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

5460 ft.²

6460 ft.²

4460 ft.²

7460 ft.²

2 / 30

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

Eco-friendliness

Economy

Aesthetic features

Fire safety

3 / 30

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

Credit

Intent

Commitment

Guarantee

4 / 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%

90%

60%

70%

5 / 30

A Class C office building is usually more than…?

10 years old

20 years old

30 years old

5 years old

6 / 30

Which of these does not enjoy an exemption from HST?

A hospital

A school

A building used by a charity

A solar powered factory

7 / 30

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

Penthouse apartment

Air-conditioning equipment

Flagpole

Satellite dish

8 / 30

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

1000 ft.²

2000 ft.²

500 ft.²

1500 ft.²

9 / 30

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

25,000 ft.²

125,000 ft.²

225,000 ft.²

325,000 ft.²

10 / 30

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

20%

10%

40%

60%

11 / 30

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

1.2

0.8

12 / 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

13 / 30

What are zoning setbacks?

Areas where zoning prohibits development

Problems achieving zoning permission

Maximum distances from boundaries and highways

Minimum distances from boundaries and highways

14 / 30

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

1%-2%

4%-10%

0%-1%

2%-4%

15 / 30

Appraisers may charge extra fees for what?

Providing more than one copy of a report

Sending reports electronically

Dealing with lawyers

Producing paper reports

16 / 30

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

Arrange title insurance

Exchange keys

Calculate tax liability

Check there are no claims on the property

17 / 30

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

120

600

1200

18 / 30

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

The loan to value ratio

How much capital comes as debt

The safety margin

The risk and capitalisation rate

19 / 30

Capital Gains Tax is charged on…?

The overall value of a capital property

The profit realised from selling capital property

The rental gained from capital property

The money spent renovating capital property

20 / 30

Phase 1 of an environmental site assessment involves what?

Laboratory analysis for possible contamination

Visual checks for possible contamination

Contamination removal and treatment

All of these

21 / 30

A development loan is given for what purpose?

Building the external frame of the property

Building properties in deprived areas

Producing plans to build a property

Preparing land for building construction

22 / 30

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

20 days

5 days

30 days

10 days

23 / 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

24 / 30

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

Headaches

Stress

Respiratory problems

Any/all of these

25 / 30

Mixed-use buildings are taxable for…?

Residential purposes but not commercial purposes

Both residential and commercial purposes

Neither commercial purposes nor residential purposes

Commercial purposes but not residential purposes

26 / 30

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

Zone coverage

Lot coverage

Site coverage

Ground coverage

27 / 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

28 / 30

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

Steel

Insulated concrete

Concrete

Masonry

29 / 30

Capital Gains Tax is charged at what rate?

40%

50%

30%

60%

30 / 30

Industrial properties are dominated by what type of construction?

Wood

Steel

Glass

Brick

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