COLIBRI REAL ESTATE CORRECT EXAMS ANSWERS
AND QUESTIONS SET A+
✔✔The sales contract between homeowner Paul and buyer Rachel indicates a March 1
closing date. The contract contains a "Time Is of the Essence" clause. On the morning
of March 1, Paul calls and tells Rachel that it's going to be a few days before he can
transfer title. As of March 2, this sales contract is - ✔✔void
✔✔Absent Party Clause - ✔✔Allows the buyer to accept an offer by telephone or other
non-signatory method, and later sign within a fixed timeframe
✔✔Certificate of Occupancy Clause - ✔✔Puts the seller on notice that if the municipality
requires evidence that the home is habitable, the seller must provide it
✔✔Inspection Clause - ✔✔Relates to systems such as electrical, plumbing, roofing, etc.
and specifies they are in adequate supply and working properly
✔✔Walk-Through Clause - ✔✔Allows the buyer the opportunity to view the home, and
accept (or not the condition and the purchase agreement
✔✔Adam and Jenny enter into an agreement wherein Adam will buy Jenny's house at
the asking price if Jenny will install a new roof and if Adam can qualify for a loan
sufficient to cover the purchase. Until the roof is installed and the financing obtained, the
contract is said to be - ✔✔executory
✔✔Something of value given to another to compensate them for entering into a contract
is termed - ✔✔consideration.
✔✔Once a contract is terminated, it is considered - ✔✔discharged.
✔✔Karen contracts with Dave to paint her house and garage. She gives him $500
before he begins the job with a promise of $2,000 more when he finishes. Dave paints
,the garage first, but then an early blizzard hits. Dave is not going to be able to finish the
job before he moves. This contract is - ✔✔executory.
✔✔Tom tells Betty that he will buy her house. She tells him that she'll sell the house to
him for $149,000, and they shake on it. This oral contract is - ✔✔unenforceable.
✔✔Joel wants to buy Maria's store, but he wants to include a statement in the purchase
contract that he will only do so if it passes a property inspection. What is this type of
statement added to the agreement called? - ✔✔contingency
✔✔A competitive market analysis is used to determine an approximate market value of
a home by comparing the subject property to other homes that have sold, are presently
for sale, or did not sell in a given area. - ✔✔true
✔✔Exclusive Right to Sell - ✔✔Regardless of who sells the property, the listing broker
will receive commission
✔✔Open Listing - ✔✔Non-exclusive listing given by a seller to one or more brokers as
he chooses; no single agency has an exclusive on selling the property
✔✔An open listing is likely to result in better service since there are more brokers
working for the seller. - ✔✔false
✔✔Net Listing - ✔✔The seller sets a price he's willing to accept, broker receives excess
amount as commission
✔✔A state law that requires all real estate purchase agreements be in writing to be
enforceable by the courts is the - ✔✔statute of frauds.
✔✔Exclusive Agency - ✔✔The listing broker will receive commission for the sale unless
the owner sells it himself
✔✔The average expiration date is usually _______ days after the listing agreement is
signed. - ✔✔90 to 120
✔✔Broker Liz has a listing agreement to find a ready, willing, and able buyer for
Chuck's house. This gives her implied authority to include his house on her Sunday
morning "Real Estate Roundup" television show. - ✔✔False
✔✔With the exclusive buyer agency agreement, the broker's compensation is only paid
if the broker locates a property the buyer purchases. - ✔✔false
,✔✔A buyer agency agreement is an employment contract between a buyer and a
broker - ✔✔true
✔✔Which of the following questions can be asked of the property owner when working
to obtain a listing agreement? Select all correct responses. - ✔✔Have you sold a house
before?
How long have you lived here?
What were some positive and negative experiences with the property or other agents?
Why are you selling?
✔✔An agreement that ensures the broker gets paid even if the buyer locates and
purchases a home without assistance from the broker is a(n) - ✔✔exclusive buyer
agency agreement.
✔✔You're the agent for the seller. When showing the house, the seller tied a red sign to
the dining room chandelier stating that it was not included; this was also indicated in the
MLS. An offer from the buyer comes in. It does not mention the chandelier. Should you
revise the offer to indicate that the chandelier is not included? - ✔✔yes
✔✔Janine's client, Jeff, asked her to add a rider to his purchase agreement. Is Janine
permitted to do this? - ✔✔no
✔✔Which is typically an element of a pre-printed purchase contract? Select all correct
responses. - ✔✔conditions affecting the property title
deposit or down payment procedures
type of deed to be conveyedWhich is typically an element of a pre-printed purchase
contract? Select all correct responses.
✔✔Buyer may nullify the contract within _______ business days after receipt of a
disclosure form or amended disclosure form that discloses a defect. - ✔✔2
✔✔___________ defects are defects that are not plainly observable or that would not
be discovered in a reasonable inspection. - ✔✔
✔✔Fiona is a seller's agent for Jeremiah, whose house is listed at $320,000. Lawrence
came to an open house, and really liked the property, but thought it was significantly
overpriced. He contacted Fiona with an offer of $190,000. Fiona knew that Jeremiah
would never accept such an insulting offer, and so she is not required to tell him about
it. - ✔✔false
✔✔Attorney - ✔✔Provides representation; explains documents
✔✔Buyer - ✔✔Pays additional costs, if necessary
, ✔✔Seller - ✔✔Signs the deed
✔✔Settlement Officer - ✔✔Calculates the debits and credits
✔✔Lenny was supposed to receive $120,000 from the sale of his house. However, he
agreed to pay the buyer an allowance of $700 to have the house painted. How will that
$700 show up on a settlement statement? - ✔✔debit to Lenny and credit to buyer
✔✔Lois is buying a condominium. Settlement is March 31. The seller pays condo fees
on the first of every month. How will these fees appear on the settlement statement? -
✔✔They will not appear on the settlement statement.
✔✔Which document provides a summary of a property's entire title history? -
✔✔Abstract
✔✔Settlement statements - ✔✔provide a financial accounting of a buyer's closing costs.
✔✔Carlos was closing on a house he's purchasing for $150,000. The sellers agreed to
reimburse him $500 for a termite inspection and $500 for a damaged door. Carlos also
negotiated to pay the sellers $500 more if they would leave the draperies and blinds.
With these credits and debits considered, how much does Carlos owe on the property?
- ✔✔$149,500
✔✔What is the document that transfers title of personal property from one person to the
other? - ✔✔Bill of Sale
✔✔A debit is NOT - ✔✔a sum of money that is to be received.
✔✔Homeowner's insurance might be an example of a(n) - ✔✔prepaid item on a
settlement statement.
✔✔Which is the last step in the process of conducting a closing? - ✔✔Commission is
paid
✔✔What is the title company's primary responsibility? - ✔✔Researching the title
✔✔Mike pays a special assessment tax of $120 every January for street and sidewalk
maintenance and lights. When he sold his house to Sharon on September 30, the
special assessment tax showed up on the settlement statement as a - ✔✔$30 credit to
Mike.
✔✔A closing agent cannot be a representative from the lender. - ✔✔false
AND QUESTIONS SET A+
✔✔The sales contract between homeowner Paul and buyer Rachel indicates a March 1
closing date. The contract contains a "Time Is of the Essence" clause. On the morning
of March 1, Paul calls and tells Rachel that it's going to be a few days before he can
transfer title. As of March 2, this sales contract is - ✔✔void
✔✔Absent Party Clause - ✔✔Allows the buyer to accept an offer by telephone or other
non-signatory method, and later sign within a fixed timeframe
✔✔Certificate of Occupancy Clause - ✔✔Puts the seller on notice that if the municipality
requires evidence that the home is habitable, the seller must provide it
✔✔Inspection Clause - ✔✔Relates to systems such as electrical, plumbing, roofing, etc.
and specifies they are in adequate supply and working properly
✔✔Walk-Through Clause - ✔✔Allows the buyer the opportunity to view the home, and
accept (or not the condition and the purchase agreement
✔✔Adam and Jenny enter into an agreement wherein Adam will buy Jenny's house at
the asking price if Jenny will install a new roof and if Adam can qualify for a loan
sufficient to cover the purchase. Until the roof is installed and the financing obtained, the
contract is said to be - ✔✔executory
✔✔Something of value given to another to compensate them for entering into a contract
is termed - ✔✔consideration.
✔✔Once a contract is terminated, it is considered - ✔✔discharged.
✔✔Karen contracts with Dave to paint her house and garage. She gives him $500
before he begins the job with a promise of $2,000 more when he finishes. Dave paints
,the garage first, but then an early blizzard hits. Dave is not going to be able to finish the
job before he moves. This contract is - ✔✔executory.
✔✔Tom tells Betty that he will buy her house. She tells him that she'll sell the house to
him for $149,000, and they shake on it. This oral contract is - ✔✔unenforceable.
✔✔Joel wants to buy Maria's store, but he wants to include a statement in the purchase
contract that he will only do so if it passes a property inspection. What is this type of
statement added to the agreement called? - ✔✔contingency
✔✔A competitive market analysis is used to determine an approximate market value of
a home by comparing the subject property to other homes that have sold, are presently
for sale, or did not sell in a given area. - ✔✔true
✔✔Exclusive Right to Sell - ✔✔Regardless of who sells the property, the listing broker
will receive commission
✔✔Open Listing - ✔✔Non-exclusive listing given by a seller to one or more brokers as
he chooses; no single agency has an exclusive on selling the property
✔✔An open listing is likely to result in better service since there are more brokers
working for the seller. - ✔✔false
✔✔Net Listing - ✔✔The seller sets a price he's willing to accept, broker receives excess
amount as commission
✔✔A state law that requires all real estate purchase agreements be in writing to be
enforceable by the courts is the - ✔✔statute of frauds.
✔✔Exclusive Agency - ✔✔The listing broker will receive commission for the sale unless
the owner sells it himself
✔✔The average expiration date is usually _______ days after the listing agreement is
signed. - ✔✔90 to 120
✔✔Broker Liz has a listing agreement to find a ready, willing, and able buyer for
Chuck's house. This gives her implied authority to include his house on her Sunday
morning "Real Estate Roundup" television show. - ✔✔False
✔✔With the exclusive buyer agency agreement, the broker's compensation is only paid
if the broker locates a property the buyer purchases. - ✔✔false
,✔✔A buyer agency agreement is an employment contract between a buyer and a
broker - ✔✔true
✔✔Which of the following questions can be asked of the property owner when working
to obtain a listing agreement? Select all correct responses. - ✔✔Have you sold a house
before?
How long have you lived here?
What were some positive and negative experiences with the property or other agents?
Why are you selling?
✔✔An agreement that ensures the broker gets paid even if the buyer locates and
purchases a home without assistance from the broker is a(n) - ✔✔exclusive buyer
agency agreement.
✔✔You're the agent for the seller. When showing the house, the seller tied a red sign to
the dining room chandelier stating that it was not included; this was also indicated in the
MLS. An offer from the buyer comes in. It does not mention the chandelier. Should you
revise the offer to indicate that the chandelier is not included? - ✔✔yes
✔✔Janine's client, Jeff, asked her to add a rider to his purchase agreement. Is Janine
permitted to do this? - ✔✔no
✔✔Which is typically an element of a pre-printed purchase contract? Select all correct
responses. - ✔✔conditions affecting the property title
deposit or down payment procedures
type of deed to be conveyedWhich is typically an element of a pre-printed purchase
contract? Select all correct responses.
✔✔Buyer may nullify the contract within _______ business days after receipt of a
disclosure form or amended disclosure form that discloses a defect. - ✔✔2
✔✔___________ defects are defects that are not plainly observable or that would not
be discovered in a reasonable inspection. - ✔✔
✔✔Fiona is a seller's agent for Jeremiah, whose house is listed at $320,000. Lawrence
came to an open house, and really liked the property, but thought it was significantly
overpriced. He contacted Fiona with an offer of $190,000. Fiona knew that Jeremiah
would never accept such an insulting offer, and so she is not required to tell him about
it. - ✔✔false
✔✔Attorney - ✔✔Provides representation; explains documents
✔✔Buyer - ✔✔Pays additional costs, if necessary
, ✔✔Seller - ✔✔Signs the deed
✔✔Settlement Officer - ✔✔Calculates the debits and credits
✔✔Lenny was supposed to receive $120,000 from the sale of his house. However, he
agreed to pay the buyer an allowance of $700 to have the house painted. How will that
$700 show up on a settlement statement? - ✔✔debit to Lenny and credit to buyer
✔✔Lois is buying a condominium. Settlement is March 31. The seller pays condo fees
on the first of every month. How will these fees appear on the settlement statement? -
✔✔They will not appear on the settlement statement.
✔✔Which document provides a summary of a property's entire title history? -
✔✔Abstract
✔✔Settlement statements - ✔✔provide a financial accounting of a buyer's closing costs.
✔✔Carlos was closing on a house he's purchasing for $150,000. The sellers agreed to
reimburse him $500 for a termite inspection and $500 for a damaged door. Carlos also
negotiated to pay the sellers $500 more if they would leave the draperies and blinds.
With these credits and debits considered, how much does Carlos owe on the property?
- ✔✔$149,500
✔✔What is the document that transfers title of personal property from one person to the
other? - ✔✔Bill of Sale
✔✔A debit is NOT - ✔✔a sum of money that is to be received.
✔✔Homeowner's insurance might be an example of a(n) - ✔✔prepaid item on a
settlement statement.
✔✔Which is the last step in the process of conducting a closing? - ✔✔Commission is
paid
✔✔What is the title company's primary responsibility? - ✔✔Researching the title
✔✔Mike pays a special assessment tax of $120 every January for street and sidewalk
maintenance and lights. When he sold his house to Sharon on September 30, the
special assessment tax showed up on the settlement statement as a - ✔✔$30 credit to
Mike.
✔✔A closing agent cannot be a representative from the lender. - ✔✔false
