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

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

2 / 30

Accessory buildings on industrial lots are primarily used for what?

Staff restrooms

Generating plant

Raw material storage

Vehicle storage

3 / 30

Capital expense quotes for buyers should be…?

Obtained from third-party professionals

Prepared by the salesperson

Prepared by the seller

Any of these

4 / 30

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

Basic warehousing building

Specialised manufacturing building

Specialised warehousing building

Oil refinery

5 / 30

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

All of these

Building requirements

Business requirements

Site requirements

6 / 30

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

20%

40%

10%

30%

7 / 30

Brownfields sites are generally ones which…?

Previously had residential buildings on them

Were previously used for agriculture

Were previously in a natural state

Previously had industrial buildings on them

8 / 30

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

The property owner

The existing tenants

Customer surveys

Potential tenants

9 / 30

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

Any/all of them

Power cables

Storm sewerage

Natural gas lines

10 / 30

Brownfields sites often attract…?

Municipal tax relief

Accelerated planning/approval processes

Any/all of these

Municipal financial assistance

11 / 30

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

Single use industrial purposes

Warehousing facilities for businesses elsewhere

Small low rent units

Expensive substantial manufacturing units

12 / 30

Soil testing of industrial land is undertaken by…?

Third-party experts

The salesperson

The seller

The buyer

13 / 30

Checking employee records should be done as part of…?

Legal due diligence

Environmental due diligence

Structural of due diligence

Financial and operational due diligence

14 / 30

The effective age of a building is…?

Based on the care and maintenance the building has received

Based on the number of years since planning permission was requested

Based on the number of years since it was built

Based on the number of years it has been in operation

15 / 30

A grade level loading dock permits access for…?

Motorcycles

Forklift trucks

Saloon cars

Pickup trucks

16 / 30

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

Vehicles

Live loads

Structural weight

Stored goods

17 / 30

Surveys should be prepared by…?

A building expert

The buyer

The salesperson

An Ontario Land Surveyor

18 / 30

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

Management expenses

Current cost of borrowing

Potential returns

Any/all of these

19 / 30

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

Have to demolish the building and rebuild

Must end the nonconforming use immediately

Will be heavily fined

Can apply for a continuation of nonconforming use

20 / 30

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

The seller

The buyer

A professional measurement company

The seller's brokerage

21 / 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

Refuse to show them properties that offer lower remuneration

Only show them properties that offer good remuneration

Show them the properties offering the largest remuneration first

22 / 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…?

Minor variance

Major variance

Zoning variance

Change of use permission

23 / 30

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

Place the buyer in full possession of all facts

Make sure that all property taxes are paid

Cover the salesperson against legal action

Ensure that the seller gets maximum value

24 / 30

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

Refuse to market the property

Insist that remedial measures must be taken

Report them to the authorities

Warn them that it will adversely affect value

25 / 30

A hydrogeological report may be required if…?

Changes to the water supply are needed

The property has no water supply

The water supply has been cut off for some time

Water pressure is too low

26 / 30

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

10%

20%

40%

30%

27 / 30

Bay depth in a property is what?

The width of the loading dock

The distance between walls

The distance between columns

The distance between floor and ceiling

28 / 30

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

Size of building

Height of building

Purpose of building

Number of employees

29 / 30

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

Delimiter

Battery

Transformer

Converter

30 / 30

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

In a dangerous state

Unfit for habitation

Any/all of these

In violation of municipal/provincial regulations

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