Commercial Real Estate Transactions

Commercial Real Estate Transactions - Test 04

Taking the Ontario Commercial Real Estate Transactions Test is an essential step towards becoming a licensed real estate professional in Ontario. This rigorous test comprises 200 multiple-choice questions and is designed to evaluate prospective real estate agent’s knowledge of commercial property transactions. However, candidates need not worry, as our free Ontario Commercial Real Estate practice test offers an excellent opportunity to hone their skills and prepare for the exam. All questions featured in the practice test have been taken from the official Ontario real estate course book, ensuring that candidates gain a comprehensive understanding of the field’s fundamental concepts and principles.

Commercial Real Estate Transactions - Practice Test 04

Ontario Commercial Real Estate Transactions - Course 4

1 / 30

Which of these is an example of a "single purpose" industrial building?

Specialised manufacturing building

Specialised warehousing building

Basic warehousing building

Oil refinery

2 / 30

When a salesperson has received a buyer's criteria, the code of ethics demands that they should…?

Show them all suitable properties without regard to potential remuneration

Show them the properties offering the largest remuneration first

Only show them properties that offer good remuneration

Refuse to show them properties that offer lower remuneration

3 / 30

If a property falls under "nonconforming use" because its usage predates the passage of zoning bylaws, owners…?

Will be heavily fined

Have to demolish the building and rebuild

Must end the nonconforming use immediately

Can apply for a continuation of nonconforming use

4 / 30

The effective age of a building is…?

Based on the number of years since planning permission was requested

Based on the number of years since it was built

Based on the care and maintenance the building has received

Based on the number of years it has been in operation

5 / 30

Capital expense quotes for buyers should be…?

Prepared by the salesperson

Any of these

Prepared by the seller

Obtained from third-party professionals

6 / 30

Accessory buildings on industrial lots are primarily used for what?

Staff restrooms

Generating plant

Raw material storage

Vehicle storage

7 / 30

The office area of an industrial building generally takes up what percentage of the total building area?

40%

10%

30%

20%

8 / 30

The Ontario Building Code sets the number of bathrooms required in an industrial building on the basis of…?

Size of building

Number of employees

Purpose of building

Height of building

9 / 30

The tenant mix in a retail centre is ultimately determined by…?

Customer surveys

Potential tenants

The existing tenants

The property owner

10 / 30

Which of these could be granted an easement over industrial land?

Power cables

Natural gas lines

Any/all of them

Storm sewerage

11 / 30

Measurements of industrial properties for sale should be taken by…?

A professional measurement company

The buyer

The seller

The seller's brokerage

12 / 30

A grade level loading dock permits access for…?

Pickup trucks

Forklift trucks

Saloon cars

Motorcycles

13 / 30

If a buyer wants to alter a building to meet their specific needs in a way that does not comply with local zoning bylaws, they must apply for…?

Zoning variance

Change of use permission

Major variance

Minor variance

14 / 30

Office space in industrial buildings is typically limited by zoning laws to a maximum of what percentage of the total area?

20%

10%

30%

40%

15 / 30

Checking employee records should be done as part of…?

Structural of due diligence

Legal due diligence

Financial and operational due diligence

Environmental due diligence

16 / 30

Bay depth in a property is what?

The distance between columns

The width of the loading dock

The distance between floor and ceiling

The distance between walls

17 / 30

Surveys should be prepared by…?

The salesperson

A building expert

An Ontario Land Surveyor

The buyer

18 / 30

Older industrial properties may be converted into "incubator" buildings, which are characterised by…?

Warehousing facilities for businesses elsewhere

Single use industrial purposes

Expensive substantial manufacturing units

Small low rent units

19 / 30

Soil testing of industrial land is undertaken by…?

Third-party experts

The buyer

The seller

The salesperson

20 / 30

Brownfields sites often attract…?

Municipal financial assistance

Municipal tax relief

Accelerated planning/approval processes

Any/all of these

21 / 30

A commercial brokerage asked to look for a property for a buyer must perform detailed analysis of their…?

All of these

Business requirements

Site requirements

Building requirements

22 / 30

Failure to disclose known latent defects and material latent defects may leave a property…?

In violation of municipal/provincial regulations

Any/all of these

In a dangerous state

Unfit for habitation

23 / 30

The ultimate goal of due diligence by a salesperson is to…?

Place the buyer in full possession of all facts

Ensure that the seller gets maximum value

Cover the salesperson against legal action

Make sure that all property taxes are paid

24 / 30

Whether or not a property is affordable for a specific buyer will depend on the purchase price and…?

Current cost of borrowing

Management expenses

Any/all of these

Potential returns

25 / 30

Industrial hydro services commonly use what to change the voltage of the electrical supply?

Battery

Converter

Delimiter

Transformer

26 / 30

The "highest and best use" of a building or vacant land is the one that…?

Will provide the greatest tax return to the government

Will produce the greatest financial/amenity return

Will offer the greatest benefit to the neighbourhood community

Will offer the most eco-friendly use of the land

27 / 30

A hydrogeological report may be required if…?

Water pressure is too low

Changes to the water supply are needed

The property has no water supply

The water supply has been cut off for some time

28 / 30

Brownfields sites are generally ones which…?

Previously had industrial buildings on them

Were previously in a natural state

Previously had residential buildings on them

Were previously used for agriculture

29 / 30

Floor load refers to the capacity of a floor to support…?

Stored goods

Live loads

Structural weight

Vehicles

30 / 30

If a seller does not wish to remedy any detrimental conditions on their property before selling, what should a salesperson do?

Warn them that it will adversely affect value

Report them to the authorities

Refuse to market the property

Insist that remedial measures must be taken

Your score is