a wraparound mortgage do?

Adds additional funds on top of existing mortgages

Pays off existing mortgages

Combines all existing mortgages

Guarantees mortgage payments

24 / 30

A Class C office building is usually more than…?

20 years old

10 years old

30 years old

5 years old

25 / 30

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

A public way

Another building

A lake or similar water source

An open space

26 / 30

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

Ground coverage

Zone coverage

Site coverage

Lot coverage

27 / 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

28 / 30

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

25,000 ft.²

225,000 ft.²

125,000 ft.²

325,000 ft.²

29 / 30

Mixed-use buildings are taxable for…?

Residential purposes but not commercial purposes

Neither commercial purposes nor residential purposes

Commercial purposes but not residential purposes

Both residential and commercial purposes

30 / 30

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

Fire safety

Aesthetic features

Economy

Eco-friendliness

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