Section 3 Practice Exam – Ontario Real Estate - Real Estate

Prepare for your Section 3 Ontario real estate license with this free comprehensive practice exam. This exam covers key topics from section three of the Ontario Real Estate License Program.

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

In the property description

In the schedule of the offer

In the closing date

In the purchase price

#2. Who is responsible for providing accurate information about a property?

The seller

The brokerage representing the buyer

The brokerage representing the seller

The buyer

#3. What is the impact of good school districts on property value?

Make it harder to sell

No impact

Increase value

Decrease value

#4. How should a salesperson handle a buyer's request for a property history?

Provide accurate and detailed history

Make up a history

Ignore the request

Redirect the buyer to the seller

#5. How can market trends influence real estate negotiations?

By determining buyer and seller leverage

By setting legal requirements

They cannot

By dictating property features

#6. What is the purpose of a listing agreement?

To list all the properties a buyer is interested in

To provide a legal description of a property

To outline the terms under which a brokerage will represent a seller

To finalize the sale of a property

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

Only seller's signature

No signatures required

Only buyer's signature

Both buyer's and seller's signatures

#8. How should a salesperson handle a buyer who is concerned about property taxes?

Provide information on current and historical tax rates

Suggest the buyer consult a tax advisor

Advise the buyer to choose a different property

Ignore the concern

#9. What is a common contingency in a real estate contract?

Number of bedrooms

Type of flooring

Color of the paint

Financing approval

#10. How can staging affect the sale of a property?

Have no effect

Increase appeal and potential sale price

Decrease interest

Make the property less desirable

#11. What is the best way to market a property in a competitive market?

Highlight unique features

Limit advertising

Ignore market trends

Set a high price

#12. What is a property deed?

A legal document transferring ownership of property

A loan document

A tax record

A document listing property improvements

#13. What should a salesperson do if they suspect a property has lead paint?

Disclose the suspicion to potential buyers

Ignore it

Test for lead paint themselves

Paint over it

#14. Isabella received an offer on her property but is unsure if it's fair. What should she ask her brokerage?

For a market analysis

To reject the offer

To negotiate directly with the buyer

For a higher offer

#15. Tyler wants to ensure that the seller repairs a leaky roof before closing. How should this be included?

As a condition in the offer

In the property description

In the closing date

In the purchase price

#16. What should be done if a deposit cheque bounces?

Ignore the issue

Inform the seller immediately

Replace the cheque with personal funds

Delay the sale until the funds are available

#17. What is the function of a deed?

To list property improvements

To establish zoning regulations

To transfer ownership of property

To calculate property taxes

#18. What is an escalation clause in an offer?

A clause that decreases the offer price

A clause that extends the closing date

A clause that increases the offer price if there are competing offers

A clause that waives the home inspection

#19. What obligations does a salesperson have when handling a property sale with known environmental issues?

Disclose all known issues to all parties

Advise the seller to fix the issues before selling

Only disclose if the buyer asks about environmental concerns

Minimize the issues to facilitate the sale

#20. What happens if the seller makes a counteroffer?

The offer goes to arbitration

The original offer is accepted

The buyer must accept the counteroffer

The original offer is voided and a new offer is created

#21. What is the purpose of title insurance?

To protect against property damage

To protect the buyer and lender from title defects

To increase property value

To lower property taxes

#22. How can a salesperson assist a first-time homebuyer?

By limiting their choices

By ignoring their concerns

By pushing them to buy quickly

By providing detailed guidance throughout the process

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

In the schedule of the offer

In the closing date

In the property description

In the purchase price

#24. What does 'contingent' mean in a real estate listing?

The property sale depends on certain conditions

The property is overpriced

The property is sold

The property is not for sale

#25. What is a contingency in a real estate contract?

An optional clause

A condition that must be met for the contract to be binding

A bonus for the seller

A financing option

#26. Andrew received a counter offer with an adjusted purchase price. What must he ensure is correct before accepting?

Deposit amount

Irrevocable date

New purchase price

Chattels included

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

High property taxes

Neighborhood disputes

Structural damage or defects

Title disputes

#28. How can a salesperson help a seller set the right asking price?

By using a Comparative Market Analysis (CMA)

By setting a price based on seller's debt

By suggesting a high price to leave room for negotiation

By asking the buyer's agent

#29. How does a salesperson ensure they are providing the best service when representing a buyer?

By focusing on the most expensive properties

By understanding and prioritizing the buyer's needs and interests

By minimizing the buyer's concerns to speed up the sale

By showing the buyer as many properties as possible

#30. What is the purpose of the Personal Information Protection and Electronic Documents Act (PIPEDA) in real estate?

To regulate real estate commissions

To protect the buyer's deposit

To ensure personal and confidential information is securely retained and used appropriately

To monitor market conditions

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

To celebrate the purchase

To finalize the sale price

To measure the property size

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

#32. What is a condition precedent?

A condition that must be fulfilled after closing

A condition that has no specific time frame

A condition that must be fulfilled before the agreement becomes binding

A condition that can be waived anytime

#33. What should a salesperson disclose about previous renovations?

Only if the buyer asks

Only major renovations

No renovations

All known renovations

#34. What is a dual agency?

When an agent represents neither party

When two agents represent one buyer

When two agents represent one seller

When one agent represents both buyer and seller

#35. What is the correct course of action for a salesperson if a property has an unpermitted addition?

Advise the seller to disclose the addition to potential buyers

Recommend that the seller obtain retroactive permits

Ignore the issue as it does not affect the property's usability

Encourage the seller to dismantle the addition

#36. When must a buyer provide the deposit after an offer is accepted?

Within 5 business days

Within 24 hours

Within 48 hours

At the time of closing

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

The purchase price is correct

The new irrevocable date is acceptable

The closing date is correct

The deposit amount is unchanged

#38. Rachel is a first-time homebuyer. What should her brokerage provide?

A detailed explanation of the buying process

All of the above

Advice on securing financing

A list of potential properties

#39. What is the primary purpose of an open house?

To appraise the property

To entertain neighbors

To showcase the property to potential buyers

To finalize the sale

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

To determine the value of a property

To inspect for code violations

To provide legal advice

To negotiate prices

#41. What is a common reason for an offer to be conditional?

Buyer's preference for paint color

Real estate agent's recommendation

Seller's request for a higher price

Pending sale of the buyer's current home

#42. What is an adjustable-rate mortgage (ARM)?

A mortgage with a fixed interest rate

A mortgage that does not require a down payment

A mortgage with an interest rate that changes periodically

A mortgage that is interest-free

#43. How should a salesperson handle offers during a multiple offer situation?

Reject all offers

Accept the first offer

Disclose all offers to each buyer

Keep offers confidential

#44. What is the purpose of a home inspection?

To negotiate closing costs

To identify any issues with the property

To increase the sale price

To appraise the property's value

#45. What is the role of a brokerage in a real estate transaction under REBBA?

To inspect properties

To offer legal services

To represent the interests of their clients

To provide financial advice

#46. What is an earnest money deposit?

A payment for property taxes

A payment to cover home inspection costs

A fee for the real estate agent

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

OREA Form 200

OREA Form 130

OREA Form 120

OREA Form 101

#48. What is the impact of high property taxes on property sales?

No impact

Decrease buyer interest

Make properties sell faster

Increase buyer interest

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

Conduct a property appraisal

Draft the offer with a real estate agent

Obtain a mortgage pre-approval

Schedule a home inspection

#50. What is a balloon mortgage?

A mortgage with small initial payments that increase significantly at the end

A mortgage for commercial properties

A mortgage with decreasing payments

A mortgage with no interest

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

#2. Who is responsible for providing accurate information about a property?

#3. What is the impact of good school districts on property value?

#4. How should a salesperson handle a buyer's request for a property history?

#5. How can market trends influence real estate negotiations?

#6. What is the purpose of a listing agreement?

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

#8. How should a salesperson handle a buyer who is concerned about property taxes?

#9. What is a common contingency in a real estate contract?

#10. How can staging affect the sale of a property?

#11. What is the best way to market a property in a competitive market?

#12. What is a property deed?

#13. What should a salesperson do if they suspect a property has lead paint?

#14. Isabella received an offer on her property but is unsure if it's fair. What should she ask her brokerage?

#15. Tyler wants to ensure that the seller repairs a leaky roof before closing. How should this be included?

#16. What should be done if a deposit cheque bounces?

#17. What is the function of a deed?

#18. What is an escalation clause in an offer?

#19. What obligations does a salesperson have when handling a property sale with known environmental issues?

#20. What happens if the seller makes a counteroffer?

#21. What is the purpose of title insurance?

#22. How can a salesperson assist a first-time homebuyer?

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

#24. What does 'contingent' mean in a real estate listing?

#25. What is a contingency in a real estate contract?

#26. Andrew received a counter offer with an adjusted purchase price. What must he ensure is correct before accepting?

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

#28. How can a salesperson help a seller set the right asking price?

#29. How does a salesperson ensure they are providing the best service when representing a buyer?

#30. What is the purpose of the Personal Information Protection and Electronic Documents Act (PIPEDA) in real estate?

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

#32. What is a condition precedent?

#33. What should a salesperson disclose about previous renovations?

#34. What is a dual agency?

#35. What is the correct course of action for a salesperson if a property has an unpermitted addition?

#36. When must a buyer provide the deposit after an offer is accepted?

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

#38. Rachel is a first-time homebuyer. What should her brokerage provide?

#39. What is the primary purpose of an open house?

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

#41. What is a common reason for an offer to be conditional?

#42. What is an adjustable-rate mortgage (ARM)?

#43. How should a salesperson handle offers during a multiple offer situation?

#44. What is the purpose of a home inspection?

#45. What is the role of a brokerage in a real estate transaction under REBBA?

#46. What is an earnest money deposit?

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

#48. What is the impact of high property taxes on property sales?

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

#50. What is a balloon mortgage?

Results

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