Practice Exam - Ontario Real Estate License - NOW Jimmo

Prepare for your Ontario real estate license with this free comprehensive practice exam. This exam covers key topics from the five main sections of the Ontario Real Estate License Program.

#1. What should be the focus of rental property advertisements?

Features and benefits of the unit and nearby amenities

Personal characteristics of the landlord

Potential tenant’s age

Exclusions for certain groups of people

#2. According to the Planning Act, what is the impact of an official plan on land development?

It sets out legal requirements for land development

It regulates the sale of agricultural lands

It serves only as a guideline with no legal binding

It is concerned with the architectural design of buildings

#3. What is an anchor tenant?

A tenant who occupies the smallest space in a shopping center

A tenant who has exclusive rights to operate in a particular area

A tenant who pays the highest rent in a shopping center

A leading, featured business that occupies a large proportion of the total square footage

#4. What does REBBA regulate regarding brokerage trust accounts?

Handling of client funds

Marketing budgets

Investment strategies

Employee salaries

#5. What must be included in a valid real estate offer?

Buyer’s employment history

Seller’s personal information

Offer price, terms, and conditions

Neighbor’s consent

#6. Lucy is negotiating a lease for a restaurant in a shopping mall. She wants assurance that no other restaurants will open in the same mall. What clause should she include?

Triple net lease clause

Exclusive rights clause

Percentage rent clause

Gross lease clause

#7. What is the role of the board of directors in a condominium corporation?

To pay owner’s personal bills

To manage the affairs of the corporation

To handle individual unit repairs

To sell units on behalf of owners

#8. What information is required in a summary document?

All of the above

Buyer’s name and signature

Date and time the offer was made

Seller’s name and contact information

#9. What should be done if the completion date is too early for the seller?

Change the purchase price

Reject the offer

Adjust the completion date

Add more conditions

#10. What kind of training does REBBA mandate for all registered brokers and salespersons?

Sales techniques

Ethics and compliance

Customer service

Financial management

#11. What is an escrow account used for?

To store real estate contracts

To hold funds related to a real estate transaction

To manage rental properties

To record property taxes

#12. Why is it important to assess transportation routes for commercial properties?

To increase noise levels

To ensure ease of access for employees and customers

To beautify the area

To reduce property value

#13. What should be included in a due diligence checklist for a commercial lease?

Paint colors

Personal preferences of the landlord

Zoning compliance, financial statements, and environmental assessments

Details about local events

#14. Under the Vendors and Purchasers Act, who is responsible for the costs of registering the transfer/deed?

The buyer

The seller

Both the buyer and seller equally

The government

#15. Why is it important to understand the tenant mix in a commercial property?

To increase rental prices

To reduce the number of tenants

To ensure complementary businesses and optimal tenant performance

To avoid lease agreements

#16. Scenario: A couple is divorcing and needs to divide their property. Which legislation provides guidelines for this process?

The Municipal Act

REBBA

The Planning Act

The Family Law Act

#17. Jackson wants to ensure that the property’s fireplace is included in the sale. Where should this be documented?

In the schedule of the offer

In the closing date

In the property description

In the purchase price

#18. How should a salesperson handle a complaint about their professional conduct?

Blame the client

Argue with the complainant

Ignore the complaint

#19. What action should be taken if a real estate advertisement is found to be misleading?

Leave it as is

Ignore the issue

Increase the advertisement’s frequency

Correct the advertisement immediately

#20. Natalie wants to take possession of the property as soon as possible. What term is she looking to adjust?

Closing date

Deposit amount

Irrevocable date

Purchase price

#21. What is required for an amendment to be valid?

Only seller’s signature

Both buyer’s and seller’s signatures

No signatures required

Only buyer’s signature

#22. What should be the first step if a real estate professional is accused of an ethics violation?

Argue with the complainant

Ignore the accusation

Review the complaint and cooperate with the investigation

Leave the profession

#23. What is required of a landlord when adding or modifying a rental unit?

Only verbal approval from neighbors

A building permit and compliance with the Ontario Building Code

Only a written notice to tenants

No special requirements

#24. What should a buyer consider about the term of the lease?

Conditions for lease renewal

Impact of lease terms

Assignment conditions

Remaining term of lease

#25. What is the role of a condominium manager?

To manage the day-to-day operations of the condominium

To represent individual unit owners

To sell condominium units

To handle personal disputes among owners

#26. What is the first step in creating a counter offer?

Make a copy of the original offer

Draft a new offer

Amend the original offer

Prepare a counter offer form

#27. What is the primary purpose of the Statute of Frauds in real estate transactions?

To regulate the transfer of personal property

To ensure all contracts are verbal

To prevent any fraud in commercial transactions

To require certain contracts to be in writing to be enforceable

#28. What information is typically included in a commercial lease agreement?

Employee details

Nearby attractions

Lease terms, rent, and maintenance responsibilities

Paint colors

#29. Ethan is reviewing a counter offer from the seller. What must he ensure?

The chattels are removed

The irrevocable date is unchanged

The deposit is increased

All changes are initialed

#30. What action can RECO take if a brokerage fails to maintain proper records as per REBBA?

Demand a business plan revision

Issue a fine

Provide a compliance advisor

Require public disclosure

#31. Mark’s landlord wants to evict him to move a family member into the unit and gave him a 120-day notice. Is this notice valid?

No, the notice period must be 90 days

Yes, 120 days is the standard notice period

No, the notice period must be 60 days

Yes, but only if the family member moves in within a month

#32. What role does the Electronic Commerce Act play in real estate transactions?

It sets prices for electronic transactions

It governs the use of electronic signatures in contracts

It prohibits electronic agreements

It limits the use of digital marketing

#33. James’s brokerage is preparing a counteroffer on his behalf. What should James ensure?

That the terms reflect his instructions

That the buyer agrees immediately

That the offer is rejected

That the offer is accepted

#34. What should a seller do if they cannot provide financial statements?

Consult a lawyer

Seek buyer’s consent

Delay the sale

Provide an affidavit

#35. Which document is required to terminate a binding agreement?

Only a notice of termination

Both a mutual release and a termination notice

Only a mutual release

An amendment

#36. David is preparing an offer and needs to list key dates. Which of the following is NOT typically included?

Irrevocable date

Requisition date

Offer date

Inspection date

#37. What should a salesperson do if they find inconsistencies in the property documentation?

Report to the authorities

Clarify and resolve the inconsistencies before proceeding

Hide the inconsistencies

Ignore them

#38. What is the significance of a profit and loss statement for a buyer?

Forecast future earnings

Assess financial health

Evaluate investment

Determine profitability

#39. What should a buyer review to understand the financial health of a commercial condominium?

Bylaws

Status certificate

Insurance policy

Declaration

#40. What is a possible outcome of repeated ethical violations by a real estate professional?

License suspension or revocation

Increased sales

Professional recognition

Higher commission rates

#41. Why is due diligence critical in commercial transactions?

To reduce paperwork

To understand financial, legal, structural, and environmental considerations

To avoid client meetings

To increase property value

#42. Who is responsible for maintaining common elements in a condominium?

Local municipality

The government

The condominium corporation

Individual owners

#43. How should a salesperson handle a landlord’s request to exclude pets?

Explain that service animals cannot be excluded under the Ontario Human Rights Code

Exclude pets in all advertisements

Ignore the request

Agree without question

#44. What must be included in all real estate advertisements?

Agent’s personal phone number

Owner’s name

Brokerage name

Previous owner’s details

#45. Grace received a counter offer that changes the irrevocable date. What must she ensure before accepting?

The deposit amount is unchanged

The new irrevocable date is acceptable

The purchase price is correct

The closing date is correct

#46. What is a common element in the sale of a business?

Financial statements

Inventory

Marketing plan

Lease agreement

#47. What must a declarant deliver within 60 days of the turnover meeting?

Sales reports

Marketing materials

Lease agreements

Audited financial statements

#48. What is the legal requirement for a landlord to provide heat in a rental unit?

Heat must be available from November 1 to March 31

Heat must be available upon tenant’s request

Heat must be available year-round

Heat must be available from October 1 to April 30

#49. Who must ensure compliance with REBBA within a brokerage?

The broker of record

Municipal government

All salespersons individually

External auditors

#50. Who must approve changes to exclusive use common elements?

No approval needed

Any owner

The condominium board

Local government

Finish

Results

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Practice Exam – Ontario Real Estate License