COLIBRI REAL ESTATE LAW EXAM BANK | COMPLETE QUESTIONS
WITH 100% RATED EXPERT SOLUTIONS |2026 LATEST UPDATED
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? - (answer)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.
- (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®.
In order to be considered an independent contractor, a licensee's compensation must be -
(answer)based on sales produced, not hours worked.
WITH 100% RATED EXPERT SOLUTIONS |2026 LATEST UPDATED
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? - (answer)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.
- (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®.
In order to be considered an independent contractor, a licensee's compensation must be -
(answer)based on sales produced, not hours worked.
