Mastering TOEIC Reading: Practice Test for Real Estate Rental Agreements

TOEIC Reading Practice Test: Understanding Real Estate Rental Agreements for Businesses

Part 1: Incomplete Sentences

1. The commercial lease agreement __ the terms and conditions for renting office space.
   A. outlines
   B. outlining
   C. outlined
   D. to outline

2. Tenants are required to pay a security __ before moving in.
   A. deposited
   B. deposit
   C. depositing
   D. deposits

3. The landlord must provide __ notice before entering the premises for inspections.
   A. advance
   B. advanced
   C. advancing
   D. advances

4. The lease term is __ for five years with an option to renew.
   A. set
   B. setting
   C. sets
   D. to set

5. Rent payments are due on the first day of each month, __ otherwise specified.
   A. unless
   B. except
   C. but
   D. although

6. The tenant is responsible for __ all utilities, including water and electricity.
   A. pay
   B. paid
   C. paying
   D. to pay

7. Any __ to the property must be approved by the landlord in writing.
   A. modifications
   B. modifies
   C. modifying
   D. modified

8. The agreement __ early termination fees if the tenant breaks the lease.
   A. stipulates
   B. stipulating
   C. stipulated
   D. to stipulate

9. Subletting is __ without prior written consent from the property owner.
   A. prohibit
   B. prohibited
   C. prohibiting
   D. to prohibit

10. The tenant must maintain adequate insurance __ throughout the lease term.
    A. cover
    B. covers
    C. covering
    D. coverage

11. Regular property maintenance is the __ of the landlord, as outlined in the agreement.
    A. responsible
    B. responsibility
    C. responsive
    D. respond

12. The lease includes a __ clause for annual rent increases based on the Consumer Price Index.
    A. escalation
    B. escalate
    C. escalating
    D. escalated

13. Any disputes arising from the lease shall be __ through mediation before litigation.
    A. resolve
    B. resolving
    C. resolved
    D. to resolve

14. The tenant must comply with all __ zoning laws and regulations.
    A. applicable
    B. applying
    C. applied
    D. application

15. Failure to pay rent on time may result in __ fees as specified in the agreement.
    A. late
    B. lately
    C. later
    D. lateness

16. The property’s __ use is restricted to office and retail purposes only.
    A. permit
    B. permitted
    C. permitting
    D. permission

17. Both parties must sign and __ the lease agreement for it to be legally binding.
    A. date
    B. dated
    C. dating
    D. to date

18. The tenant is required to maintain the premises in a __ condition throughout the tenancy.
    A. good
    B. well
    C. better
    D. best

19. Any __ of the lease terms may lead to eviction proceedings.
    A. breach
    B. breached
    C. breaching
    D. breaches

20. The landlord reserves the right to __ the property for sale with proper notice.
    A. list
    B. listing
    C. listed
    D. to list

21. Rent payments must be made by __ transfer or certified check.
    A. bank
    B. banking
    C. banked
    D. banks

22. The tenant shall not __ in any illegal activities on the premises.
    A. engage
    B. engaging
    C. engaged
    D. to engage

23. The agreement includes a __ describing the condition of the property at the start of the lease.
    A. inventory
    B. inventoried
    C. inventorying
    D. inventories

24. Any __ to the lease must be made in writing and signed by both parties.
    A. amend
    B. amending
    C. amended
    D. amendments

25. The tenant is responsible for obtaining all necessary __ for their business operations.
    A. license
    B. licensed
    C. licenses
    D. licensing

26. The landlord must provide __ access to common areas as specified in the lease.
    A. reason
    B. reasoned
    C. reasoning
    D. reasonable

27. The tenant shall not __ any hazardous materials on the property without proper authorization.
    A. store
    B. storing
    C. stored
    D. stores

28. The lease agreement __ the process for handling maintenance requests and repairs.
    A. detail
    B. details
    C. detailed
    D. detailing

29. Both parties agree to __ by all terms and conditions set forth in the lease.
    A. abide
    B. abiding
    C. abided
    D. to abide

30. The tenant must provide written notice of their intent to __ the lease 90 days before expiration.
    A. renew
    B. renewed
    C. renewing
    D. renewal

TOEIC Reading Practice Test: Real Estate Rental Agreements

Part 2: Text Completion

Text 1

Commercial real estate leases are complex documents that require careful review. When negotiating a lease, tenants should pay close attention to the (31) __ clauses. The base rent is typically calculated on a per-square-foot basis, but tenants must also consider (32) __ expenses such as property taxes and insurance. Many leases include a (33) __ provision, allowing the landlord to increase rent annually. It’s crucial to understand the (34) __ obligations, including who is responsible for repairs and maintenance of the property.

31. A. financial
    B. social
    C. environmental
    D. political

32. A. additional
    B. subtracted
    C. multiplied
    D. divided

33. A. deflation
    B. inflation
    C. stagnation
    D. recession

34. A. tenant’s
    B. landlord’s
    C. government’s
    D. bank’s

Text 2

The length of a commercial lease can vary significantly. Short-term leases offer (35) __, but may come with higher rent rates. Long-term leases often provide more (36) __ rates but require a bigger commitment. Many tenants prefer to negotiate (37) __ options, which allow them to extend the lease under predetermined terms. It’s also important to consider the (38) __ clause, which outlines the conditions under which either party can terminate the lease early.

35. A. flexibility
    B. rigidity
    C. complexity
    D. simplicity

36. A. expensive
    B. luxurious
    C. favorable
    D. unfavorable

37. A. exit
    B. renewal
    C. purchase
    D. sublease

38. A. entry
    B. extension
    C. termination
    D. continuation

Text 3

When reviewing a commercial lease, it’s essential to understand the different types of leases available. A (39) __ lease requires tenants to pay a base rent plus a percentage of their gross income. In a (40) __ lease, the tenant is responsible for all operating expenses in addition to the base rent. A (41) __ lease falls between these two, with the tenant paying base rent plus a portion of the property’s operating expenses. Each type has its own advantages and (42) __, and the choice depends on the specific needs of the business.

39. A. percentage
    B. fixed
    C. variable
    D. incremental

40. A. partial
    B. shared
    C. divided
    D. triple net

41. A. modified gross
    B. net net
    C. absolute net
    D. double net

42. A. benefits
    B. drawbacks
    C. profits
    D. losses

Text 4

The (43) __ of a commercial property is a crucial factor in any lease negotiation. Tenants should consider the proximity to customers, suppliers, and employees. The lease should clearly define the (44) __ use of the property, ensuring that the tenant’s intended business activities are permitted. Many leases include an (45) __ clause, which prevents the landlord from leasing nearby spaces to direct competitors. Lastly, tenants should carefully review the (46) __ requirements, which outline their responsibilities at the end of the lease term.

43. A. size
    B. color
    C. location
    D. shape

44. A. permitted
    B. prohibited
    C. suggested
    D. recommended

45. A. inclusion
    B. exclusion
    C. collusion
    D. illusion

46. A. entry
    B. occupancy
    C. vacancy
    D. surrender

Answer Keys

Part 1: Incomplete Sentences

1. A
2. B
3. A
4. A
5. A
6. C
7. A
8. A
9. B
10. D
11. B
12. A
13. C
14. A
15. A
16. B
17. A
18. A
19. A
20. A
21. A
22. A
23. A
24. D
25. C
26. D
27. A
28. B
29. A
30. A

Part 2: Text Completion

31. A
32. A
33. B
34. A
35. A
36. C
37. B
38. C
39. A
40. D
41. A
42. B
43. C
44. A
45. B
46. D

TOEIC Reading Comprehension: Real Estate Agreements

This TOEIC Reading Practice Test focuses on understanding real estate rental agreements for businesses, covering key aspects such as lease terms, financial obligations, property maintenance, and legal considerations. The test is designed to assess your comprehension of complex business vocabulary and grammatical structures commonly found in commercial lease agreements. By practicing with these questions, test-takers can improve their ability to interpret and analyze detailed contractual language, which is essential for success in the TOEIC Reading section.