COLIBRI SCHOOL FINAL PAPER
QUESTIONS AND ACCURATE ANSWERS
COMPLETE PREPARATION KIT
●● 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.
Answer: 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?
Answer: $3,000
●● A real estate licensee is more likely to be an employee of his broker.
Answer: False
●● If a broker supervises the real estate activities of an associated
licensee, that licensee CANNOT be considered an independent
contractor.
Answer: False
,●● A real estate licensee who is an independent contractor is paid based
on successful real estate transactions, not on hours worked.
Answer: 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.
Answer: Broker
●● A business that serves as an intermediary between buyers and sellers
and/or lessees and lessors of real estate.
Answer: Brokerage
●● Insurance that protects real estate licensees from liability due to
mistakes or negligence. It does not cover claims related to fraud or
discrimination.
Answer: 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.
Answer: Independent Contractor
,●● A person licensed under state law to practice real estate.
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.
Answer: 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.
Answer: 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.
Answer: Statutory Nonemployee
●● In which field do the majority of new licensees begin their work?
Answer: Residential Sales
●● Which is NOT an advantage to a career in real estate sales?
, 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 has been accused of negligence for not disclosing a
material fact to a buyer. Which statement is TRUE?
Answer: 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?
Answer: 1099-MISC
●● Who could a real estate licensee represent in a real estate
transaction? Select all correct responses.
Answer: Buyers
Landlords
Sellers
Tenants
All are correct
●● Steven just successfully finished his required real estate prelicensing
course. Which statement is TRUE?
Answer: Once he joins the NAR, he can call himself a REALTOR®.
QUESTIONS AND ACCURATE ANSWERS
COMPLETE PREPARATION KIT
●● 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.
Answer: 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?
Answer: $3,000
●● A real estate licensee is more likely to be an employee of his broker.
Answer: False
●● If a broker supervises the real estate activities of an associated
licensee, that licensee CANNOT be considered an independent
contractor.
Answer: False
,●● A real estate licensee who is an independent contractor is paid based
on successful real estate transactions, not on hours worked.
Answer: 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.
Answer: Broker
●● A business that serves as an intermediary between buyers and sellers
and/or lessees and lessors of real estate.
Answer: Brokerage
●● Insurance that protects real estate licensees from liability due to
mistakes or negligence. It does not cover claims related to fraud or
discrimination.
Answer: 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.
Answer: Independent Contractor
,●● A person licensed under state law to practice real estate.
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.
Answer: 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.
Answer: 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.
Answer: Statutory Nonemployee
●● In which field do the majority of new licensees begin their work?
Answer: Residential Sales
●● Which is NOT an advantage to a career in real estate sales?
, 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 has been accused of negligence for not disclosing a
material fact to a buyer. Which statement is TRUE?
Answer: 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?
Answer: 1099-MISC
●● Who could a real estate licensee represent in a real estate
transaction? Select all correct responses.
Answer: Buyers
Landlords
Sellers
Tenants
All are correct
●● Steven just successfully finished his required real estate prelicensing
course. Which statement is TRUE?
Answer: Once he joins the NAR, he can call himself a REALTOR®.
