Property research, land use and property quality for the Practice of Commercial Real Estate (PCRE) exam: property types, research and documents, market analysis, land use approvals, environmental issues, title and legal descriptions. These are original study notes for practice questions, not RECA material. Legal points are based on the Municipal Government Act, the Land Titles Act and the Real Estate Act Rules in force on 1 January 2027; thresholds, periods and amounts can change: check the current text.
1. When the structure of a commercial building is designed, what is meant by its dead load?
A dead load is the permanent, static weight of the building's own structure and fixed components, such as floors, walls and roofing (PCRE blueprint 4.1.15, which asks candidates to differentiate a live load from a dead load). The weight of occupants, furniture and stored goods is a live load, which changes with use; wind and snow are environmental loads that vary over time; and the greatest weight a floor can bear before failing is its ultimate capacity, not a type of load.
2. What does a floor area ratio (FAR) compare?
A floor area ratio is a building's total floor area divided by the area of its lot, so a ratio of 2.0 on a 20,000 sq. ft. lot allows 40,000 sq. ft. of floor area (PCRE blueprint 4.1.17). Comparing rentable and usable area gives the R/U factor, stalls to leasable area gives a parking ratio, and footprint to lot area is site coverage.
3. What is a purpose-built multi-family rental property?
A purpose-built multi-family property is a building designed and built specifically to house tenants (PCRE blueprint 4.1.9). Rented condominium units and converted houses belong to the secondary rental market because they were not built as rental buildings, and a building with shops below and offices above is a mixed-use property.
4. On a new commercial building project, what does the commissioning process involve?
Commissioning is the quality-assurance process in which the building's systems, such as heating, ventilation, electrical, plumbing and life safety systems, are tested, verified and documented to confirm that they perform as designed (PCRE blueprint 4.1.15). Inviting sealed prices from contractors is the bid process, a development permit is a land use approval obtained before development begins, and measuring premises to a BOMA standard establishes areas rather than confirming how the systems perform.
5. In the office building classification system, how is a Class A building described?
Office buildings are commonly sorted into Classes A, B and C by quality, location and rents (PCRE blueprint 4.1.5), and Class A is the top tier. The older building with dated systems and the solid mid-range building describe the lower classes, and owner occupancy is not a class at all.
6. A development authority refuses a development permit for a restaurant on a lot. What may the land use bylaw provide under section 640(5) of the Municipal Government Act?
Section 640(5) of the Municipal Government Act lets a land use bylaw provide that, after a refusal, another application for a development permit for the same or a similar use on the same lot, or for a change in land use designation, may not be made by the same or any other applicant until the time stated in the bylaw has expired. Having council decide a permit application is a feature of direct control districts under s. 641(3), not of s. 640(5), and the subsection does not require rezoning or let a refusal lapse when a new tenant moves in.
7. A landlord's proposed retail addition does not meet a setback in the land use bylaw. Under section 640(6) of the Municipal Government Act, the bylaw may still let the development authority approve it if, in the authority's opinion, the addition meets which condition?
Section 640(6) of the Municipal Government Act lets a land use bylaw authorize the development authority to decide on a development that does not comply with the bylaw if, in its opinion, the development would not unduly interfere with the amenities of the neighbourhood or materially interfere with or affect the use, enjoyment or value of neighbouring parcels, and it conforms with the use prescribed for that land or building. Neighbour consent and a council resolution after a public hearing are not conditions of s. 640(6), and the test is that neighbouring values are not materially affected, not that they rise.
8. A development authority refuses an application for a development permit for a car wash on a commercial lot. Under section 642 of the Municipal Government Act, what must the authority issue to the applicant?
Section 642(4) requires the development authority to issue a notice, in the form and manner provided for in the land use bylaw, that the application has been refused, and to give the reasons for the refusal. Under s. 642(3) the decision must also be in writing. The section does not provide for refunds, alternative parcels or conditional permits.
9. A tenant client wants to open a fitness studio in a commercial district where the land use bylaw lists fitness studios as a discretionary use. What should the licensee explain?
Under section 642(2) of the Municipal Government Act, for a discretionary use the development authority may issue a development permit with or without conditions, so approval is not assured. The must-issue duty in s. 642(1) applies to permitted uses where the application conforms and is complete. A discretionary use is already provided for in the bylaw, so rezoning is not needed, but a development permit is still required.
10. A pharmacy is a lawful non-conforming use on the ground floor of a two-storey building. The owner wants to extend the use to the vacant second floor and also add a rear extension to the building. What is the result?
Section 643(3) of the Municipal Government Act lets a non-conforming use of part of a building be extended throughout the building, but the building may not be enlarged or added to and no structural alterations may be made. The rear extension is therefore refused. The rule that a use may not move to other parts applies to a part of a lot under s. 643(4), not to the interior of a building.
11. A buyer client is purchasing a vacant commercial lot with a development permit for a restaurant issued two years ago; construction never started. Under the Municipal Government Act, what determines how long the permit remains in effect?
(MGA current as of September 1, 2026) Under section 640(2)(c)(v) of the Municipal Government Act, the land use bylaw must provide how long any type of development permit remains in effect, so the licensee has the buyer check the bylaw and the permit before relying on it. The Act sets no 6-month expiry for permits (the 6-month period in s. 643(2) concerns a discontinued non-conforming use), nothing in it ends a permit on a sale, and s. 643(1), which keeps a permit in effect when a new bylaw comes into force, does not make a permit last indefinitely.
12. A commercial buyer client's site lies in a direct control district, and the planned drive-through restaurant is not listed as a use anywhere in the land use bylaw for that area. Under the Municipal Government Act, what should the licensee explain?
Under section 641 of the Municipal Government Act, council may designate a direct control district and, subject to any applicable statutory plan, regulate and control the use or development of land and buildings there in any manner it considers necessary; under s. 641(3) it may decide a permit application itself or delegate the decision with directions. Section 640(2)(b) requires permitted and discretionary uses to be prescribed unless the district is a direct control district, so an unlisted use is not automatically barred, and neither a duty to issue nor a role for the Minister arises.
13. A licensee represents a buyer of a commercial office building. The seller's certified test showed 380 Bq/m3 and the seller has not performed remediation. The buyer is still interested. What is the best step?
RECA's radon checklist for commercial buyers says that when levels are 200 Bq/m3 or higher and the seller has not performed remediation, the licensee informs the buyer and asks how to proceed. If the buyer is still interested, the licensee discusses obtaining a remediation cost estimate and addressing it in the offer by reducing the purchase price or making the offer subject to a holdback. Advice that no remediation is required applies at 150 Bq/m3 or less. (RECA checklist, 2020)
14. A buyer client plans to convert a leased office suite into a child-care centre with no construction. The seller says no permit is needed because nothing will be built. What is accurate?
Under section 616 of the Municipal Government Act, development includes a change of use of land or a building, and section 683 says that, except as otherwise provided in a land use bylaw, a person may not commence any development without a development permit. The lack of construction therefore does not remove the need for one. A building permit deals with construction standards and an occupancy permit with occupying the premises; neither replaces the development permit under the land use bylaw.
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