COLIBRI REAL ESTATE PRINCIPLES FINAL 2026
PROPERTY LAW AND PRACTICES
ASSESSMENT STUDY GUIDE COMPLETE
QUESTIONS AND ANSWERS
◉ Lancaster salesperson Jamie Dafe has begun to branch out into
mortgage brokering. She continues to show homes to clients, but
hasn't been actively seeking out new listings. Instead, she acts as a
loan broker by buying, selling, or exchanging loans. Which of the
following statements applies to Jamie's current situation? Answer:
Jamie may not act as a loan broker unless she is properly licensed as
one, under the Mortgage Loan Broker Law, set forth under the
California Business and Professions Code, Article 7.
The loan application must include information regarding the real
estate broker and must be signed by both the borrower and the
broker.
Section 10241 (i) of the California Business and Professions Code,
Article 7 requires:
"A statement containing the name of the real estate broker
negotiating the loan, his or her license number, and the address of
his or her licensed place of business."
,◉ Which of the following is NOT a type of water rights? Answer:
Alluvial Right
The below ARE types of water rights
Riparian Rights
Littoral Rights
Doctrine of Prior Appropriation - which relate to irrigation and "first
in time equals first in rights" theory.
◉ San Bernardino seller Craig Watkins has just signed a contract to
sell his home of 13 years to buyer Ivedale Bosch, who has recently
moved to California from Montana. The contract has met all the
necessary requirements, and all inspections and other mandates
have gone along as expected and as agreed to until one week before
closing, when Craig decides to back out. However, he understands
that he could face legal action by Ivy; so he offers to sell her another
house he owns and has rented out for the past few years, in lieu of
the San Bernardino one promised. The second home is worth
$15,000 more than the originally contracted one, and has an extra
bedroom. However, Ivy isn't interested, because she wants to be
close to her elderly mother, who lives in a San Bernardino
retirement complex. Craig refuses to complete the sale on the
original home. Which of the following statements is true of this
situation? Answer: Craig cannot force Ivy to accept his offer of the
other property. However, under California Civil Code, if the seller in
this type of situation (Craig) offers the prospective buyer a home of
equal or greater value, with an equal or greater number of bedrooms
, and square footage, the buyer may not bring legal action against that
seller.
Explanation:
The house that was offered first by Craig Watkins for sale was
canceled and he decided to back out from the deal. But since there
was fear of a legal action by Ivy, he decided to offer another house to
Ivy. But the other house that was offered did not fulfill the
agreement and the requirements of the buyer.
But still he can not take any legal action against the seller because
the new house that has been offered is comparatively a bigger one
and has more value than the previous house. So this avoids the fear
of any legal action. But still the seller can not force the buyer, Ivy to
buy this new house and continue with the deal.
◉ On Kyle Thomason's $400,000.00 loan, the lender charges a 2-
point service charge. In this situation, how much will Kyle have to
pay for this service charge at closing, and how would such a charge
appear on the statement? Answer: $8,000 as debit to the buyer.
This is an interest expense.
In accounting, the rule is as follows:
Debit side increases asset and expenses while credit side decreases
liability, shareholders' equity and sales or revenue.
PROPERTY LAW AND PRACTICES
ASSESSMENT STUDY GUIDE COMPLETE
QUESTIONS AND ANSWERS
◉ Lancaster salesperson Jamie Dafe has begun to branch out into
mortgage brokering. She continues to show homes to clients, but
hasn't been actively seeking out new listings. Instead, she acts as a
loan broker by buying, selling, or exchanging loans. Which of the
following statements applies to Jamie's current situation? Answer:
Jamie may not act as a loan broker unless she is properly licensed as
one, under the Mortgage Loan Broker Law, set forth under the
California Business and Professions Code, Article 7.
The loan application must include information regarding the real
estate broker and must be signed by both the borrower and the
broker.
Section 10241 (i) of the California Business and Professions Code,
Article 7 requires:
"A statement containing the name of the real estate broker
negotiating the loan, his or her license number, and the address of
his or her licensed place of business."
,◉ Which of the following is NOT a type of water rights? Answer:
Alluvial Right
The below ARE types of water rights
Riparian Rights
Littoral Rights
Doctrine of Prior Appropriation - which relate to irrigation and "first
in time equals first in rights" theory.
◉ San Bernardino seller Craig Watkins has just signed a contract to
sell his home of 13 years to buyer Ivedale Bosch, who has recently
moved to California from Montana. The contract has met all the
necessary requirements, and all inspections and other mandates
have gone along as expected and as agreed to until one week before
closing, when Craig decides to back out. However, he understands
that he could face legal action by Ivy; so he offers to sell her another
house he owns and has rented out for the past few years, in lieu of
the San Bernardino one promised. The second home is worth
$15,000 more than the originally contracted one, and has an extra
bedroom. However, Ivy isn't interested, because she wants to be
close to her elderly mother, who lives in a San Bernardino
retirement complex. Craig refuses to complete the sale on the
original home. Which of the following statements is true of this
situation? Answer: Craig cannot force Ivy to accept his offer of the
other property. However, under California Civil Code, if the seller in
this type of situation (Craig) offers the prospective buyer a home of
equal or greater value, with an equal or greater number of bedrooms
, and square footage, the buyer may not bring legal action against that
seller.
Explanation:
The house that was offered first by Craig Watkins for sale was
canceled and he decided to back out from the deal. But since there
was fear of a legal action by Ivy, he decided to offer another house to
Ivy. But the other house that was offered did not fulfill the
agreement and the requirements of the buyer.
But still he can not take any legal action against the seller because
the new house that has been offered is comparatively a bigger one
and has more value than the previous house. So this avoids the fear
of any legal action. But still the seller can not force the buyer, Ivy to
buy this new house and continue with the deal.
◉ On Kyle Thomason's $400,000.00 loan, the lender charges a 2-
point service charge. In this situation, how much will Kyle have to
pay for this service charge at closing, and how would such a charge
appear on the statement? Answer: $8,000 as debit to the buyer.
This is an interest expense.
In accounting, the rule is as follows:
Debit side increases asset and expenses while credit side decreases
liability, shareholders' equity and sales or revenue.
