COLIBRI PRACTICE TEST
LATEST UPDATE 2026/2027
GRADED A+ .
,1. 3. In real estate, which of the following is correct about the term "title?":
2. Taxes and insurance are often prepaid at closing to establish the escrow account. On which page of the
Closing Disclosure form will the buyer see an accounting of the escrow account set up?: Page two, under other costs
On page two of the form, other costs are itemized for buyers and sellers. Taxes, prepaids, and initial escrow payment at closing - usually two months' worth, are paid by the
buyer and shown on page 2.
3. How is the sales price reflected on the closing form for the buyer and the seller✓✓ CORRECT ANSWER The sales
price is a debit to the buyer and a credit to the seller
The seller receives the sales price less adjustment at closings or debit. The buyer pays the sales price less adjustment for deposit and loans.
4. Which clause in a deed defines the ownership taken by the grantee and clarifies the purpose of the deed✓✓
CORRECT ANSWER The Habendum Clause
Also known as the "to have and to hold" the Habendum Clause. This is the clause that describes the rights being transferred. Exceptions and reservations are included in this
clause.
5. When a cap rate used with income capitalization is high, the following relationship with sales price exists:: risk and
cap rate are higher, the sales price is usually lower.
Cap rate is likened to the risk factor when purchasing an investment property - a high cap rate indicates high risk, and often the sales price is lower.
6. Property is located next to a busy freeway; semi-trucks use the freeway all night long. After two years on the
market, the seller reduced his price by 25%. Which loss of value has occurred✓✓ CORRECT ANSWER Economic or external
obsolescence
Economic or external obsolescence is a loss of value outside of the perimeter boundary of the property, beyond the owner's control, and almost always incurable.
7. A homestead exemption in Florida is available to those who qualify and file documents making the Florida
home a primary residence. The base home-stead exemption is:: $25,000
, The base homestead exemption is $25,000. There is an additional $25,000 available for qualified property owners; however, the additional $25,000 does NOT apply to
school taxes.
8. A closing is March 5 for a rental property with an annual tax bill of $2800. Calculate and show the debit and
credits for the tax proration between the buyer and seller using the 365-day method, the day of closing belongs
to the buyer.: debit seller $483.29; credit buyer $483.29
The purpose of proration is to assign the amount owed to the responsible party. The taxes will be paid by the buyer at the end of the year. The buyer needs money from the seller
for the days that the seller owned. $2800/365 = $7.67 per day. Jan = 31 days, Feb. = 28 days and March = 4 day total 63 X $7.67 = $483.21 that the seller owes for the time he
owned. NOTE: The amount taken from the seller is given to the buyer - it is the same amount. Use 3 decimal places and don't clear the calculator between steps.
9. John is a sales associate who has complaints against him for making false statements about the property and
for giving advice about the purchase contract. This is the third time these same violations have been investigated.
If John is found guilty of violating these two practices at the formal hearing, the maximum fine John can face is::
10,000
For second and subsequent violations, $2500 to $5000 fine and suspension for up to six years or revocation. The fine is $5000 maximum for each ottense.
10. A deed and a real estate purchase agreement would not be considered valid without:: an adequate legal description.
The property must be accurately described in any purchase agreement and deed, so there is no question about what is being transferred. In a deed, the legal description is in
the premises clause.
11. A mortgage is a legal contract with terms that benefit both the lender and the borrower. Which clause is
a benefit to the borrower and NOT to the lender✓✓ CORRECT ANSWER The Defeasance clause
If the borrower defaults, the lender can call the balance due; the maintenance clause required the borrower to keep the property in good condition, and the alienation clause
prevents the sale to another borrower. The defeasance clause requires the lender to record a document when the loan is paid - killing the lien.
LATEST UPDATE 2026/2027
GRADED A+ .
,1. 3. In real estate, which of the following is correct about the term "title?":
2. Taxes and insurance are often prepaid at closing to establish the escrow account. On which page of the
Closing Disclosure form will the buyer see an accounting of the escrow account set up?: Page two, under other costs
On page two of the form, other costs are itemized for buyers and sellers. Taxes, prepaids, and initial escrow payment at closing - usually two months' worth, are paid by the
buyer and shown on page 2.
3. How is the sales price reflected on the closing form for the buyer and the seller✓✓ CORRECT ANSWER The sales
price is a debit to the buyer and a credit to the seller
The seller receives the sales price less adjustment at closings or debit. The buyer pays the sales price less adjustment for deposit and loans.
4. Which clause in a deed defines the ownership taken by the grantee and clarifies the purpose of the deed✓✓
CORRECT ANSWER The Habendum Clause
Also known as the "to have and to hold" the Habendum Clause. This is the clause that describes the rights being transferred. Exceptions and reservations are included in this
clause.
5. When a cap rate used with income capitalization is high, the following relationship with sales price exists:: risk and
cap rate are higher, the sales price is usually lower.
Cap rate is likened to the risk factor when purchasing an investment property - a high cap rate indicates high risk, and often the sales price is lower.
6. Property is located next to a busy freeway; semi-trucks use the freeway all night long. After two years on the
market, the seller reduced his price by 25%. Which loss of value has occurred✓✓ CORRECT ANSWER Economic or external
obsolescence
Economic or external obsolescence is a loss of value outside of the perimeter boundary of the property, beyond the owner's control, and almost always incurable.
7. A homestead exemption in Florida is available to those who qualify and file documents making the Florida
home a primary residence. The base home-stead exemption is:: $25,000
, The base homestead exemption is $25,000. There is an additional $25,000 available for qualified property owners; however, the additional $25,000 does NOT apply to
school taxes.
8. A closing is March 5 for a rental property with an annual tax bill of $2800. Calculate and show the debit and
credits for the tax proration between the buyer and seller using the 365-day method, the day of closing belongs
to the buyer.: debit seller $483.29; credit buyer $483.29
The purpose of proration is to assign the amount owed to the responsible party. The taxes will be paid by the buyer at the end of the year. The buyer needs money from the seller
for the days that the seller owned. $2800/365 = $7.67 per day. Jan = 31 days, Feb. = 28 days and March = 4 day total 63 X $7.67 = $483.21 that the seller owes for the time he
owned. NOTE: The amount taken from the seller is given to the buyer - it is the same amount. Use 3 decimal places and don't clear the calculator between steps.
9. John is a sales associate who has complaints against him for making false statements about the property and
for giving advice about the purchase contract. This is the third time these same violations have been investigated.
If John is found guilty of violating these two practices at the formal hearing, the maximum fine John can face is::
10,000
For second and subsequent violations, $2500 to $5000 fine and suspension for up to six years or revocation. The fine is $5000 maximum for each ottense.
10. A deed and a real estate purchase agreement would not be considered valid without:: an adequate legal description.
The property must be accurately described in any purchase agreement and deed, so there is no question about what is being transferred. In a deed, the legal description is in
the premises clause.
11. A mortgage is a legal contract with terms that benefit both the lender and the borrower. Which clause is
a benefit to the borrower and NOT to the lender✓✓ CORRECT ANSWER The Defeasance clause
If the borrower defaults, the lender can call the balance due; the maintenance clause required the borrower to keep the property in good condition, and the alienation clause
prevents the sale to another borrower. The defeasance clause requires the lender to record a document when the loan is paid - killing the lien.
