Free practice questions · Course 3
Condominium Transactions Practice Questions
Purchasing condominiums including status certificates, condo fees, and reserve funds. Below are 5 free sample questions from our 200-question Condominium Transactions bank. Each comes with the correct answer and a full explanation.
Question 1 of 5
A buyer visits a pre-construction sales centre and is impressed by the model suite and marketing materials. The salesperson should advise the buyer that which of the following is true about model suites?
- AModel suites often include premium upgrades, designer finishes, and furnishings that are not part of the standard unit, and the buyer should carefully review the purchase agreement specifications
- BThe model suite represents exactly what the buyer's unit will look like, including all upgrades shown
- CModel suites are required by law to match the standard specifications exactly
- DThe furnishings in the model suite are included in the purchase price
Why A is correct
Model suites are a significant marketing element in pre-construction sales. Buyers can be misled by the gap between the model presentation and the standard unit specifications. Salespersons should advise clients to: (1) carefully review the schedule of finishes and specifications in the purchase agreement; (2) understand the difference between standard and upgrade items; (3) get written confirmation of what is included; and (4) budget for any desired upgrades beyond the standard specifications. Disclaimer notices in model suites typically state that finishes may differ from standard specifications.
Question 2 of 5
Chen is a landlord who wants to increase the rent for his tenant's unit. Under the RTA, which of the following correctly describes the notice requirement?
- AChen must provide at least 30 days' written notice of the increase
- BChen can increase the rent at any time by simply telling the tenant verbally
- CChen must provide at least 90 days' written notice using the prescribed N1 form, and the increase cannot exceed the annual guideline unless an above-guideline increase is approved
- DChen must wait for the lease to expire before increasing the rent
Why C is correct
Rent increase procedures are strictly regulated under the RTA: (1) 90 days' written notice using the N1 form; (2) increases limited to the annual guideline (typically 1-3%); (3) no more than one increase per 12-month period; (4) the increase must take effect on the anniversary of the tenancy or the anniversary of the last increase. For newer buildings (first occupied after November 15, 2018), rent control may not apply, allowing market-rate increases, but the 90-day notice requirement still applies. Salespersons should understand these rules when advising landlord and investor clients.
Question 3 of 5
Under Ontario's zoning by-laws, how is a duplex property typically defined?
- AA detached house with two separate kitchens but no separate entrances
- BA residential building containing two self-contained dwelling units, each with its own kitchen, bathroom, and entrance
- CTwo detached houses on the same lot sharing a common driveway
- DA single-family home with a finished basement that could potentially be rented
Why B is correct
Multi-family dwelling classifications in Ontario are important because they determine zoning compliance, building code requirements, and fire safety standards. A duplex (two units), triplex (three units), and fourplex (four units) are all common multi-family residential building types. Each must comply with the zoning by-law, Ontario Building Code, and Ontario Fire Code. The distinction between a legal multi-family dwelling and an illegal conversion is significant — illegal units may not meet safety standards and can result in orders to comply, fines, and insurance issues.
Question 4 of 5
In a new condominium purchase in Ontario, what is the 'interim occupancy' period?
- AThe period during which the builder allows the buyer to live in the unit before the condominium is registered and final closing occurs
- BThe 10-day cooling-off period after receiving the disclosure statement
- CThe period between the pre-delivery inspection and the first anniversary of possession
- DA temporary rental period offered to buyers who cannot secure mortgage financing
Why A is correct
Interim occupancy is a unique aspect of new condominium purchases in Ontario. The building may be substantially complete (allowing residents to move in) before the condominium is registered. During interim occupancy, the buyer occupies the unit and pays interim occupancy fees but does not hold title. Title transfers only at final closing, after the condominium is registered. This period can last months or even years, depending on how long registration takes.
Question 5 of 5
A landlord serves a tenant with an N4 notice for non-payment of rent. The tenant pays all rent owing before the termination date on the notice. What is the legal effect?
- AThe notice is void and the tenancy continues as if the notice was never served
- BThe landlord can still proceed with an eviction application to the LTB despite the payment
- CThe tenant must also pay a penalty fee equal to one month's rent
- DThe notice remains valid and the tenant must vacate by the termination date regardless of payment
Why A is correct
The N4 notice for non-payment of rent has a unique feature under the RTA: it can be voided by the tenant paying all rent owing before the termination date. This differs from other notices of termination, such as N12 (personal use) or N13 (demolition/renovation), which cannot be voided by payment. Salespersons advising landlord clients should understand this distinction.
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