Colibri Real Estate Questions and Answers
Phil, a real estate licensee, considers going to work for $3,000
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?
A real estate licensee is more likely to be an employee False
of his broker.
If a broker supervises the real estate activities of an False
associated licensee, that licensee CANNOT be
considered an independent contractor.
A real estate licensee who is an independent contractor True
is paid based on successful real estate transactions, not
on hours worked.
Generically speaking, a person who, for a fee, sells, Broker
lists, leases, exchanges, negotiates, or otherwise deals
in the real estate of others or represents publicly that
they do so.
A business that serves as an intermediary between Brokerage
buyers and sellers and/or lessees and lessors of real
estate.
Insurance that protects real estate licensees from Errors and Omissions Insurance (E&O)
liability due to mistakes or negligence. It does not
cover claims related to fraud or discrimination.
Under common law, a person who contracts to do a job Independent Contractor
for another but maintains control over how the task will
be carried out, rather than following detailed
instructions.
A person licensed under state law to practice real Licensee
estate.
Any real estate licensee who is a member of the REALTOR®
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.
, Colibri Real Estate Questions and Answers
Generically speaking, a real estate licensee agent who Salesperson
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.
A real estate licensee who is treated as an independent Statutory Nonemployee
contractor for tax purposes when specified conditions
are met: proper licensing; compensation based on
sales; and services performed under a written contract.
In which field do the majority of new licensees begin Residential Sales
their work?
Which is NOT an advantage to a career in real estate the option to double commission percentages during slow months
sales?
Licensee Louie has worked for Rick, the broker at ABC Rick can be held liable for Louie's misconduct.
Realty, for 20 years. Louie has been accused of
negligence for not disclosing a material fact to a buyer.
Which statement is TRUE?
At the end of the year, what tax form will an 1099-MISC
independent contractor receive to document their
income?
Who could a real estate licensee represent in a real Buyers
estate transaction? Select all correct responses. Landlords
Sellers
Tenants
All are correct
Steven just successfully finished his required real estate Once he joins the NAR, he can call himself a REALTOR®.
prelicensing course. Which statement is TRUE?
In order to be considered an independent contractor, a based on sales produced, not hours worked.
licensee's compensation must be
For a real estate licensee, which is NOT a characteristic The licensee must be paid for hours spent in the brokerage office.
that indicates they are an independent contractor?
, Colibri Real Estate Questions and Answers
What are the tasks for which a property manager is Collecting Rents
typically responsible? Select all correct responses. 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 True
supply exceeds demand, prices will fall.
Real estate cycles tend to lag somewhat behind True
general business cycles in response to supply and
demand.
As the supply of homes in the area rises, what would Home prices will fall slightly from their high points.
you expect to happen to home prices in the short
term?
When Widget moves out, what type of market is Big Buyer's Market
City likely to experience?
Cost inflation can affect new home prices as builders True
pass along their higher costs for labor and materials.
Higher taxes tend to encourage spending and False
investing.
P-E-G-S Physical
Economic
Government
Social
A situation in the housing market when there are many Buyer's Market
homes available for sale, but few buyers.
The interest rate that people or businesses must pay to Cost of Money
use another's money for their own purposes.
The main business or industry in an area that supports Economic Base
and sustains the community.
An increase in the cost of goods or services or too Inflation
many people wanting too few goods.
, Colibri Real Estate Questions and Answers
A characteristic of real property; each piece of land, Non-Homogeneity
each building, and each house is a unique piece of real
estate. Also called Uniqueness or Heterogeneity.
General swings in real estate activity, resulting in Real Estate Cycles
increasing or decreasing activity and property values,
during different phases of the cycle.
A physical characteristic of real property that says there Scarcity
is a limited supply of real estate; the perceived supply
of a good or service relative to the demand for the
item.
A situation in the housing market when a large number Seller's Market
of buyers are looking for houses in an area of limited
availability.
An economic principle that says that for all products, Supply and Demand
goods, and services when supply exceeds demand,
prices will fall and when demand exceeds supply,
prices will rise.
These associates take and approve loan applications, Real Estate Finance
appraise properties, assess risk. They can find jobs with
savings and loan associations, mutual savings banks,
commercial banks, mortgage companies, endowments,
and government agencies.
People in this field use rigorous appraisal methods to Real Estate Appraisal
evaluate property for financial institutions, developers,
property managers, or government agencies.
These professionals purchase large tracts of land at a Real Estate Development
low cost per acre, then subdivide and improve it with
streets, sewers, and utilities so it can be resold at a
higher cost per front foot (for lots) or per square foot
(for buildings).
People in this area of real estate build homes on Real Estate Property Construction
contract or speculation. They might choose to sell,
appraise, manage, or help buyers finance the property.
This is a growing field. More and more brokers, banks, Real Estate Title Work
and lawyers are getting into this service area as profit
margins are shrinking elsewhere. Jobs can include title
researcher, escrow agent, and title insurance overseer.
Phil, a real estate licensee, considers going to work for $3,000
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?
A real estate licensee is more likely to be an employee False
of his broker.
If a broker supervises the real estate activities of an False
associated licensee, that licensee CANNOT be
considered an independent contractor.
A real estate licensee who is an independent contractor True
is paid based on successful real estate transactions, not
on hours worked.
Generically speaking, a person who, for a fee, sells, Broker
lists, leases, exchanges, negotiates, or otherwise deals
in the real estate of others or represents publicly that
they do so.
A business that serves as an intermediary between Brokerage
buyers and sellers and/or lessees and lessors of real
estate.
Insurance that protects real estate licensees from Errors and Omissions Insurance (E&O)
liability due to mistakes or negligence. It does not
cover claims related to fraud or discrimination.
Under common law, a person who contracts to do a job Independent Contractor
for another but maintains control over how the task will
be carried out, rather than following detailed
instructions.
A person licensed under state law to practice real Licensee
estate.
Any real estate licensee who is a member of the REALTOR®
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.
, Colibri Real Estate Questions and Answers
Generically speaking, a real estate licensee agent who Salesperson
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.
A real estate licensee who is treated as an independent Statutory Nonemployee
contractor for tax purposes when specified conditions
are met: proper licensing; compensation based on
sales; and services performed under a written contract.
In which field do the majority of new licensees begin Residential Sales
their work?
Which is NOT an advantage to a career in real estate the option to double commission percentages during slow months
sales?
Licensee Louie has worked for Rick, the broker at ABC Rick can be held liable for Louie's misconduct.
Realty, for 20 years. Louie has been accused of
negligence for not disclosing a material fact to a buyer.
Which statement is TRUE?
At the end of the year, what tax form will an 1099-MISC
independent contractor receive to document their
income?
Who could a real estate licensee represent in a real Buyers
estate transaction? Select all correct responses. Landlords
Sellers
Tenants
All are correct
Steven just successfully finished his required real estate Once he joins the NAR, he can call himself a REALTOR®.
prelicensing course. Which statement is TRUE?
In order to be considered an independent contractor, a based on sales produced, not hours worked.
licensee's compensation must be
For a real estate licensee, which is NOT a characteristic The licensee must be paid for hours spent in the brokerage office.
that indicates they are an independent contractor?
, Colibri Real Estate Questions and Answers
What are the tasks for which a property manager is Collecting Rents
typically responsible? Select all correct responses. 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 True
supply exceeds demand, prices will fall.
Real estate cycles tend to lag somewhat behind True
general business cycles in response to supply and
demand.
As the supply of homes in the area rises, what would Home prices will fall slightly from their high points.
you expect to happen to home prices in the short
term?
When Widget moves out, what type of market is Big Buyer's Market
City likely to experience?
Cost inflation can affect new home prices as builders True
pass along their higher costs for labor and materials.
Higher taxes tend to encourage spending and False
investing.
P-E-G-S Physical
Economic
Government
Social
A situation in the housing market when there are many Buyer's Market
homes available for sale, but few buyers.
The interest rate that people or businesses must pay to Cost of Money
use another's money for their own purposes.
The main business or industry in an area that supports Economic Base
and sustains the community.
An increase in the cost of goods or services or too Inflation
many people wanting too few goods.
, Colibri Real Estate Questions and Answers
A characteristic of real property; each piece of land, Non-Homogeneity
each building, and each house is a unique piece of real
estate. Also called Uniqueness or Heterogeneity.
General swings in real estate activity, resulting in Real Estate Cycles
increasing or decreasing activity and property values,
during different phases of the cycle.
A physical characteristic of real property that says there Scarcity
is a limited supply of real estate; the perceived supply
of a good or service relative to the demand for the
item.
A situation in the housing market when a large number Seller's Market
of buyers are looking for houses in an area of limited
availability.
An economic principle that says that for all products, Supply and Demand
goods, and services when supply exceeds demand,
prices will fall and when demand exceeds supply,
prices will rise.
These associates take and approve loan applications, Real Estate Finance
appraise properties, assess risk. They can find jobs with
savings and loan associations, mutual savings banks,
commercial banks, mortgage companies, endowments,
and government agencies.
People in this field use rigorous appraisal methods to Real Estate Appraisal
evaluate property for financial institutions, developers,
property managers, or government agencies.
These professionals purchase large tracts of land at a Real Estate Development
low cost per acre, then subdivide and improve it with
streets, sewers, and utilities so it can be resold at a
higher cost per front foot (for lots) or per square foot
(for buildings).
People in this area of real estate build homes on Real Estate Property Construction
contract or speculation. They might choose to sell,
appraise, manage, or help buyers finance the property.
This is a growing field. More and more brokers, banks, Real Estate Title Work
and lawyers are getting into this service area as profit
margins are shrinking elsewhere. Jobs can include title
researcher, escrow agent, and title insurance overseer.
