COLIBRI REAL ESTATE PRINCIPLES EXAM STUDY SHEET COMPLETE QUESTIONS
ACCURATE SOLUTIONS
Colibri REAL Estate Principles Final EXAM
2026/2027 Final Paper WITH Questions and Answers
Verified Solutions Latest Update
Question:
Escrow cannot be terminated in which of the following ways?
Answer:
Death of one of the principals ESCROW CAN BE TERMINATED BY The completion of escrow
Mutual agreement By a court or interpleader action
Question:
Kathy Bates has just moved into a condominium complex of 60 units. The complex has a swimming
pool, and a management company takes care of the upkeep of the outside of the property. The
monthly cost for pool maintenance, grass cutting, tree trimming, private street maintenance, and the
newly-updated clubhouse is currently $400.00 a month. Each year, the cost of such services
increases, as do the costs for necessary repairs as the buildings get older. This year, new roofs are in
order for all of the buildings. The condominium association, which is made up of the owners of the
property, decides that, in order to cover the increase in costs, and to replace the roofs on the
property, they must pass a
Answer:
Special Assessment NOT Ad valorem tax (insert why) General real estate tax (insert why)
Question:
Pauline Chasse has just signed a lease agreement with landlord, Wayne Godbrey to rent a house he
owns in Delano. The lease states definite beginning (January 1, 2016) and ending (October 30,
2016) dates, and sets forth the rent amount and due dates and all additional property and personal
information required in such a lease. Wayne hands a copy to Pauline, but she notices that he has not
signed it. When she comments about this to him, he tells her that signatures are not necessary since
the lease is for less than a year. Which of the following is true of this situation?
Answer:
,Leases of less than 1 year are not required to be in writing. However, if a lease is in writing, then it
must be signed by the lessor (in this case, Wayne)
Question:
Which of the following is NOT considered one of the basic types of Common Interest
Developments?
Answer:
Mobile Home Parks The below ARE considered Common Interest Developments Condominiums
Cooperatives Planned developments
Question:
Under Article 7 on "hard money loans" (cash) of $30,000.00 and over for first trust deed loans, and
$20,000.00 and over for junior deeds of trust, except where the new usury laws apply, the loan
broker's commission maximum is:
Answer:
The broker MAY CHARGE as much commission as the borrower will agree to pay. The regulations
also require that the broker provides to BOTH the buyer and seller, on first trust deed loans UNDER
$30,000.00, and on junior trust deed loans UNDER $20,000.00, copies of the appraisal report.Loans
on owner-occupied homes that are negotiated by a broker for a term of 6 or more years may not
have a balloon payment. In any situation that involves a balloon payment, the SELLER is required
to notify the BUYER between 60 and 150 days BEFORE the payment is due.If the home is NOT
occupied by the owner, then the loans are exempt from balloon payments, IF the loan term is less
than 3 years.Threshold Reporting is the requirement to report annual and quarterly loan activities
(review of trust fund) to the California BRE, IF, within the past 12 months, a broker has negotiated
any combination of 10 or more loans to a subdivision OR a total of more than $1,000,000.00 in
loans. Regulations for "big lending," as this is known, include the requirement that advertising must
be reviewed by the CalBRE. The intent of the threshold reporting regulations is to protect the public
by overseeing the loan activity of these "big lenders," who are using their real estate licenses to take
on such activities.
Question:
In 2013, Jack and Shirley Wright moved from Riverside, in Southern California, up to Santa Clara,
in Northern California, when Jack's company opened a new branch office there. They decided to
rent for a while so they could get to know the area before buying a home. Three weeks ago, they
, finally found and put a contract on a lovely 3-bedroom ranch, and the sellers accepted the first offer.
They took that as a good sign, but now it's only 5 days until the close of escrow and they still haven't
signed the escrow papers yet. In fact, they aren't due to sign the escrow papers until the day before
the actual close of escrow. The Wrights are under the impression that something is wrong, because
when they sold their last home, the escrow instructions had to be signed by both parties to the
transaction immediately after they all signed the purchase agreement--about 60 days ahead of the
actual close of escrow date. Which of th
Answer:
The escrow practices in Southern California differ from those in Northern California. In Southern
California, the escrow instructions are signed by the buyer and seller shortly after they've signed the
purchase agreement, just after the start of escrow, which is about 60 days prior to the actual close of
escrow. In Northern California, the escrow instructions are usually not signed until one or two days
just before the close of escrow.
Question:
Ollie and Molly Overton have just taken out a 30-year straight term loan on their new "starter home"
in Bellflower. This means that:
Answer:
They will make payments of interest only, with the principal due on the loan due date in 30 years.
Question:
Co-authors and sisters, Mary and Perry Corrigan, have just written their fourth bestseller, even
though Mary lives on the East Coast, while Perry resides in Calistoga. When the home next door to
Perry is sold, Perry buys it and then gift deeds it to her sister so that they can live side- by-side for
the several months of the year they spend writing together. In this situation, what consideration is
necessary for this deed to be considered valid and legal?
Answer:
Love and affection is the only consideration necessary. A Gift deed here refers to the transfer of
ownership of a property between relatives without an exchange of money. Consideration is an object
of value each party involved in a contract, in this case, a transfer of deed, brings to the contract. In a
situation where money is exchanged for a property, the considerations are the money and the
property. However, love and affection can also be a form of consideration, referred to as good
consideration. This kind of consideration is valid between relatives and is also used to donate to
charities.
ACCURATE SOLUTIONS
Colibri REAL Estate Principles Final EXAM
2026/2027 Final Paper WITH Questions and Answers
Verified Solutions Latest Update
Question:
Escrow cannot be terminated in which of the following ways?
Answer:
Death of one of the principals ESCROW CAN BE TERMINATED BY The completion of escrow
Mutual agreement By a court or interpleader action
Question:
Kathy Bates has just moved into a condominium complex of 60 units. The complex has a swimming
pool, and a management company takes care of the upkeep of the outside of the property. The
monthly cost for pool maintenance, grass cutting, tree trimming, private street maintenance, and the
newly-updated clubhouse is currently $400.00 a month. Each year, the cost of such services
increases, as do the costs for necessary repairs as the buildings get older. This year, new roofs are in
order for all of the buildings. The condominium association, which is made up of the owners of the
property, decides that, in order to cover the increase in costs, and to replace the roofs on the
property, they must pass a
Answer:
Special Assessment NOT Ad valorem tax (insert why) General real estate tax (insert why)
Question:
Pauline Chasse has just signed a lease agreement with landlord, Wayne Godbrey to rent a house he
owns in Delano. The lease states definite beginning (January 1, 2016) and ending (October 30,
2016) dates, and sets forth the rent amount and due dates and all additional property and personal
information required in such a lease. Wayne hands a copy to Pauline, but she notices that he has not
signed it. When she comments about this to him, he tells her that signatures are not necessary since
the lease is for less than a year. Which of the following is true of this situation?
Answer:
,Leases of less than 1 year are not required to be in writing. However, if a lease is in writing, then it
must be signed by the lessor (in this case, Wayne)
Question:
Which of the following is NOT considered one of the basic types of Common Interest
Developments?
Answer:
Mobile Home Parks The below ARE considered Common Interest Developments Condominiums
Cooperatives Planned developments
Question:
Under Article 7 on "hard money loans" (cash) of $30,000.00 and over for first trust deed loans, and
$20,000.00 and over for junior deeds of trust, except where the new usury laws apply, the loan
broker's commission maximum is:
Answer:
The broker MAY CHARGE as much commission as the borrower will agree to pay. The regulations
also require that the broker provides to BOTH the buyer and seller, on first trust deed loans UNDER
$30,000.00, and on junior trust deed loans UNDER $20,000.00, copies of the appraisal report.Loans
on owner-occupied homes that are negotiated by a broker for a term of 6 or more years may not
have a balloon payment. In any situation that involves a balloon payment, the SELLER is required
to notify the BUYER between 60 and 150 days BEFORE the payment is due.If the home is NOT
occupied by the owner, then the loans are exempt from balloon payments, IF the loan term is less
than 3 years.Threshold Reporting is the requirement to report annual and quarterly loan activities
(review of trust fund) to the California BRE, IF, within the past 12 months, a broker has negotiated
any combination of 10 or more loans to a subdivision OR a total of more than $1,000,000.00 in
loans. Regulations for "big lending," as this is known, include the requirement that advertising must
be reviewed by the CalBRE. The intent of the threshold reporting regulations is to protect the public
by overseeing the loan activity of these "big lenders," who are using their real estate licenses to take
on such activities.
Question:
In 2013, Jack and Shirley Wright moved from Riverside, in Southern California, up to Santa Clara,
in Northern California, when Jack's company opened a new branch office there. They decided to
rent for a while so they could get to know the area before buying a home. Three weeks ago, they
, finally found and put a contract on a lovely 3-bedroom ranch, and the sellers accepted the first offer.
They took that as a good sign, but now it's only 5 days until the close of escrow and they still haven't
signed the escrow papers yet. In fact, they aren't due to sign the escrow papers until the day before
the actual close of escrow. The Wrights are under the impression that something is wrong, because
when they sold their last home, the escrow instructions had to be signed by both parties to the
transaction immediately after they all signed the purchase agreement--about 60 days ahead of the
actual close of escrow date. Which of th
Answer:
The escrow practices in Southern California differ from those in Northern California. In Southern
California, the escrow instructions are signed by the buyer and seller shortly after they've signed the
purchase agreement, just after the start of escrow, which is about 60 days prior to the actual close of
escrow. In Northern California, the escrow instructions are usually not signed until one or two days
just before the close of escrow.
Question:
Ollie and Molly Overton have just taken out a 30-year straight term loan on their new "starter home"
in Bellflower. This means that:
Answer:
They will make payments of interest only, with the principal due on the loan due date in 30 years.
Question:
Co-authors and sisters, Mary and Perry Corrigan, have just written their fourth bestseller, even
though Mary lives on the East Coast, while Perry resides in Calistoga. When the home next door to
Perry is sold, Perry buys it and then gift deeds it to her sister so that they can live side- by-side for
the several months of the year they spend writing together. In this situation, what consideration is
necessary for this deed to be considered valid and legal?
Answer:
Love and affection is the only consideration necessary. A Gift deed here refers to the transfer of
ownership of a property between relatives without an exchange of money. Consideration is an object
of value each party involved in a contract, in this case, a transfer of deed, brings to the contract. In a
situation where money is exchanged for a property, the considerations are the money and the
property. However, love and affection can also be a form of consideration, referred to as good
consideration. This kind of consideration is valid between relatives and is also used to donate to
charities.
