Free Course 3 Practice Questions (Ontario Real Estate)

Course 3 takes you into the residential work that trips up new salespeople: condominiums and status certificates, new construction and the Tarion warranty, rural properties with wells and private lanes, multi-unit buildings, and residential leasing under the Residential Tenancies Act. The 10 questions below are original scenario questions written for the Ontario salesperson program. Each one has four plausible options, and every option is explained, including the wrong ones and why a careful student might pick them. Try each question before you look at the answer.

How to use these questions

Commit to an answer before you open the explanation, even when you are unsure. Then read every explanation, including on the questions you got right, because the wrong options are built around the mistakes students actually make. If you would rather track your answers, open the same 10 questions in the app, where your progress is saved.

Question 1

A buyer's lawyer requested a status certificate and paid the corporation's fee on the 2nd of the month. The corporation delivers the certificate on the 14th and invoices an additional 'complex file' charge, explaining that the unit's file was unusually complicated. Under the Condominium Act, 1998, which statement is correct?

aThe extra charge is not permitted under s. 76(2), but delivery was on time because the 10 days in s. 76(3) run from the board's approval of the certificate.bThe delivery was late under s. 76(3), but s. 76(2) lets the corporation recover its actual costs for a complicated file on top of the prescribed fee.cBoth the delivery date and the extra charge are outside the Act, which allows 10 days from the request and fee being received and permits only the prescribed fee.dBoth the delivery date and the extra charge are outside the Act, which allows five business days from the request and permits no fee at all for a resale unit.

Question 2

A buyer wants vacant possession for their own use, but the tenant is six months into a one-year fixed-term lease. The most accurate advice is that:

aAn N12 cannot override the active fixed term; it takes effect only at the term's end, unless the tenant agrees otherwise.bThe tenant must move out at closing, since the completed sale overrides the remaining fixed term.cServing the N12 right away shortens the active fixed term down to the 60-day notice period.dThe fixed-term lease terminates on its own the day the property changes hands to the buyer.

Question 3

A seller's status certificate shows monthly common expenses of $412, covering building insurance, heat and water, with hydro billed separately to the unit. The seller asks the salesperson to advertise the unit as '$412 a month, all utilities included' because it reads better. What should the salesperson do?

aAdvertise '$412 a month, all utilities included' as instructed, since the seller is the client and the salesperson follows the client's lawful marketing instructions.bAdvertise '$412 a month including heat and water' and state plainly that hydro is billed separately to the unit, exactly as the status certificate shows.cAdvertise '$412 a month including heat and water' and describe the separate hydro cost as 'minimal', so the extra bill does not put buyers off the unit.dAdvertise '$412 a month, all utilities included' with the words 'buyer to verify', so that confirming what the fee covers becomes the buyer's responsibility.

Question 4

An agreement to lease records a one-year term from June 1 to May 31 of the following year. The landlord asks the salesperson to add 'the tenant must vacate the unit on May 31,' explaining that he wants the unit back for his daughter after the year. Which statement is most accurate?

aThe clause is enforceable, because s. 48 of the RTA allows a landlord to recover a unit for a child's use and s. 37 allows a tenancy to end by agreement, so the clause records both in advance.bThe clause is unnecessary rather than void, because under s. 38 of the RTA a fixed-term tenancy ends on its last day unless the landlord offers a renewal, which the parties may record.cThe clause is void under ss. 4 and 37 of the RTA, because an agreement to end the tenancy made at the outset is void and s. 38 continues an unrenewed fixed term as a monthly tenancy.dThe clause is enforceable, because s. 38 of the RTA is a default rule that applies only where the agreement is silent about the end of the fixed term, and s. 4 does not reach agreed end dates.

Question 5

A fourplex has a gross potential rental income of $128,400. The salesperson allows 5% for vacancy and bad debt, and annual operating expenses are $41,980 (excluding any mortgage). Using a 6.5% capitalization rate, the estimated value (to the nearest dollar) is approximately:

a$1,876,615.b$1,975,385.c$12,308.d$1,230,769.

Question 6

A buyer's lawyer reviews the status certificate and finds it fully satisfactory, so the buyer wants to firm up the deal. Which instrument fits, and which would fit if instead the certificate showed a problem the buyer accepted anyway?

aA notice of fulfilment fits both situations, since the buyer is proceeding in each case.bA waiver fits both of these situations, because any removal of a condition from an agreement is always treated as a waiver in practice.cA notice of fulfilment fits the satisfactory certificate, while a waiver would fit if the buyer chose to proceed despite a problem.dA waiver fits the satisfactory certificate, and a notice of fulfilment fits proceeding despite a problem.

Question 7

A buyer's offer on a rural home is conditional on satisfactory water potability. The condition was drafted to expire two days after acceptance, but the laboratory's bacterial test takes five business days to report. The seller is reluctant to grant more time. What does this situation show about drafting the condition?

aThe deadline should have been set to the laboratory's turnaround; the parties now need a signed amendment extending the condition.bThe deadline should have been tied to delivery of the sample rather than the result; a notice of fulfilment can then be signed once the laboratory confirms receipt.cThe condition should have referred to the seller's existing test, with a seller's declaration that nothing has changed standing in for a new result.dThe condition should have been drafted as a seller's warranty of potability surviving closing, so that no deadline would have been needed at all.

Question 8

Eighteen months after taking possession of a new freehold home, an owner discovers water penetrating through an exterior wall during heavy rain. How should a salesperson characterize the warranty position?

aNot covered, because all coverage ends thirty days after possession.bCovered only if it rises to a major structural defect.cExcluded, because the home is freehold, not condominium.dLikely covered; water penetration is a two-year item, still live at eighteen months.

Question 9

A landlord raised a tenant's rent eight months ago and now wants to raise it again by the guideline because property taxes went up. Under the RTA, the landlord:

aMay raise it now, because a tax increase is an automatic exception to the timing rule.bMay raise it now with 90 days' notice, since the new amount is only the guideline.cMay raise it after six months, which is the minimum gap between increases.dMust wait until at least 12 months have passed since the last increase before raising the rent again.

Question 10

A salesperson explains what happens when an owner defaults on a leased unit's common expenses. Each statement is accurate EXCEPT one. Which statement is NOT accurate?

aA tenant who pays the corporation is not in default of the lease for doing so.bThe corporation may give the tenant written notice to pay rent to the corporation.cThe corporation may make the tenant pay the entire arrears.dThe payment the tenant makes to the corporation counts as rent under the lease.

What the full Course 3 practice includes

The full Course 3 practice has hundreds of original scenario questions across all nine modules, each with every option explained. You also get Study notes for every module, a timed Mock Exam, Drill Wrong Answers to send you back to the questions you missed, and an AI Tutor that answers your questions about the material. Access lasts two months for a one-time price of $42.99.

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Topics in Course 3

Introducing residential condominiums: ownership, governance, the reserve fund and the status certificate
Preparing to sell residential condominiums: listing, pricing and disclosure (material facts and latent defects)
Completing agreements of purchase and sale for condominiums: conditions, waivers and notices of fulfilment
Transactions involving new construction: builders, deposits, holdbacks and the new-home warranty
Transactions involving rural properties: wells, septic systems, access and waterfront (latent and patent defects)
Transactions involving residential multi-unit dwellings: income, cap rate and tenanted sales
Preparing to lease residential real properties: the Residential Tenancies Act, rent, deposits and notices such as the N4
Preparing to lease residential condominiums: leasing rules and the corporation's rights
Completing agreements to lease for residential tenancies: the agreement, clauses and amendments

For a study plan, see how to study Course 3.

Frequently asked questions

Are these real exam questions?

No. They are original questions written for the Ontario salesperson program. ExamPass is not affiliated with RECO, Meazure Learning or any education provider. The format and the judgment style mirror the real exam, so they are good practice for how the exam asks.

Which provider is this for?

All of them. All four approved providers teach the same program, and students write the same standardized exam, so these questions fit whichever provider you study with.

How many free questions are there?

Ten for Course 3, all on this page with full explanations. With a free account you can also Try For Free inside the app, where your answers are tracked.

What happens when I unlock Course 3?

You get the full Course 3 practice for two months: hundreds of questions, the Study notes, the Mock Exam, Drill Wrong Answers and the AI Tutor. Any answers you gave in Try For Free stay in your progress.