Section 4 Practice Exam – Ontario Real Estate - 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 should a salesperson do if a tenant has not signed a representation agreement?

Ignore the representation agreement

Only show properties after signing the lease

Provide services without any agreement

Ask the tenant to sign a representation agreement before providing any services

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

Potential tenant's age

Features and benefits of the unit and nearby amenities

Personal characteristics of the landlord

Exclusions for certain groups of people

#3. What should a salesperson do if a property has an encroachment?

Remove the encroachment

Ignore it

Disclose the encroachment to potential buyers

Lower the property price

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

High property taxes

Title disputes

Neighborhood disputes

Structural damage or defects

#5. What must a landlord provide if they wish to enter the rental unit?

24 hours' notice

48 hours' notice

One week's notice

No notice required

#6. How often must a reserve fund study be updated for a commercial condominium?

Annually

Every five years

Every three years

Every two years

#7. How long does a tenant have to respond to an eviction notice for non-payment of rent?

7 days

10 days

3 days

5 days

#8. What is the function of a status certificate?

Summarizes maintenance activities

Lists the unit owners

Provides details about the financial status and governance of the condominium

Outlines the declaration and bylaws

#9. What is the role of a mutual release in a real estate transaction?

To release parties from the agreement and direct disbursement of deposit

To waive a condition

To confirm fulfillment of conditions

To amend the agreement

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

Major role in attracting buyers

Minor role

Only important for luxury homes

No role

#11. What is the first date to be identified in an offer plan?

Expiry of Conditions

Offer Date

Irrevocable Date

Completion Date

#12. What is a zoning ordinance?

A property tax law

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

A loan agreement

A home insurance policy

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

To allocate parking spaces

To ensure equitable cost-sharing for shared facilities

To divide ownership rights

To separate commercial and residential units

#14. A new owner wants to install hardwood floors in their condominium unit. What should they check first?

The reserve fund status

The declaration for any restrictions

The bylaws for any restrictions

The insurance policy

#15. What should a tenant do if they receive an eviction notice?

Negotiate with the landlord

Ignore the notice

File a response with the court

Move out immediately

#16. What is a primary characteristic of a commercial condominium?

Divided into units owned individually with shared common areas

Always used for residential purposes

Managed by the local government

Owned by a single entity

#17. What can be included in the common elements of a condominium?

Only private units

Owner's personal insurance policies

Personal belongings of owners

Public facilities like gyms and pools

#18. How should a salesperson handle a landlord's request to exclude pets?

Agree without question

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

Exclude pets in all advertisements

Ignore the request

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

By determining buyer and seller leverage

By setting legal requirements

They cannot

By dictating property features

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

Add more conditions

Reject the offer

Change the purchase price

Adjust the completion date

#21. How should a salesperson respond if a buyer finds a significant issue during the home inspection?

Recommend negotiating with the seller for repairs or a price reduction

Offer to fix the issue personally

Suggest canceling the transaction

Advise to ignore it

#22. What is the main purpose of a tenant fit-up?

To decrease the lease term

To increase the rent

To improve the building's energy efficiency

To customize the space according to the tenant's needs

#23. What is an appraisal contingency?

A type of loan

A clause that requires the property to appraise at a certain value

A requirement for home insurance

A condition for home inspection

#24. Who is responsible for calling a turnover meeting in a commercial condominium?

Property manager

Local government

Developer

First unit owner

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

For minor rules affecting common elements

For changing the use of a unit

For increasing common expense fees

For changes affecting unit interiors

#26. What is the primary purpose of the Condominium Authority Tribunal?

To manage condominium sales

To enforce rental agreements

To oversee new condominium construction

To resolve disputes related to condominiums

#27. Alex is buying a property and wants assurance that the appliances are in working order. Where should this be included?

In the purchase price

In the schedule of the offer

In the closing date

In the property description

#28. What is the main difference between commercial and residential condominiums in terms of governance?

Commercial condominiums have more common areas

There is no difference in governance; both fall under the Condominium Act

Different management structures

Different legal frameworks

#29. Who elects the board of directors in a commercial condominium?

Local government

Property manager

Developer

Unit owners

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

Only major renovations

All known renovations

No renovations

Only if the buyer asks

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

Only seller's signature

No signatures required

Both buyer's and seller's signatures

Only buyer's signature

#32. What should a salesperson do if a property is overpriced?

Advise the seller to reduce the price based on market data

Encourage the seller to wait for the right buyer

Ignore it

Increase the marketing efforts

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

When the buyer makes an offer

When all funds are transferred and the deed is recorded

When the property is appraised

When the seller accepts the offer

#34. In what situation can a landlord evict a tenant without notice?

Property damage

None of the above

Non-payment of rent

Illegal activity

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

Sales reports

Lease agreements

Audited financial statements

Marketing materials

#36. What is included in a triple net lease?

Base rent plus maintenance

Base rent plus insurance

Base rent plus property taxes

Base rent plus all operating expenses

#37. How long must brokerages retain documents for a successful transaction?

6 years

1 year

10 years

3 years

#38. What document outlines the specific rules and regulations of a condominium?

Declaration

Disclosure statement

Status certificate

Bylaws

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

Grant the extension immediately

Consult with the seller for approval

Delay the sale indefinitely

Refuse the request

#40. What is a key factor to consider when buying an investment property?

Potential rental income

Age of the property

Personal preference

Color of the property

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

To inform new owners of their insurance responsibilities

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

To outline renovation restrictions

To confirm ownership transfer

#42. What must a salesperson ensure when preparing a lease agreement?

That it is verbally agreed upon

That it favors the landlord only

That it complies with the Residential Tenancies Act and the Ontario Human Rights Code

That it can be changed frequently

#43. Tom is leasing an industrial property and needs to ensure the building can support his heavy equipment. What should he check?

Sprinkler density

Ceiling height

Floor load capacity

Bay size

#44. Who elects the condominium board of directors?

Local government

Property managers

Unit owners

Real estate agents

#45. When must the balance due on closing be amended?

When the deposit changes

None of the above

When the purchase price changes

Both A and B

#46. What is a deed of trust?

A type of property insurance

A document securing a loan with the property as collateral

A document transferring property ownership

A property tax record

#47. Who is responsible for insuring the common elements in a commercial condominium?

Each business owner

Local government

The condominium corporation

Individual unit owners

#48. What is a closing disclosure?

A document that details all costs associated with the sale

A disclosure about property defects

A marketing tool for selling properties

A document that outlines the terms of a loan

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

To sell units on behalf of owners

To handle individual unit repairs

To pay owner's personal bills

To manage the affairs of the corporation

#50. A new condominium owner wants to rent out their unit. What must they check first?

The property manager's opinion

The declaration and bylaws for any restrictions

The local government rules

The condominium board's approval only

Finish

Results

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#1. What should a salesperson do if a tenant has not signed a representation agreement?

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

#3. What should a salesperson do if a property has an encroachment?

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

#5. What must a landlord provide if they wish to enter the rental unit?

#6. How often must a reserve fund study be updated for a commercial condominium?

#7. How long does a tenant have to respond to an eviction notice for non-payment of rent?

#8. What is the function of a status certificate?

#9. What is the role of a mutual release in a real estate transaction?

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

#11. What is the first date to be identified in an offer plan?

#12. What is a zoning ordinance?

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

#14. A new owner wants to install hardwood floors in their condominium unit. What should they check first?

#15. What should a tenant do if they receive an eviction notice?

#16. What is a primary characteristic of a commercial condominium?

#17. What can be included in the common elements of a condominium?

#18. How should a salesperson handle a landlord's request to exclude pets?

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

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

#21. How should a salesperson respond if a buyer finds a significant issue during the home inspection?

#22. What is the main purpose of a tenant fit-up?

#23. What is an appraisal contingency?

#24. Who is responsible for calling a turnover meeting in a commercial condominium?

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

#26. What is the primary purpose of the Condominium Authority Tribunal?

#27. Alex is buying a property and wants assurance that the appliances are in working order. Where should this be included?

#28. What is the main difference between commercial and residential condominiums in terms of governance?

#29. Who elects the board of directors in a commercial condominium?

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

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

#32. What should a salesperson do if a property is overpriced?

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

#34. In what situation can a landlord evict a tenant without notice?

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

#36. What is included in a triple net lease?

#37. How long must brokerages retain documents for a successful transaction?

#38. What document outlines the specific rules and regulations of a condominium?

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

#40. What is a key factor to consider when buying an investment property?

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

#42. What must a salesperson ensure when preparing a lease agreement?

#43. Tom is leasing an industrial property and needs to ensure the building can support his heavy equipment. What should he check?

#44. Who elects the condominium board of directors?

#45. When must the balance due on closing be amended?

#46. What is a deed of trust?

#47. Who is responsible for insuring the common elements in a commercial condominium?

#48. What is a closing disclosure?

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

#50. A new condominium owner wants to rent out their unit. What must they check first?

Results

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