COLIBRI REAL ESTATE PRINCIPLES UPDATED ACTUAL EXAM QUESTIONS CORRECT
ANSWERS GRADED A PLUS FORM TWO
Colibri REAL Estate Principles Final Paper
2026/2027 Examination Questions Questions and
Answers Verified Solutions Latest Update
Question:
Timothy has been hired by the estate of Tyler Wilbanks, who is recently deceased. Timothy has
Power of Attorney and will be handling all the real estate affairs of the deceased estate. Which type
of agent is Timothy?
Answer:
Universal Agent - handles all delegated business of principal.
Question:
Sacramento artist S.C. Heet has transferred a portion of her property, via a grant deed, to Cameron
Dulle. However, this deed did not set forth in writing the two primary warranties Cameron should
have on the property: first, that S. C. has not already transferred the title to another person; and,
second, that the estate is free of any encumbrances, other than what has been disclosed to the
grantor. Which of the following is true of this situation?
Answer:
Under a grant deed, the two warranties - that S. C. has not already transferred the title to another
person, and that the estate is free of any encumbrances, other than which has been disclosed - are
implied within the grant. These implied warranties do not need to be stated in the deed, but are still
present A grant deed is a document that legally transfers the ownership of a property from the seller
of the property to the buyer. A grant deed gives two warranties to a buyer of the property and there
are: a. The property has not been sold to anybody else b. There are no limitations present on the
property that the buyer is not aware of already. These warranties present in a grant deed do not need
to be stated but they are present in the grant deed anyways. A grant deed must contain the following:
a. The name of the person transferring the property also known as the grantor. b. The name of the
person the property is being transferred to also known as the grantee. c. The accurate description of
the property been transferred. Reassessment of property tax on a property that has a grant deed is not
necessary at all. A public official who has been commission also known as a notary is always
present at the signing of a grant deed.
,Question:
Lancaster salesperson Jamie Dafe has begun to branch out into mortgage brokering. She continues
to show homes to clients, but hasn't been actively seeking out new listings. Instead, she acts as a
loan broker by buying, selling, or exchanging loans. Which of the following statements applies to
Jamie's current situation?
Answer:
Jamie may not act as a loan broker unless she is properly licensed as one, under the Mortgage Loan
Broker Law, set forth under the California Business and Professions Code, Article 7. The loan
application must include information regarding the real estate broker and must be signed by both the
borrower and the broker. Section 10241 (i) of the California Business and Professions Code, Article
7 requires: "A statement containing the name of the real estate broker negotiating the loan, his or her
license number, and the address of his or her licensed place of business."
Question:
Which of the following is NOT a type of water rights?
Answer:
Alluvial Right The below ARE types of water rights Riparian Rights Littoral Rights Doctrine of
Prior Appropriation - which relate to irrigation and "first in time equals first in rights" theory.
Question:
San Bernardino seller Craig Watkins has just signed a contract to sell his home of 13 years to buyer
Ivedale Bosch, who has recently moved to California from Montana. The contract has met all the
necessary requirements, and all inspections and other mandates have gone along as expected and as
agreed to until one week before closing, when Craig decides to back out. However, he understands
that he could face legal action by Ivy; so he offers to sell her another house he owns and has rented
out for the past few years, in lieu of the San Bernardino one promised. The second home is worth
$15,000 more than the originally contracted one, and has an extra bedroom. However, Ivy isn't
interested, because she wants to be close to her elderly mother, who lives in a San Bernardino
retirement complex. Craig refuses to complete the sale on the original home. Which of the following
statements is true of this situation?
Answer:
Craig cannot force Ivy to accept his offer of the other property. However, under California Civil
Code, if the seller in this type of situation (Craig) offers the prospective buyer a home of equal or
greater value, with an equal or greater number of bedrooms and square footage, the buyer may not
, bring legal action against that seller. Explanation: The house that was offered first by Craig Watkins
for sale was canceled and he decided to back out from the deal. But since there was fear of a legal
action by Ivy, he decided to offer another house to Ivy. But the other house that was offered did not
fulfill the agreement and the requirements of the buyer. But still he can not take any legal action
against the seller because the new house that has been offered is comparatively a bigger one and has
more value than the previous house. So this avoids the fear of any legal action. But still the seller
can not force the buyer, Ivy to buy this new house and continue with the deal.
Question:
On Kyle Thomason's $400,000.00 loan, the lender charges a 2- point service charge. In this
situation, how much will Kyle have to pay for this service charge at closing, and how would such a
charge appear on the statement?
Answer:
$8,000 as debit to the buyer. This is an interest expense. In accounting, the rule is as follows: Debit
side increases asset and expenses while credit side decreases liability, shareholders' equity and sales
or revenue. Credit side decreases asset and expenses while credit side increases liability,
shareholders' equity and sales or revenue. 2 points on $400,000 means the interest charge is 2
percent on $400,000. So we have 0.02 x $400,000 $8,000. It will be a debit side because it is an
increase in expense.
Question:
Bob leased an apartment for three years from the Steiners. He was never late on his rent in those
three years, kept the apartment immaculate, and never caused a moment of trouble. He has recently
purchased his first home and moved out of the apartment. As expected, Bob gave the Steiners sixty
days' notice he would be moving and left the apartment in perfect condition. It has been 45 days
since he moved out and he's been watching for his security deposit refund to purchase a new sofa.
When should he expect his security deposit refunded?
Answer:
If there had been no damage or cleaning required, which seemed highly unlikely in Bob's case, the
landlord should have refunded his security deposit within 21 days of Bob's vacating the property.
Explanation: According to lease termination or surrender and acceptance of the premises, the
dateline to return security deposit as provided in state's security deposit statutes is within a month or
21 days. In case if a lease agreement specifies a longer period of time for the return of the security
deposit, the tenant must forward a demand letter, which applies in both lease termination and lease
agreement, and comply with the dateline as specified in the agreement. However in Bob's case, if
there is no case of such agreement that specifies a longer period of time for the return of security
ANSWERS GRADED A PLUS FORM TWO
Colibri REAL Estate Principles Final Paper
2026/2027 Examination Questions Questions and
Answers Verified Solutions Latest Update
Question:
Timothy has been hired by the estate of Tyler Wilbanks, who is recently deceased. Timothy has
Power of Attorney and will be handling all the real estate affairs of the deceased estate. Which type
of agent is Timothy?
Answer:
Universal Agent - handles all delegated business of principal.
Question:
Sacramento artist S.C. Heet has transferred a portion of her property, via a grant deed, to Cameron
Dulle. However, this deed did not set forth in writing the two primary warranties Cameron should
have on the property: first, that S. C. has not already transferred the title to another person; and,
second, that the estate is free of any encumbrances, other than what has been disclosed to the
grantor. Which of the following is true of this situation?
Answer:
Under a grant deed, the two warranties - that S. C. has not already transferred the title to another
person, and that the estate is free of any encumbrances, other than which has been disclosed - are
implied within the grant. These implied warranties do not need to be stated in the deed, but are still
present A grant deed is a document that legally transfers the ownership of a property from the seller
of the property to the buyer. A grant deed gives two warranties to a buyer of the property and there
are: a. The property has not been sold to anybody else b. There are no limitations present on the
property that the buyer is not aware of already. These warranties present in a grant deed do not need
to be stated but they are present in the grant deed anyways. A grant deed must contain the following:
a. The name of the person transferring the property also known as the grantor. b. The name of the
person the property is being transferred to also known as the grantee. c. The accurate description of
the property been transferred. Reassessment of property tax on a property that has a grant deed is not
necessary at all. A public official who has been commission also known as a notary is always
present at the signing of a grant deed.
,Question:
Lancaster salesperson Jamie Dafe has begun to branch out into mortgage brokering. She continues
to show homes to clients, but hasn't been actively seeking out new listings. Instead, she acts as a
loan broker by buying, selling, or exchanging loans. Which of the following statements applies to
Jamie's current situation?
Answer:
Jamie may not act as a loan broker unless she is properly licensed as one, under the Mortgage Loan
Broker Law, set forth under the California Business and Professions Code, Article 7. The loan
application must include information regarding the real estate broker and must be signed by both the
borrower and the broker. Section 10241 (i) of the California Business and Professions Code, Article
7 requires: "A statement containing the name of the real estate broker negotiating the loan, his or her
license number, and the address of his or her licensed place of business."
Question:
Which of the following is NOT a type of water rights?
Answer:
Alluvial Right The below ARE types of water rights Riparian Rights Littoral Rights Doctrine of
Prior Appropriation - which relate to irrigation and "first in time equals first in rights" theory.
Question:
San Bernardino seller Craig Watkins has just signed a contract to sell his home of 13 years to buyer
Ivedale Bosch, who has recently moved to California from Montana. The contract has met all the
necessary requirements, and all inspections and other mandates have gone along as expected and as
agreed to until one week before closing, when Craig decides to back out. However, he understands
that he could face legal action by Ivy; so he offers to sell her another house he owns and has rented
out for the past few years, in lieu of the San Bernardino one promised. The second home is worth
$15,000 more than the originally contracted one, and has an extra bedroom. However, Ivy isn't
interested, because she wants to be close to her elderly mother, who lives in a San Bernardino
retirement complex. Craig refuses to complete the sale on the original home. Which of the following
statements is true of this situation?
Answer:
Craig cannot force Ivy to accept his offer of the other property. However, under California Civil
Code, if the seller in this type of situation (Craig) offers the prospective buyer a home of equal or
greater value, with an equal or greater number of bedrooms and square footage, the buyer may not
, bring legal action against that seller. Explanation: The house that was offered first by Craig Watkins
for sale was canceled and he decided to back out from the deal. But since there was fear of a legal
action by Ivy, he decided to offer another house to Ivy. But the other house that was offered did not
fulfill the agreement and the requirements of the buyer. But still he can not take any legal action
against the seller because the new house that has been offered is comparatively a bigger one and has
more value than the previous house. So this avoids the fear of any legal action. But still the seller
can not force the buyer, Ivy to buy this new house and continue with the deal.
Question:
On Kyle Thomason's $400,000.00 loan, the lender charges a 2- point service charge. In this
situation, how much will Kyle have to pay for this service charge at closing, and how would such a
charge appear on the statement?
Answer:
$8,000 as debit to the buyer. This is an interest expense. In accounting, the rule is as follows: Debit
side increases asset and expenses while credit side decreases liability, shareholders' equity and sales
or revenue. Credit side decreases asset and expenses while credit side increases liability,
shareholders' equity and sales or revenue. 2 points on $400,000 means the interest charge is 2
percent on $400,000. So we have 0.02 x $400,000 $8,000. It will be a debit side because it is an
increase in expense.
Question:
Bob leased an apartment for three years from the Steiners. He was never late on his rent in those
three years, kept the apartment immaculate, and never caused a moment of trouble. He has recently
purchased his first home and moved out of the apartment. As expected, Bob gave the Steiners sixty
days' notice he would be moving and left the apartment in perfect condition. It has been 45 days
since he moved out and he's been watching for his security deposit refund to purchase a new sofa.
When should he expect his security deposit refunded?
Answer:
If there had been no damage or cleaning required, which seemed highly unlikely in Bob's case, the
landlord should have refunded his security deposit within 21 days of Bob's vacating the property.
Explanation: According to lease termination or surrender and acceptance of the premises, the
dateline to return security deposit as provided in state's security deposit statutes is within a month or
21 days. In case if a lease agreement specifies a longer period of time for the return of the security
deposit, the tenant must forward a demand letter, which applies in both lease termination and lease
agreement, and comply with the dateline as specified in the agreement. However in Bob's case, if
there is no case of such agreement that specifies a longer period of time for the return of security
