COLIBRI Real Estate | Newest Questions and
Answers | 2026 Update | Expert Verified
• 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
Answers | 2026 Update | Expert Verified
• 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
