Practice Exam - Ontario Real Estate License - Real Estate

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 must be done when changing the irrevocable in a counter offer?

Insert the new deadline

All of the above

Change the buyer to seller

Initial each change

#2. What does REBBA require for a brokerage in terms of financial management?

Maintaining a separate trust account for client funds

Annual donations to charity

Investing in real estate

Operating without a budget

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

To prevent any fraud in commercial transactions

To regulate the transfer of personal property

To require certain contracts to be in writing to be enforceable

To ensure all contracts are verbal

#4. What is a key factor in valuing a business?

Market conditions

Buyer’s investment

Seller’s profit margins

Seller’s liabilities

#5. Hannah is including a condition for obtaining homeowners insurance in her offer. Where should this be specified?

In the purchase price

In the closing date

In the property description

In the schedule of the offer

#6. What does the Family Law Act primarily address in the context of real estate?

Regulation of commercial property owned by families

Division of property among family members

Inheritance laws for real estate

Taxation benefits for family-owned properties

#7. What is a tenant's right if they discover the rental unit is uninhabitable?

Sue the landlord for damages

Terminate the lease without penalty

Continue living and pay reduced rent

Withhold rent until repairs are made

#8. What information is required in an online property advertisement?

Agent's personal email address

Previous sale price

Brokerage name and contact information

Owner's name

#9. When does an offer become a legally binding contract?

When the real estate agent reviews it

When both parties sign it and all conditions are met

When the seller signs it

When the buyer signs it

#10. What should a potential buyer review to assess the financial health of a commercial condominium?

Reserve fund study and status certificate

Developer's sales history

Property manager's report

Marketing brochure

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

Review the complaint and cooperate with the investigation

Ignore the accusation

Argue with the complainant

Leave the profession

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

Sales techniques

Customer service

Ethics and compliance

Financial management

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

Each business owner

Condominium corporation

Local municipality

Individual unit owners

#14. How should a salesperson advise a buyer when interest rates are expected to rise?

Recommend only adjustable-rate mortgages

Ignore interest rates

Advise them to wait

Suggest locking in a rate quickly

#15. Zoe's landlord is requiring a two-month security deposit. Is this allowed?

Yes, but only if the lease term is more than one year

No, security deposits are not allowed

Yes, landlords can set the security deposit amount

No, the maximum allowed is one month's rent

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

Financial management

Ethics and compliance

Sales techniques

Customer service

#17. What is a key consideration when selling a business?

Finding qualified buyers

Marketing the business

Ensuring proper documentation

Understanding tax implications

Reviewing the business's financial health

#18. What is the consequence of not having a sufficient reserve fund?

Immediate property sale

Mandatory special assessments from owners

Cancellation of common element fees

Reduced property taxes

#19. What is the role of the Condominium Management Regulatory Authority of Ontario?

Issuing building permits

Enforcing rental agreements

Overseeing condominium managers and management companies

Regulating real estate transactions

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

Require public disclosure

Demand a business plan revision

Issue a fine

Provide a compliance advisor

#21. What is the significance of a Record of Site Condition (RSC)?

To describe the building's layout

To list the number of owners

To provide aesthetic details

To certify that the property meets environmental standards

#22. What should be done to ensure clauses are clear and concise?

Group similar clauses

Use vague language

Be precise

Both B and C

#23. What happens if a counter offer is not accepted?

The negotiations continue

The original offer stands

The offer is void

None of the above

#24. What is the first step in making an offer on a property?

Obtain a mortgage pre-approval

Draft the offer with a real estate agent

Schedule a home inspection

Conduct a property appraisal

#25. What is the role of a mortgage broker?

To represent buyers in transactions

To appraise property

To conduct home inspections

To negotiate loan terms between the borrower and lender

#26. Which form is used to identify the fulfillment of a condition in an agreement?

OREA Form 124

OREA Form 140

OREA Form 100

OREA Form 110

#27. A buyer finds a unit they like in a high-rise condominium with shared amenities. What document should they review to understand shared costs?

Shared facilities agreement

Status certificate

Bylaws

Declaration

#28. Under REBBA, what financial practice must brokerages adhere to with respect to client funds?

Invest them

Deposit them into a trust account

Hold them in a non-interest bearing account

Use them for operational expenses

#29. Which of the following best describes a condominium corporation?

A non-legal entity

A legal entity representing collective property interests

A temporary ownership arrangement

An informal group of property owners

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

Accept the tenant to fill the vacancy

Ignore the suspicion

Advise the landlord to investigate further

Encourage the tenant to find another place

#31. In a leasehold condominium, what do purchasers own?

Only the units

Only common elements

Leasehold interest in units and common elements

The land and units

#32. Mary wants to lease a retail space that allows her to pay a fixed minimum rent plus a percentage of her gross sales. What type of lease is this?

Percentage lease

Net lease

Gross lease

Retail ground lease

#33. What is required when an amendment to an agreement is not accepted?

The original terms remain in effect

The buyer must make a new offer

A new agreement must be drafted

The agreement becomes null and void

#34. What is required under REBBA for a brokerage when there is a change in the broker of record?

Place an advertisement in local media

Obtain approval from all clients

Notify RECO within 30 days

Notify RECO within 5 days

#35. Nina wants to ensure the inclusion of all existing light fixtures in her purchase. How should this be documented?

In the schedule of the offer

In the purchase price

In the property description

In the closing date

#36. What should a buyer do if their offer is rejected?

Make a higher offer or look for another property

Withdraw from the market

File a complaint

Wait for the seller to change their mind

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

To ensure all contracts are verbal

To regulate the transfer of personal property

To require certain contracts to be in writing to be enforceable

To prevent any fraud in commercial transactions

#38. What is included in a condominium's common elements?

Personal belongings of owners

Elevators, hallways, and gardens

Only individual units

Private residences

#39. How does the Municipal Act impact real estate salespersons?

It has no impact on real estate salespersons

It determines property taxes and zoning regulations

It governs their licensing and education

It affects how properties within municipalities are marketed

#40. What is a profit and loss statement?

Expense report

Summary of assets

Audit report

Statement of revenues and expenses

#41. Scenario: A salesperson at a brokerage uses misleading advertising despite REBBA's regulations. What could be the consequences?

Fines and mandatory retraining

Public commendation

Mandatory community service

Increase in sales

#42. Chloe wants to include a condition that the property must pass a pest inspection. Where should this be documented?

In the closing date

In the property description

In the purchase price

In the schedule of the offer

#43. What document outlines the rules and regulations of a commercial condominium?

Bylaws

Disclosure statement

Rental agreement

Mortgage agreement

#44. What is an example of a third-party professional a buyer might consult?

Environmental assessor

Accountant

Lawyer

Zoning official

#45. What is the role of curb appeal in selling a property?

Only important for luxury homes

No role

Minor role

Major role in attracting buyers

#46. What is a disciplinary hearing in real estate?

A formal process to review and address complaints against a professional

A training session for new agents

A meeting to increase sales targets

A marketing strategy meeting

#47. What is the purpose of a New Owner Information Certificate (NOIC)?

To provide new owners with the most recent information about the condominium

To confirm ownership transfer

To outline renovation restrictions

To inform new owners of their insurance responsibilities

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

To require certain contracts to be in writing to be enforceable

To ensure all contracts are verbal

To prevent any fraud in commercial transactions

To regulate the transfer of personal property

#49. John made an offer on a property which was countered by the seller. What should John do next if he agrees to the new terms?

Make another counter offer

Reject the offer

Accept the counter offer

Withdraw his offer

#50. What should a salesperson do if a tenant requests modifications to the lease terms?

Ignore the request

Discuss the modifications with the landlord and negotiate accordingly

Agree without consulting the landlord

Immediately reject the request

Finish

Results

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Unfortunately, you did not pass the Practice Ontario Real Estate License Practice Exam this time. Don’t be discouraged; this is an opportunity to identify areas where you need further study and improvement. Review the materials, focus on your weak points, and try again. Your persistence and effort will lead you to success. Keep going!

#1. What must be done when changing the irrevocable in a counter offer?

#2. What does REBBA require for a brokerage in terms of financial management?

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

#4. What is a key factor in valuing a business?

#5. Hannah is including a condition for obtaining homeowners insurance in her offer. Where should this be specified?

#6. What does the Family Law Act primarily address in the context of real estate?

#7. What is a tenant's right if they discover the rental unit is uninhabitable?

#8. What information is required in an online property advertisement?

#9. When does an offer become a legally binding contract?

#10. What should a potential buyer review to assess the financial health of a commercial condominium?

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

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

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

#14. How should a salesperson advise a buyer when interest rates are expected to rise?

#15. Zoe's landlord is requiring a two-month security deposit. Is this allowed?

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

#17. What is a key consideration when selling a business?

#18. What is the consequence of not having a sufficient reserve fund?

#19. What is the role of the Condominium Management Regulatory Authority of Ontario?

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

#21. What is the significance of a Record of Site Condition (RSC)?

#22. What should be done to ensure clauses are clear and concise?

#23. What happens if a counter offer is not accepted?

#24. What is the first step in making an offer on a property?

#25. What is the role of a mortgage broker?

#26. Which form is used to identify the fulfillment of a condition in an agreement?

#27. A buyer finds a unit they like in a high-rise condominium with shared amenities. What document should they review to understand shared costs?

#28. Under REBBA, what financial practice must brokerages adhere to with respect to client funds?

#29. Which of the following best describes a condominium corporation?

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

#31. In a leasehold condominium, what do purchasers own?

#32. Mary wants to lease a retail space that allows her to pay a fixed minimum rent plus a percentage of her gross sales. What type of lease is this?

#33. What is required when an amendment to an agreement is not accepted?

#34. What is required under REBBA for a brokerage when there is a change in the broker of record?

#35. Nina wants to ensure the inclusion of all existing light fixtures in her purchase. How should this be documented?

#36. What should a buyer do if their offer is rejected?

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

#38. What is included in a condominium's common elements?

#39. How does the Municipal Act impact real estate salespersons?

#40. What is a profit and loss statement?

#41. Scenario: A salesperson at a brokerage uses misleading advertising despite REBBA's regulations. What could be the consequences?

#42. Chloe wants to include a condition that the property must pass a pest inspection. Where should this be documented?

#43. What document outlines the rules and regulations of a commercial condominium?

#44. What is an example of a third-party professional a buyer might consult?

#45. What is the role of curb appeal in selling a property?

#46. What is a disciplinary hearing in real estate?

#47. What is the purpose of a New Owner Information Certificate (NOIC)?

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

#49. John made an offer on a property which was countered by the seller. What should John do next if he agrees to the new terms?

#50. What should a salesperson do if a tenant requests modifications to the lease terms?

Results

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