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Colibri Real Estate Exam|395 Questions with Verified Answers
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Colibri Real Estate Exam|395Questions with Verified Answers
Joe Alpha of ABC Real Estate Corp. has been very successful in buying
houses, fixing them up, and reselling them. He put an advertisement in the
local newspaper seeking investors to help him purchase property and pay for
renovations, promising an excellent return on investment when the
properties sold. Do you think that Joe needs a securities broker-dealer
license? - -No
- Ellie is very regimented. She likes to be in the office by 8 a.m. and be
home by 5:30 p.m. She likes that same precision in her monthly budget—she
wants to know what's coming in and how much she can expect to put into
her IRA. She is a good candidate for a career in real estate sales. - -False
- Phil, a real estate licensee, considers going to work for JJ Realty. Broker
Jana James offers him a 60%-40% split on commission. If JJ Realty takes in
$5,000 total commission on Phil's first sale, what is Phil's split? - -$3,000
- A real estate licensee is more likely to be an employee of his broker. - -
False
- If a broker supervises the real estate activities of an associated licensee,
that licensee CANNOT be considered an independent contractor. - -False
- A real estate licensee who is an independent contractor is paid based on
successful real estate transactions, not on hours worked. - -True
- Generically speaking, a person who, for a fee, sells, lists, leases,
exchanges, negotiates, or otherwise deals in the real estate of others or
represents publicly that they do so. - -Broker
- A business that serves as an intermediary between buyers and sellers
and/or lessees and lessors of real estate. - -Brokerage
- Insurance that protects real estate licensees from liability due to mistakes
or negligence. It does not cover claims related to fraud or discrimination. - -
Errors and Omissions Insurance (E&O)
- Under common law, a person who contracts to do a job for another but
maintains control over how the task will be carried out, rather than following
detailed instructions. - -Independent Contractor
- A person licensed under state law to practice real estate. - -Licensee
,- Any real estate licensee who is a member of the National Association of
REALTORS® (NAR) and his or her affiliated state/local boards. Only members
may use the term REALTOR® as it's a registered trademark of NAR. - -
REALTOR®
- Generically speaking, a real estate licensee agent who is associated with a
broker and as such may perform most of the acts a broker can on behalf of
the broker. Also called Sales Associate. - -Salesperson
- A real estate licensee who is treated as an independent contractor for tax
purposes when specified conditions are met: proper licensing; compensation
based on sales; and services performed under a written contract. - -
Statutory Nonemployee
- In which field do the majority of new licensees begin their work? - -
Residential Sales
- Which is NOT an advantage to a career in real estate sales? - -the option
to double commission percentages during slow months
- Licensee Louie has worked for Rick, the broker at ABC Realty, for 20 years.
Louie has been accused of negligence for not disclosing a material fact to a
buyer. Which statement is TRUE? - -Rick can be held liable for Louie's
misconduct.
- At the end of the year, what tax form will an independent contractor
receive to document their income? - -1099-MISC
- Who could a real estate licensee represent in a real estate transaction?
Select all correct responses. - -Buyers
Landlords
Sellers
Tenants
All are correct
- Steven just successfully finished his required real estate prelicensing
course. Which statement is TRUE? - -Once he joins the NAR, he can call
himself a REALTOR®.
- In order to be considered an independent contractor, a licensee's
compensation must be - -based on sales produced, not hours worked.
, - For a real estate licensee, which is NOT a characteristic that indicates they
are an independent contractor? - -The licensee must be paid for hours spent
in the brokerage office.
- What are the tasks for which a property manager is typically responsible?
Select all correct responses. - -Collecting Rents
Leasing Units
Maintaining Tenant Relationships
Managing the Maintenance and Repair of the Building
All are correct
- The theory of supply and demand states that when supply exceeds
demand, prices will fall. - -True
- Real estate cycles tend to lag somewhat behind general business cycles in
response to supply and demand. - -True
- As the supply of homes in the area rises, what would you expect to happen
to home prices in the short term? - -Home prices will fall slightly from their
high points.
- When Widget moves out, what type of market is Big City likely to
experience? - -Buyer's Market
- Cost inflation can affect new home prices as builders pass along their
higher costs for labor and materials. - -True
- Higher taxes tend to encourage spending and investing. - -False
- P-E-G-S - -Physical
Economic
Government
Social
- A situation in the housing market when there are many homes available
for sale, but few buyers. - -Buyer's Market
- The interest rate that people or businesses must pay to use another's
money for their own purposes. - -Cost of Money
- The main business or industry in an area that supports and sustains the
community. - -Economic Base
- An increase in the cost of goods or services or too many people wanting
too few goods. - -Inflation
, - A characteristic of real property; each piece of land, each building, and
each house is a unique piece of real estate. Also called Uniqueness or
Heterogeneity. - -Non-Homogeneity
- General swings in real estate activity, resulting in increasing or decreasing
activity and property values, during different phases of the cycle. - -Real
Estate Cycles
- A physical characteristic of real property that says there is a limited supply
of real estate; the perceived supply of a good or service relative to the
demand for the item. - -Scarcity
- A situation in the housing market when a large number of buyers are
looking for houses in an area of limited availability. - -Seller's Market
- An economic principle that says that for all products, goods, and services
when supply exceeds demand, prices will fall and when demand exceeds
supply, prices will rise. - -Supply and Demand
- These associates take and approve loan applications, appraise properties,
assess risk. They can find jobs with savings and loan associations, mutual
savings banks, commercial banks, mortgage companies, endowments, and
government agencies. - -Real Estate Finance
- People in this field use rigorous appraisal methods to evaluate property for
financial institutions, developers, property managers, or government
agencies. - -Real Estate Appraisal
- These professionals purchase large tracts of land at a low cost per acre,
then subdivide and improve it with streets, sewers, and utilities so it can be
resold at a higher cost per front foot (for lots) or per square foot (for
buildings). - -Real Estate Development
- People in this area of real estate build homes on contract or speculation.
They might choose to sell, appraise, manage, or help buyers finance the
property. - -Real Estate Property Construction
- This is a growing field. More and more brokers, banks, and lawyers are
getting into this service area as profit margins are shrinking elsewhere. Jobs
can include title researcher, escrow agent, and title insurance overseer. - -
Real Estate Title Work
- There are numerous national, state, and local trade associations that work
to educate, lobby, support members, and manage public relations. - -Real
Estate Trade Association Work
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