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

Capital Gains Tax is charged at what rate?

30%

40%

50%

60%

2 / 30

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

A public way

An open space

A lake or similar water source

Another building

3 / 30

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

Masonry

Insulated concrete

Steel

Concrete

4 / 30

What are zoning setbacks?

Maximum distances from boundaries and highways

Problems achieving zoning permission

Minimum distances from boundaries and highways

Areas where zoning prohibits development

5 / 30

What does a wraparound mortgage do?

Pays off existing mortgages

Adds additional funds on top of existing mortgages

Guarantees mortgage payments

Combines all existing mortgages

6 / 30

A Class C office building is usually more than…?

20 years old

10 years old

30 years old

5 years old

7 / 30

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

Penthouse apartment

Flagpole

Satellite dish

Air-conditioning equipment

8 / 30

Capital Gains Tax is charged on…?

The rental gained from capital property

The money spent renovating capital property

The overall value of a capital property

The profit realised from selling capital property

9 / 30

Which of these does not enjoy an exemption from HST?

A building used by a charity

A school

A solar powered factory

A hospital

10 / 30

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

Economy

Eco-friendliness

Fire safety

Aesthetic features

11 / 30

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

1.2

0.8

12 / 30

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

Check there are no claims on the property

Arrange title insurance

Calculate tax liability

Exchange keys

13 / 30

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

Headaches

Any/all of these

Respiratory problems

Stress

14 / 30

Appraisers may charge extra fees for what?

Producing paper reports

Dealing with lawyers

Sending reports electronically

Providing more than one copy of a report

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%

10%

60%

16 / 30

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

Ground coverage

Site coverage

Lot coverage

Zone coverage

17 / 30

A development loan is given for what purpose?

Building properties in deprived areas

Preparing land for building construction

Building the external frame of the property

Producing plans to build a property

18 / 30

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

1000 ft.²

2000 ft.²

1500 ft.²

500 ft.²

19 / 30

Phase 1 of an environmental site assessment involves what?

Contamination removal and treatment

All of these

Visual checks for possible contamination

Laboratory analysis for possible contamination

20 / 30

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

120

1200

600

21 / 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

22 / 30

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

The risk and capitalisation rate

The loan to value ratio

The safety margin

How much capital comes as debt

23 / 30

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

1%-2%

0%-1%

2%-4%

4%-10%

24 / 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%

90%

70%

25 / 30

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

20 days

5 days

10 days

30 days

26 / 30

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

25,000 ft.²

325,000 ft.²

225,000 ft.²

125,000 ft.²

27 / 30

Industrial properties are dominated by what type of construction?

Glass

Wood

Steel

Brick

28 / 30

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

Guarantee

Intent

Commitment

Credit

29 / 30

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

7460 ft.²

4460 ft.²

6460 ft.²

5460 ft.²

30 / 30

Mixed-use buildings are taxable for…?

Neither commercial purposes nor residential purposes

Residential purposes but not commercial purposes

Both residential and commercial purposes

Commercial purposes but not residential purposes

Your score is