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

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

Services at a percentage of the sale price

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

Various services at a flat fee

Services at a sliding scale depending how quickly the property sells

2 / 30

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

Under no circumstances

Only to attend another open house event

Only to obtain food or other refreshments

If asked to do so by a potential buyer

3 / 30

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

The advertisement must contain the name of the salesperson/broker

The advertisement must identify the registrant who places the advertisement

The advertisement must include the personal telephone number of the registrant

The advertisement must contain the name of the brokerage

4 / 30

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

An exaggerated statement

An inaccurate statement

A false statement

An incomplete statement

5 / 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

6 / 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…?

Three months

Six months

Year

Month

7 / 30

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

Is a standard practice requiring no consent

Can only be done with the seller's consent

Is a forbidden practice

Can only be done with the buyer's consent

8 / 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…?

18 months

24 months

6 months

12 months

9 / 30

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

Legal description

Datasheet

Listing agreement

Measurement document

10 / 30

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

Title/deed and survey

Lot size and living area

Tax and assessment documents

Zoning description

11 / 30

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

Direct them to speak to their own broker/salesperson

Accept the offer directly

Decline the offer

Invite the buyer to become a client of their own brokerage

12 / 30

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

Condominium units

Single residential houses

Commercial properties

Industrial buildings

13 / 30

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

Sales associate

Sales consultant

Sales agent

Any of these

14 / 30

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

REALTOR logo

REALTORS

All of these

REALTOR

15 / 30

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

Books showings for properties

Lists a property as being for sale

Organises open houses

Negotiates offers

16 / 30

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

The prevailing market conditions are a buyer's market

Recent comparable sales are available

A wide range of historical data is available

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

17 / 30

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

Under no circumstances

If the seller has not specifically objected to it

If it does not identify the seller by name

If it will help to sell the property

18 / 30

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

The smallest property on a street

The largest property on a street

The most dilapidated property on a street

A property that is the average size for a street

19 / 30

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

Commercial properties

Special-purpose buildings

Very new properties

Very old properties

20 / 30

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

Answer questions about the property

Place and remove open house signs

Greet visitors to the property

Ask visitors to sign the guest register

21 / 30

A brokerage website must clearly exhibit…?

Salesperson's name

Disclaimers

Contact information

All of these

22 / 30

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

Would be possible if zoning regulations are changed

Produces the greatest return at the time of valuation

Would it be possible if financial circumstances changed

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

23 / 30

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

Condominium property

Waterfront properties

Single detached properties

Commercial or investment property

24 / 30

The placement of open house signs must be…?

Agreed by the buyer

In line with local municipality regulations

Chosen by the salesperson

Agreed by the seller

25 / 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

All of these

The seller's personal circumstances

26 / 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

Ignore the instruction

Get this instruction in writing

27 / 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

Only take photographs of the interior of the property

Remove all furniture from every room

28 / 30

Home staging professionals are used to do what?

Design media listings for a home

All of these

Make a home look more attractive

Cover up obvious defects in a home

29 / 30

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

Reconsideration

Recommendation

Re-commiseration

Reconciliation

30 / 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

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