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

Another building

A lake or similar water source

A public way

An open space

2 / 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%

70%

80%

90%

3 / 30

Capital Gains Tax is charged at what rate?

30%

50%

40%

60%

4 / 30

Mixed-use buildings are taxable for…?

Residential purposes but not commercial purposes

Commercial purposes but not residential purposes

Both residential and commercial purposes

Neither commercial purposes nor residential purposes

5 / 30

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

10%

40%

60%

20%

6 / 30

Appraisers may charge extra fees for what?

Dealing with lawyers

Producing paper reports

Providing more than one copy of a report

Sending reports electronically

7 / 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

8 / 30

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

Flagpole

Satellite dish

Air-conditioning equipment

Penthouse apartment

9 / 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

10 / 30

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

The risk and capitalisation rate

How much capital comes as debt

The loan to value ratio

The safety margin

11 / 30

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

Insulated concrete

Masonry

Concrete

Steel

12 / 30

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

Site coverage

Lot coverage

Zone coverage

Ground coverage

13 / 30

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

5 days

20 days

10 days

30 days

14 / 30

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

4%-10%

0%-1%

2%-4%

1%-2%

15 / 30

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

600,000 ft.²

1,000,000 ft.²

400,000 ft.²

800,000 ft.²

16 / 30

Phase 1 of an environmental site assessment involves what?

All of these

Laboratory analysis for possible contamination

Visual checks for possible contamination

Contamination removal and treatment

17 / 30

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

Respiratory problems

Any/all of these

Headaches

Stress

18 / 30

Industrial properties are dominated by what type of construction?

Steel

Brick

Wood

Glass

19 / 30

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

6460 ft.²

5460 ft.²

7460 ft.²

4460 ft.²

20 / 30

A development loan is given for what purpose?

Building the external frame of the property

Producing plans to build a property

Preparing land for building construction

Building properties in deprived areas

21 / 30

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

Fire safety

Aesthetic features

Economy

Eco-friendliness

22 / 30

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

2000 ft.²

1500 ft.²

500 ft.²

1000 ft.²

23 / 30

What does a wraparound mortgage do?

Guarantees mortgage payments

Pays off existing mortgages

Combines all existing mortgages

Adds additional funds on top of existing mortgages

24 / 30

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

600

120

1200

25 / 30

A Class C office building is usually more than…?

20 years old

30 years old

5 years old

10 years old

26 / 30

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

1.2

0.8

27 / 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

28 / 30

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

Credit

Guarantee

Commitment

Intent

29 / 30

Capital Gains Tax is charged on…?

The rental gained from capital property

The profit realised from selling capital property

The overall value of a capital property

The money spent renovating capital property

30 / 30

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

Calculate tax liability

Arrange title insurance

Check there are no claims on the property

Exchange keys

Your score is