Section 4 Practice Exam – Ontario Real Estate

Prepare for your Section 4 Ontario real estate license with this free comprehensive practice exam. This exam covers key topics from section four of the Ontario Real Estate License Program.

#1. What is the primary benefit of a LEED-certified building?

Better location

Lower rent costs

Enhanced corporate image and reduced operating costs

More flexible lease terms

#2. How many days’ notice must a landlord give a tenant to terminate a month-to-month tenancy without cause?

60 days

90 days

30 days

120 days

#3. When must notice be given for the fulfillment of a condition in an agreement?

Within 24 hours of the agreement

After the condition has been waived

Within one week of acceptance

Prior to the time period for the condition expiring

#4. What is the primary benefit of conducting a credit check on a prospective tenant?

To verify their marital status

To confirm their employment history

To check their social media activity

To assess their financial reliability and ability to pay rent

#5. Emily is negotiating a counter offer. What happens if she makes a change to the original offer?

The offer is accepted automatically

The buyer is no longer obligated to the offer

The original offer stands

The offer is void

#6. What document is used to amend an agreement of purchase and sale?

OREA Form 101

OREA Form 130

OREA Form 120

OREA Form 200

#7. What is a common issue found during home inspections?

High property taxes

Structural damage or defects

Title disputes

Neighborhood disputes

#8. How can a salesperson help a seller prepare their home for sale?

By setting a high price

By suggesting needed improvements

By telling them to sell as-is

By ignoring necessary repairs

#9. What is the impact of interest rates on the real estate market?

No impact

Can influence buyer affordability and demand

Only affects commercial properties

Only affects sellers

#10. What type of insurance is typically required for commercial condominium owners?

Personal liability insurance

Automobile insurance

Commercial general liability insurance

Life insurance

#11. Liam is leasing a space in a new office building and wants to ensure that the landlord will complete renovations to improve building accessibility. What should he include in the lease?

A clause about tenant fit-up

A clause about accessibility compliance

A clause about parking restrictions

A clause about rent-free period

#12. What is a material change in a condominium disclosure statement?

A change in the unit owner’s details

A significant change affecting the buyer’s decision

A minor update

A regular maintenance report

#13. When is a real estate transaction considered closed?

When the seller accepts the offer

When the property is appraised

When the buyer makes an offer

When all funds are transferred and the deed is recorded

#14. When can a notice of fulfillment be used?

When a condition is waived

When the agreement is terminated

When an amendment is made

When a condition is fulfilled exactly as in the agreement

#15. What is the purpose of a shared facilities agreement?

To ensure equitable cost-sharing for shared facilities

To divide ownership rights

To separate commercial and residential units

To allocate parking spaces

#16. What is the purpose of a final walk-through?

To finalize the sale price

To measure the property size

To ensure the property is in agreed-upon condition before closing

To celebrate the purchase

#17. What is the purpose of Schedule A in an offer?

To list the buyer’s information

To list the purchase price

To list required clauses and conditions

To list the seller’s information

#18. What is required for a buyer to rescind their agreement of purchase and sale within the cooling-off period?

No notice required

Verbal notice

Court order

Written notice

#19. What is private mortgage insurance (PMI)?

Insurance for the buyer

Insurance for natural disasters

Insurance for the lender if the borrower defaults

Insurance for property damage

#20. What must be included in an amendment to an agreement of purchase and sale?

Both old and new terms

Any terms that need revision

Only old terms

Only new terms

#21. What is a zoning ordinance?

A loan agreement

A regulation that defines how property in specific areas can be used

A home insurance policy

A property tax law

#22. What should be included in a commercial condominium disclosure statement?

Insurance policies

First-year budget and declaration

Personal details of previous owners

Sales history of other units

#23. Lisa included a financing condition in her offer. What does this mean?

The offer is dependent on obtaining a mortgage

The offer is dependent on the seller accepting her price

The offer is dependent on selling her current home

The offer is dependent on a property inspection

#24. What does the Condominium Act regulate?

Landlord-tenant disputes

Creation and governance of condominiums

Sale of detached houses

Rental agreements

#25. What happens if a commercial condominium owner fails to pay their common expenses?

Nothing happens

A lien can be placed on their unit

Their unit is sold at auction

They receive a warning

#26. What is included in a status certificate?

Unit sales history

Owner’s personal details

Developer’s profit margin

Common expense fee statement

#27. James received multiple offers on his property. What should he do to ensure ethical practices?

Accept the highest offer

Select an offer randomly

Disclose the existence of competing offers

Reject all offers

#28. Mia wants to include her refrigerator in the sale. How should this be documented?

In the property description

In the purchase price

In the closing date

In the schedule of the offer

#29. Jessica’s offer was countered by the seller with a higher price. What term should be adjusted in the offer?

Deposit amount

Purchase price

Chattels included

Irrevocable date

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

Amend the original offer

Draft a new offer

Make a copy of the original offer

Prepare a counter offer form

#31. A buyer is interested in a resale condominium. What should they do before finalizing the purchase?

Only inspect the unit

Review the reserve fund study and status certificate

Ask the seller for maintenance records

Ignore the reserve fund status

#32. A buyer asks about the declaration document. What should the salesperson explain?

It is an insurance policy

It outlines individual unit maintenance

It outlines ownership, common expenses, and rules of the condominium

It is a sales contract

#33. Which statement about advertising rental properties is correct?

Advertisements do not need to follow any regulations

Advertisements should focus on the landlord’s preferences

Advertisements can openly discriminate based on marital status

Advertisements must comply with the Ontario Human Rights Code

#34. Laura is negotiating a lease for an office space and wants to ensure that she has enough parking spots for her employees. Where should this be detailed?

The parking details and restrictions

The non-permitted use schedule

The signage clause

The rent calculation

#35. Michael’s offer was accepted with conditions. Who is responsible for fulfilling these conditions?

Both buyer and seller

The real estate agent

The buyer

The seller

#36. In what scenario can the board of directors make rule changes without owner approval?

For minor rules affecting common elements

For increasing common expense fees

For changing the use of a unit

For changes affecting unit interiors

#37. What is the maximum allowable rent increase in a rent-controlled area?

10%

#38. David received a notice for a rent increase of 8% effective in 90 days. Is this notice valid?

No, rent increases require 120 days’ notice

Yes, but only if the tenant agrees

No, the maximum allowable increase is 5%

Yes, as long as it’s within the maximum allowable increase

#39. What is the main benefit of a shared facilities agreement in a mixed-use condominium?

Higher property values

Equitable cost-sharing

Increased privacy

Simplified governance

#40. What should a salesperson do if they suspect a tenant might cause issues?

Encourage the tenant to find another place

Accept the tenant to fill the vacancy

Ignore the suspicion

Advise the landlord to investigate further

#41. What is the purpose of a waiver in a real estate transaction?

To terminate the agreement

To amend the agreement of purchase and sale

To confirm the fulfillment of a condition

To remove a condition from the agreement

#42. A buyer is concerned about the financial health of a condominium. What document should they ask for?

Bylaws

Declaration

Purchase agreement

Status certificate

#43. John is leasing an office space and the landlord includes the electricity charges in the rent. What type of meter arrangement is this?

Master meter with estimated charges

Separate meters for each tenant

Prepaid meter system

Master meter with internal meters

#44. When must a condominium corporation’s reserve fund be used?

For daily operational costs

For marketing activities

For paying owner’s personal bills

For major repairs and replacements

#45. A buyer wants to make changes to their unit that affect common elements. What is required?

Approval from the condominium board and possibly an agreement

No approval needed

Approval from local government

Approval from neighbors

#46. What must a buyer check before making modifications to their commercial condominium unit?

Neighbor’s consent

Developer’s profit margin

Condominium bylaws and rules

Sales contract

#47. A potential buyer asks about the role of the condominium board. How should the salesperson respond?

The board manages individual units

The board handles the day-to-day affairs and governance of the condominium

The board sells units on behalf of owners

The board only sets rules for pets

#48. A buyer’s lawyer requests more time for the title search. What should the salesperson do?

Delay the sale indefinitely

Grant the extension immediately

Consult with the seller for approval

Refuse the request

#49. What is the role of a home appraiser?

To inspect for code violations

To negotiate prices

To provide legal advice

To determine the value of a property

#50. What type of condominium does not include units but has shared common elements?

Freehold – common element

Leasehold

Freehold – standard

Freehold – phased

Finish

Results

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