Residential Real Estate Transactions - Test 05

The 200 multiple-choice questions, all derived from official course material, cover the full spectrum of topics essential for ensuring the successful completion of real estate transactions in Ontario. These topics include legal and regulatory frameworks, relevant documentation, property management, and ethical considerations, among many others. While passing this test with flying colors is indeed an accomplishment, the real value comes from the thorough preparation it demands. Aspiring real estate agents must commit to investing the necessary time and effort into studying the course materials in-depth and accessing additional resources to sharpen their knowledge and skills. Nonetheless, the payoff can be significant, not only in terms of receiving accreditation but also in gaining the competence and confidence required to excel in the Ontario real estate market.

Residential Real Estate Transactions - Practice Test 05

Ontario Residential Real Estate Transactions - Course 2

1 / 30

Distributing flyers advertising that a property has been sold...?

Is a forbidden practice

Can only be done with the seller's consent

Can only be done with the buyer's consent

Is a standard practice requiring no consent

2 / 30

A registrant may not describe themselves in a property advertisement as…?

Sales agent

Sales consultant

Any of these

Sales associate

3 / 30

A brokerage website must clearly exhibit…?

Contact information

Salesperson's name

Disclaimers

All of these

4 / 30

Which of these must be considered when setting a reasonable listing price for a property?

The seller's motivation to have their property sold

The prevailing market conditions

The seller's personal circumstances

All of these

5 / 30

Home staging professionals are used to do what?

Design media listings for a home

Cover up obvious defects in a home

All of these

Make a home look more attractive

6 / 30

In a "mere posting" agreement, a brokerage only…?

Organises open houses

Lists a property as being for sale

Books showings for properties

Negotiates offers

7 / 30

Which of these properties will often provide the best value for a buyer?

A property that is the average size for a street

The smallest property on a street

The most dilapidated property on a street

The largest property on a street

8 / 30

If during an open house a buyer who is the client of another brokerage wishes to make an offer, the salesperson must…?

Accept the offer directly

Decline the offer

Direct them to speak to their own broker/salesperson

Invite the buyer to become a client of their own brokerage

9 / 30

The source documents for the legal description on the data sheet are…?

Tax and assessment documents

Title/deed and survey

Zoning description

Lot size and living area

10 / 30

The "cost approach" to estimating value may not work well with…?

Commercial properties

Special-purpose buildings

Very old properties

Very new properties

11 / 30

An advertising statement that is not complete enough for someone to understand its truth is known as…?

A false statement

An exaggerated statement

An incomplete statement

An inaccurate statement

12 / 30

Which of these is not one of REBBA's four minimum standards for advertising?

The advertisement must identify the registrant who places the advertisement

The advertisement must contain the name of the brokerage

The advertisement must include the personal telephone number of the registrant

The advertisement must contain the name of the salesperson/broker

13 / 30

Overpricing a property for sale may result in…?

A salesperson's reputation being negatively affected

People believing there may be a problem with the property

All of these things

Final sale price being considerably lower than market value

14 / 30

The "direct comparison approach" to valuation works best when…?

A wide range of historical data is available

The prevailing market conditions are a buyer's market

Recent comparable sales are available

The seller is not in a hurry to dispose of their property

15 / 30

When taking photographs for a listing, a salesperson should…?

Only take photographs of the exterior of the property

Remove any of the seller's personal photographs

Remove all furniture from every room

Only take photographs of the interior of the property

16 / 30

A la carte remuneration means that the seller is offered…?

Services at a combination of percentage of sale price and flat fee

Various services at a flat fee

Services at a percentage of the sale price

Services at a sliding scale depending how quickly the property sells

17 / 30

A salesperson may leave an open house event when it is in progress…?

Only to attend another open house event

If asked to do so by a potential buyer

Under no circumstances

Only to obtain food or other refreshments

18 / 30

Which of these is it not permitted for an unregistered assistant to do at an open house?

Ask visitors to sign the guest register

Answer questions about the property

Place and remove open house signs

Greet visitors to the property

19 / 30

In advertising, only members of CREO may use the trademark…?

All of these

REALTOR

REALTORS

REALTOR logo

20 / 30

A Comparative Market Analysis shows a seller how their property ranks in comparison with similar properties that are on sale, have sold, or were listed but expired in the previous…?

12 months

24 months

18 months

6 months

21 / 30

Detailed information about a property being listed is contained on its…?

Listing agreement

Measurement document

Legal description

Datasheet

22 / 30

The "income approach" to valuation is most appropriate when used on…?

Commercial or investment property

Waterfront properties

Single detached properties

Condominium property

23 / 30

Personal information about a seller can be included in the advertisement for their property…?

If it does not identify the seller by name

If it will help to sell the property

If the seller has not specifically objected to it

Under no circumstances

24 / 30

Farming in the neighbourhood refers to…?

Trying to get clients away from nearby brokerages

Persuading people to leave a particular area

Looking for agricultural properties in a particular area

Targeting marketing at a particular area

25 / 30

The process of selecting one value estimate from two or more estimates is known as…?

Reconciliation

Recommendation

Re-commiseration

Reconsideration

26 / 30

The placement of open house signs must be…?

Agreed by the seller

Agreed by the buyer

Chosen by the salesperson

In line with local municipality regulations

27 / 30

When calculating time adjustment for comparable valuation, the value is nil if the comparable property being used for valuation was sold within the previous…?

Year

Six months

Month

Three months

28 / 30

If a seller wants all offers presented at a specific date and time, the salesperson/broker should…?

Verbally agree to the instruction

Politely explain the instruction is impossible

Get this instruction in writing

Ignore the instruction

29 / 30

A valuation should focus on the value of a property when used in a way that…?

Produces the greatest return at the time of valuation

Produces the greatest enjoyment of the property available at the time of valuation

Would it be possible if financial circumstances changed

Would be possible if zoning regulations are changed

30 / 30

The "cost approach" to estimating value cannot be used to value…?

Single residential houses

Condominium units

Industrial buildings

Commercial properties

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