COLIBRI SCHOOL EXAM NJ PRACTICE
QUESTIONS AND DETAILED SOLUTIONS
◉ standard of care.
Answer: the quality of service a normal person would expect from a
broker or salesperson
◉ disclosure.
Answer: agent's duty to pass on to the principal all the facts and
information obtained that could affect the principal's business or
decisions, whether or not the client asks
◉ subagent.
Answer: the salesperson's relationship to the principal as the agent
of the broker
◉ independent contractor.
Answer: pay own taxes, receive no insurance, get nothing from
brokerage that could be considered an employee benefit
◉ ready, willing and able buyer.
,Answer: one who is prepared to buy on the seller's terms, is
financially capable and is ready to take positive steps towards the
consummation of the transaction
◉ procuring cause.
Answer: the person who brings about a ready, willing and able buyer
or brings about a meeting of the minds
◉ meeting of the minds.
Answer: takes place when the parties are in agreement on price,
down payment and financing method
◉ consumer information statement.
Answer: a form of disclosure to all sellers, buyers, landlords and
tenants on the sale of all 1-4 family residential properties or vacant
one family lots. Describes the types of business relationships a real
estate agent can enter into with a client
◉ dual agency.
Answer: broker represents both parties in a transaction at the same
time
◉ disclosed dual agency.
Answer: legal as long as consent to dual agency agreement is signed
,◉ conflict of interest.
Answer: conflict between brokers own interest and that of the seller
◉ latent defect.
Answer: hidden defect not discoverable by ordinary inspection
◉ Megan's Law.
Answer: requires communities to be alerted to the presence of
convicted sexual offenders. Buyers can not get information until the
close of the sale
◉ puffing.
Answer: extravagant statements of opinion
◉ fraudulent misrepresentation.
Answer: deliberate lie intended to mislead someone
◉ innocent misrepresentation.
Answer: false statement by someone who believes it to be true and
is not expected to have expertise in the subject
, ◉ negligent misrepresentation.
Answer: false statements made by someone who should know better
◉ antitrust laws.
Answer: fdederal and state laws in regard to price fixing and
allocation of customers or markets
◉ errors and omissions insurance.
Answer: malpractice insurance for the real estate industry
◉ off site conditions.
Answer: not on the property purchased. New construction has 5
days for you to cancel the contract existing properties do not have a
similar right of rescission
◉ Civil Rights act of 1866.
Answer: Prohibits any discrimination based on race and color, no
exceptions
◉ Federal Fair Housing Act of 1968.
Answer: Unlawful to discriminate on the basis of race, color, religion
or national origin when selling or leasing residential properties.
Certain exemptions apply
QUESTIONS AND DETAILED SOLUTIONS
◉ standard of care.
Answer: the quality of service a normal person would expect from a
broker or salesperson
◉ disclosure.
Answer: agent's duty to pass on to the principal all the facts and
information obtained that could affect the principal's business or
decisions, whether or not the client asks
◉ subagent.
Answer: the salesperson's relationship to the principal as the agent
of the broker
◉ independent contractor.
Answer: pay own taxes, receive no insurance, get nothing from
brokerage that could be considered an employee benefit
◉ ready, willing and able buyer.
,Answer: one who is prepared to buy on the seller's terms, is
financially capable and is ready to take positive steps towards the
consummation of the transaction
◉ procuring cause.
Answer: the person who brings about a ready, willing and able buyer
or brings about a meeting of the minds
◉ meeting of the minds.
Answer: takes place when the parties are in agreement on price,
down payment and financing method
◉ consumer information statement.
Answer: a form of disclosure to all sellers, buyers, landlords and
tenants on the sale of all 1-4 family residential properties or vacant
one family lots. Describes the types of business relationships a real
estate agent can enter into with a client
◉ dual agency.
Answer: broker represents both parties in a transaction at the same
time
◉ disclosed dual agency.
Answer: legal as long as consent to dual agency agreement is signed
,◉ conflict of interest.
Answer: conflict between brokers own interest and that of the seller
◉ latent defect.
Answer: hidden defect not discoverable by ordinary inspection
◉ Megan's Law.
Answer: requires communities to be alerted to the presence of
convicted sexual offenders. Buyers can not get information until the
close of the sale
◉ puffing.
Answer: extravagant statements of opinion
◉ fraudulent misrepresentation.
Answer: deliberate lie intended to mislead someone
◉ innocent misrepresentation.
Answer: false statement by someone who believes it to be true and
is not expected to have expertise in the subject
, ◉ negligent misrepresentation.
Answer: false statements made by someone who should know better
◉ antitrust laws.
Answer: fdederal and state laws in regard to price fixing and
allocation of customers or markets
◉ errors and omissions insurance.
Answer: malpractice insurance for the real estate industry
◉ off site conditions.
Answer: not on the property purchased. New construction has 5
days for you to cancel the contract existing properties do not have a
similar right of rescission
◉ Civil Rights act of 1866.
Answer: Prohibits any discrimination based on race and color, no
exceptions
◉ Federal Fair Housing Act of 1968.
Answer: Unlawful to discriminate on the basis of race, color, religion
or national origin when selling or leasing residential properties.
Certain exemptions apply
