module 1

Question 1

CCA

Answer 1

capital cost allowance

Question 2

independent contractor

Answer 2

offers real estate service on behalf that brokerage

Question 3

primary reason for independent contractor status

Answer 3

taxation

Question 4

sheltering

Answer 4

strategy to possibly reduce tax exposure airing form investment

Question 5

material fact

Answer 5

would effect wether or not to buy a specific property

Question 6

capital gain

Answer 6

depreciable property that is added to taxable income

Question 7

authority granted

Answer 7

in the representation agreement is in the BROKERAGE name

Question 8

when a deposit is forfeited 50% is recoverable for the seller

Question 9

income tax act

Answer 9

real estate profit made by a person who regularly buys and sells property

Question 9

income tax act

Answer 9

real estate profit made by a person who regularly buys and sells property

Question 10

mix use

Answer 10

type include both commercial and residential

Question 11

base cost

Answer 11

acquisition price - any allowable adjustment

Question 12

The acquisition price is the price that was actually paid for an asset when it was first acquired by a resident user. It is a synonym for “historic price”

Question 13

brownfield

Answer 13

abandoned contaminated lands in urban location

Question 14

CCA calculation procedure is known as the

Answer 14

declining balance method

Question 15

indemnification clause

Answer 15

commercial representation agreement includes liability resulting form environmental problems

Question 16

construction permit

Answer 16

building permit

Question 17

income tax act rule that

Answer 17

restrict CCA for first year that an asset is purchased half year

Question 18

taxpayer

Answer 18

individual responsible to report a gain to the canada revenue agency as either a capital gain or income

Question 19

unregistered assistance cannot trade in real estate

Question 20

income tax act (acronym for allowable depreciation)

Answer 20

CCA - capital cost allowance

Question 21

provincial policy statements

Answer 21

are issues by the government regarding planning issues

Question 22

non-conforming use

Answer 22

is does not align with the present zoning bylaws

Question 23

gap

Answer 23

LOAN that provides funding between mortgage advances

Question 24

sole proprietorship

Answer 24

unincorporated business owned by one person

Question 25

mortgage documentation package

Answer 25

commercial mortgages

Question 26

blanket

Answer 26

mortgage over two or more properties

Question 27

OBC- Ontario building code

Answer 27

code that sets out minimum standards for building design and constructions

Question 28

adjustment committe

Answer 28

usually authorized to grant small variances form zoning bylaw

Question 29

limited partnership

Answer 29

a passive partner with no control over day to day business of the partnership

Question 30

demollition

Answer 30

complete removal of a structure which could impact current permitted use from zoning perspective

Question 31

upper tier level of a regional government

Question 32

tax liability may fall to the buyer when the seller is non-residential

Question 33

tenant cannot withhold rent if a landlord fails to fulfill their lease obligations

Question 34

mixed use

Answer 34

a building that combines two or more revenue producing use

Question 35

guarantee letter

Answer 35

assuring that funds are in place in the event of developer insolvency

Question 35

guarantee letter

Answer 35

assuring that funds are in place in the event of developer insolvency

Question 36

a lender can reduce risk

Answer 36

by increasing the cap rate , therefore reducing lending value

Question 36

a lender can reduce risk

Answer 36

by increasing the cap rate , therefore reducing lending value

Question 37

coverage ratio is used to

Answer 37

establish if a mortgagor can handle mortgage payment

Question 38

fire protection and occupant are

Answer 38

included in OBC

Question 39

development loan

Answer 39

construction loan