Colibri Real Estate Final Exam 2027 | Practice Questions and
Verified Answers | Graded A+
Question 1.
Absolute Auction .
Answer: An auction where the property is sold to the highest qualified bidder;
there is no minimum bid or reserve or right of confirmation. Also called
Without Reserve.
Question 2.
Abstract of Title .
Answer: A brief, chronological summary of the recorded documents affecting
title to a particular parcel of real property.
Question 3.
Acceleration Clause .
Answer: A contract clause giving the lender the right to declare the entire loan
amount due immediately because of borrower's default, or other reasons in
the contract.
Question 4.
Acceptance .
Answer: When a party agrees to the terms of an offer to enter into a contract,
thereby creating a binding contract.
Question 5.
Accession .
Answer: The acquisition of title to land by its addition to real estate already
owned, through human actions or natural processes.
Question 6.
Accounting .
Answer: In an agency relationship, the agent's fiduciary duty to the principal
to strictly account for all monies received.
• Accretion . Answer: A gradual addition to dry land by the forces of nature, as
when the tide deposits water-borne sediment on shoreline property.
,Question 7.
Accrued .
Answer: an accumulation
Question 8.
Accrued Expense .
Answer: Item on a settlement statement for which the cost has been incurred,
but the expense has not yet been paid. Such expenses are considered to be
paid in arrears.
Question 9.
Acknowledgement .
Answer: Recognition of validity; a document signers declaration to an
authorized official (usually notary public) that he is signing voluntarily
Question 10.
Acre .
Answer: A measure of land equal to 43,560 square feet. One square mile
contains 640 acres.
Question 11.
Actionable Fraud .
Answer: Fraud that meets certain criteria, so that a victim can successfully
sue. The victim must prove the defendant concealed material facts or made
false statements (intentionally or negligently) with the intent to induce the
victim to enter a transaction, and the victim was harmed by relying on
misrepresentations.
Question 12.
Actual Eviction .
Answer: The legal process of forcing someone off of a property or preventing
someone from re-entering the property
• Actual Fraud . Answer: An intentional misrepresentation or concealment of a
material fact; when a person actively conceals material information or makes
statements that he knows are false or misleading.
Question 13.
Actual Notice .
,Answer: Personal knowledge of a fact, rather than knowledge imputed or
inferred by law
Question 14.
Ad Valorem .
Answer: Latin for according to value
Question 15.
Adequate Consideration .
Answer: Consideration that is comparable in value to the consideration the
other party to the contract is giving.
Question 16.
Adjustable rate mortgage (ARM) .
Answer: A type of loan structure that permits the lender to periodically
change or vary the interest rate charged, based on a standard index.
Question 17.
Administrator .
Answer: A person appointed by the probate court to manage and distribute
the estate of a deceased person when no executor is named in the will or
there is no will.
Question 18.
Adverse Possession .
Answer: The actual, open, notorious, hostile, and continuous possession of
another's land under a claim of title. Possession for a statutory period may be
a means of acquiring title.
Question 19.
Affidavit of title .
Answer: A statement, sworn in front of a notary public or other authorized
official, by the seller or grantor of property that identifies the grantor,
identifies the grantor's marital status, and certifies that the grantor has no
new judgments, liens, divorces, unrecorded deeds, or other potential title
defects since the title examination was completed. It also certifies that the
grantor is indeed in possession of the property.
, Question 20.
Affiliated business arrangement (ABA) .
Answer: A situation where a person in a position to refer settlement
services-or an associate of that person-has either an affiliate relationship with
or a direct or beneficial ownership interest of more than 1% in a provider of
settlement services and who then refers business to that provider or in some
way influences the selection of that provider.
Question 21.
Agency .
Answer: A relationship of trust created when one person (the principal) gives
another person (the agent) the right to represent the principal in dealings
with third parties.
Question 22.
Agency coupled with an interest .
Answer: A situation in which the agent has a personal interest in the subject
of the agency, as when one co-owner has been authorized by the others to sell
their property.
Question 23.
Aggregate rent .
Answer: The total rent for the full term of the lease.
Question 24.
Air rights .
Answer: The right to undisturbed use and control of the airspace over a parcel
of land (within reasonable limits for air travel) may be transferred separately
from the land.
• Alienation . Answer: The transfer of ownership or an interest in property
from one person to another, by any means.
Question 25.
Alienation Clause .
Answer: A mortgage clause allowing the lender to demand the full and
immediate payment of the mortgage because the owner transferred or
pledged to transfer ownership of the property. Also called Due on Sale Clause.
Verified Answers | Graded A+
Question 1.
Absolute Auction .
Answer: An auction where the property is sold to the highest qualified bidder;
there is no minimum bid or reserve or right of confirmation. Also called
Without Reserve.
Question 2.
Abstract of Title .
Answer: A brief, chronological summary of the recorded documents affecting
title to a particular parcel of real property.
Question 3.
Acceleration Clause .
Answer: A contract clause giving the lender the right to declare the entire loan
amount due immediately because of borrower's default, or other reasons in
the contract.
Question 4.
Acceptance .
Answer: When a party agrees to the terms of an offer to enter into a contract,
thereby creating a binding contract.
Question 5.
Accession .
Answer: The acquisition of title to land by its addition to real estate already
owned, through human actions or natural processes.
Question 6.
Accounting .
Answer: In an agency relationship, the agent's fiduciary duty to the principal
to strictly account for all monies received.
• Accretion . Answer: A gradual addition to dry land by the forces of nature, as
when the tide deposits water-borne sediment on shoreline property.
,Question 7.
Accrued .
Answer: an accumulation
Question 8.
Accrued Expense .
Answer: Item on a settlement statement for which the cost has been incurred,
but the expense has not yet been paid. Such expenses are considered to be
paid in arrears.
Question 9.
Acknowledgement .
Answer: Recognition of validity; a document signers declaration to an
authorized official (usually notary public) that he is signing voluntarily
Question 10.
Acre .
Answer: A measure of land equal to 43,560 square feet. One square mile
contains 640 acres.
Question 11.
Actionable Fraud .
Answer: Fraud that meets certain criteria, so that a victim can successfully
sue. The victim must prove the defendant concealed material facts or made
false statements (intentionally or negligently) with the intent to induce the
victim to enter a transaction, and the victim was harmed by relying on
misrepresentations.
Question 12.
Actual Eviction .
Answer: The legal process of forcing someone off of a property or preventing
someone from re-entering the property
• Actual Fraud . Answer: An intentional misrepresentation or concealment of a
material fact; when a person actively conceals material information or makes
statements that he knows are false or misleading.
Question 13.
Actual Notice .
,Answer: Personal knowledge of a fact, rather than knowledge imputed or
inferred by law
Question 14.
Ad Valorem .
Answer: Latin for according to value
Question 15.
Adequate Consideration .
Answer: Consideration that is comparable in value to the consideration the
other party to the contract is giving.
Question 16.
Adjustable rate mortgage (ARM) .
Answer: A type of loan structure that permits the lender to periodically
change or vary the interest rate charged, based on a standard index.
Question 17.
Administrator .
Answer: A person appointed by the probate court to manage and distribute
the estate of a deceased person when no executor is named in the will or
there is no will.
Question 18.
Adverse Possession .
Answer: The actual, open, notorious, hostile, and continuous possession of
another's land under a claim of title. Possession for a statutory period may be
a means of acquiring title.
Question 19.
Affidavit of title .
Answer: A statement, sworn in front of a notary public or other authorized
official, by the seller or grantor of property that identifies the grantor,
identifies the grantor's marital status, and certifies that the grantor has no
new judgments, liens, divorces, unrecorded deeds, or other potential title
defects since the title examination was completed. It also certifies that the
grantor is indeed in possession of the property.
, Question 20.
Affiliated business arrangement (ABA) .
Answer: A situation where a person in a position to refer settlement
services-or an associate of that person-has either an affiliate relationship with
or a direct or beneficial ownership interest of more than 1% in a provider of
settlement services and who then refers business to that provider or in some
way influences the selection of that provider.
Question 21.
Agency .
Answer: A relationship of trust created when one person (the principal) gives
another person (the agent) the right to represent the principal in dealings
with third parties.
Question 22.
Agency coupled with an interest .
Answer: A situation in which the agent has a personal interest in the subject
of the agency, as when one co-owner has been authorized by the others to sell
their property.
Question 23.
Aggregate rent .
Answer: The total rent for the full term of the lease.
Question 24.
Air rights .
Answer: The right to undisturbed use and control of the airspace over a parcel
of land (within reasonable limits for air travel) may be transferred separately
from the land.
• Alienation . Answer: The transfer of ownership or an interest in property
from one person to another, by any means.
Question 25.
Alienation Clause .
Answer: A mortgage clause allowing the lender to demand the full and
immediate payment of the mortgage because the owner transferred or
pledged to transfer ownership of the property. Also called Due on Sale Clause.
