Colibri Real Estate Final Exam Study
Review question and 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
answer ✅
sold. Do you think that Joe needs a securities broker-dealer license? - correct
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
good candidate for a career in real estate sales. - correct answer ✅
know what's coming in and how much she can expect to put into her IRA. She is a
False
Phil, a real estate licensee, considers going to work for JJ Realty. Broker Jana James
commission on Phil's first sale, what is Phil's split? - correct answer✅
offers him a 60%-40% split on commission. If JJ Realty takes in $5,000 total
$3,000
answer ✅
A real estate licensee is more likely to be an employee of his broker. - correct
False
If a broker supervises the real estate activities of an associated licensee, that
✅
licensee CANNOT be considered an independent contractor. - correct answer
False
A real estate licensee who is an independent contractor is paid based on
successful real estate transactions, not on hours worked. - correct answer ✅ True
,Colibri Real Estate Final Exam Study
Review question and answers
Generically speaking, a person who, for a fee, sells, lists, leases, exchanges,
that they do so. - correct answer ✅
negotiates, or otherwise deals in the real estate of others or represents publicly
Broker
lessees and lessors of real estate. - correct answer✅
A business that serves as an intermediary between buyers and sellers and/or
Brokerage
Insurance that protects real estate licensees from liability due to mistakes or
answer ✅
negligence. It does not cover claims related to fraud or discrimination. - correct
Errors and Omissions Insurance (E&O)
Under common law, a person who contracts to do a job for another but maintains
instructions. - correct answer ✅
control over how the task will be carried out, rather than following detailed
Independent Contractor
✅
A person licensed under state law to practice real estate. - correct answer
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. - correct answer
REALTOR®
Generically speaking, a real estate licensee agent who is associated with a broker
Also called Sales Associate. - correct answer ✅
and as such may perform most of the acts a broker can on behalf of the broker.
Salesperson
,Colibri Real Estate Final Exam Study
Review question and answers
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. - correct answer
Statutory Nonemployee
✅
In which field do the majority of new licensees begin their work? - correct answer
Residential Sales
✅
Which is NOT an advantage to a career in real estate sales? - correct answer
the option to double commission percentages during slow months
Licensee Louie has worked for Rick, the broker at ABC Realty, for 20 years. Louie
statement is TRUE? - correct answer
misconduct.
✅
has been accused of negligence for not disclosing a material fact to a buyer. Which
Rick can be held liable for Louie's
document their income? - correct answer ✅
At the end of the year, what tax form will an independent contractor receive to
1099-MISC
correct responses. - correct answer ✅
Who could a real estate licensee represent in a real estate transaction? Select all
Buyers
Landlords
Sellers
Tenants
All are correct
, Colibri Real Estate Final Exam Study
Review question and answers
Which statement is TRUE? - correct answer
himself a REALTOR®.
✅
Steven just successfully finished his required real estate prelicensing course.
Once he joins the NAR, he can call
must be - correct answer ✅
In order to be considered an independent contractor, a licensee's compensation
based on sales produced, not hours worked.
independent contractor? - correct answer
spent in the brokerage office.
✅
For a real estate licensee, which is NOT a characteristic that indicates they are an
The licensee must be paid for hours
all correct responses. - correct answer✅
What are the tasks for which a property manager is typically responsible? Select
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. - correct answer True
response to supply and demand. - correct answer ✅
Real estate cycles tend to lag somewhat behind general business cycles in
True
Review question and 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
answer ✅
sold. Do you think that Joe needs a securities broker-dealer license? - correct
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
good candidate for a career in real estate sales. - correct answer ✅
know what's coming in and how much she can expect to put into her IRA. She is a
False
Phil, a real estate licensee, considers going to work for JJ Realty. Broker Jana James
commission on Phil's first sale, what is Phil's split? - correct answer✅
offers him a 60%-40% split on commission. If JJ Realty takes in $5,000 total
$3,000
answer ✅
A real estate licensee is more likely to be an employee of his broker. - correct
False
If a broker supervises the real estate activities of an associated licensee, that
✅
licensee CANNOT be considered an independent contractor. - correct answer
False
A real estate licensee who is an independent contractor is paid based on
successful real estate transactions, not on hours worked. - correct answer ✅ True
,Colibri Real Estate Final Exam Study
Review question and answers
Generically speaking, a person who, for a fee, sells, lists, leases, exchanges,
that they do so. - correct answer ✅
negotiates, or otherwise deals in the real estate of others or represents publicly
Broker
lessees and lessors of real estate. - correct answer✅
A business that serves as an intermediary between buyers and sellers and/or
Brokerage
Insurance that protects real estate licensees from liability due to mistakes or
answer ✅
negligence. It does not cover claims related to fraud or discrimination. - correct
Errors and Omissions Insurance (E&O)
Under common law, a person who contracts to do a job for another but maintains
instructions. - correct answer ✅
control over how the task will be carried out, rather than following detailed
Independent Contractor
✅
A person licensed under state law to practice real estate. - correct answer
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. - correct answer
REALTOR®
Generically speaking, a real estate licensee agent who is associated with a broker
Also called Sales Associate. - correct answer ✅
and as such may perform most of the acts a broker can on behalf of the broker.
Salesperson
,Colibri Real Estate Final Exam Study
Review question and answers
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. - correct answer
Statutory Nonemployee
✅
In which field do the majority of new licensees begin their work? - correct answer
Residential Sales
✅
Which is NOT an advantage to a career in real estate sales? - correct answer
the option to double commission percentages during slow months
Licensee Louie has worked for Rick, the broker at ABC Realty, for 20 years. Louie
statement is TRUE? - correct answer
misconduct.
✅
has been accused of negligence for not disclosing a material fact to a buyer. Which
Rick can be held liable for Louie's
document their income? - correct answer ✅
At the end of the year, what tax form will an independent contractor receive to
1099-MISC
correct responses. - correct answer ✅
Who could a real estate licensee represent in a real estate transaction? Select all
Buyers
Landlords
Sellers
Tenants
All are correct
, Colibri Real Estate Final Exam Study
Review question and answers
Which statement is TRUE? - correct answer
himself a REALTOR®.
✅
Steven just successfully finished his required real estate prelicensing course.
Once he joins the NAR, he can call
must be - correct answer ✅
In order to be considered an independent contractor, a licensee's compensation
based on sales produced, not hours worked.
independent contractor? - correct answer
spent in the brokerage office.
✅
For a real estate licensee, which is NOT a characteristic that indicates they are an
The licensee must be paid for hours
all correct responses. - correct answer✅
What are the tasks for which a property manager is typically responsible? Select
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. - correct answer True
response to supply and demand. - correct answer ✅
Real estate cycles tend to lag somewhat behind general business cycles in
True
