Real Estate Colibri Practice Exam 2025
With 100% Correct Answers
Which item below can help protect against a home with a listed incorrect street address or legal
description in public records? - correct answers ✔✔Standard coverage title insurance policy and
extended coverage title insurance policy
Robert owns his property and enjoys the full bundle of rights. Can he use his property as
collateral for debt? - correct answers ✔✔Yes. Robert can encumber his property
Which location is an industrial coal plant least likely to be located? - correct answers
✔✔Adjacent to an elementary school
What is the least likely answer needed in a "legal consent" scenario? - correct answers
✔✔Contract
What is the name used to describe the fact that a client must have consent, free will, and act
without duress when entering a contract or business relationship? - correct answers ✔✔Legal
Consent
Mortgage lenders are required to disclose financing costs and annual percentage rate to the
borrower under which law or regulation? - correct answers ✔✔Truth in Lending
Earl orally agreed to an 18-month lease with landlord Blake. Is this contract enforceable? -
correct answers ✔✔No, all leases for longer than one year must be in writing to be enforceable
Jessica can only afford a 7% down payment on her new cottage. What will she be required to
purchase at closing? - correct answers ✔✔Private Mortgage Insurance
,What happens if the Grievance Committee finds that there is a potential ethics violation and
that the complaint has been appropriately filed? - correct answers ✔✔The complaint is
forwarded to a hearing panel of the Professional Standards Committee
Listing agents must present ________. - correct answers ✔✔All formal and informal offers
Which of the following principles are included in the Preamble to the Code of Ethics? - correct
answers ✔✔Honesty and Integrity, Fairness, and Moral conduct in business relations
What type of agency cannot be revoked by the principal, nor is terminated if the principal dies?
- correct answers ✔✔Agency coupled with an interest
Who can train office staff at a brokerage firm in weekly meetings? - correct answers
✔✔Principal Broker, associate brokers, and outside social media marketers
What is the minimum earnest money deposit that a Buyer can offer to purchase a listed home?
- correct answers ✔✔Zero dollars
Which action does an escrow officer typically work on in a home sale transaction? - correct
answers ✔✔Collects earnest money deposits, orders title insurance, and gathers third party
inspection reports
What was the original name of the National Association of REALTORS® when it was first
founded? - correct answers ✔✔The National Association of Real Estate Exchanges
What is "one click away" as it relates to the real estate profession? - correct answers ✔✔When
a viewer online can find the agent's contact information with just one click of the mouse,
smartphone, or keyboard
, A broker who spends their client's $10,000 earnest money deposit on their office's monthly
expenses such as rent, utilities, and has engaged in the act of what? - correct answers
✔✔Conversion and Criminal Fraud
Broker Joy just signed a listing agreement with a seller. When should Joy schedule an office
tour? - correct answers ✔✔Within a week after the listing is taken
Under the Rectangular survey system, which direction do the principal meridian lines run on a
map? - correct answers ✔✔North-South
According to Article 3, what does cooperating with other brokers involve? - correct answers
✔✔Sharing information about listings and making listings available for showing.
Which of the following would be a type of authorized discipline that may be issued by NAR in
the case of an ethics violation? - correct answers ✔✔Letter of Warning or Letter of Reprimand
When an agent deposits their buyer's escrow funds into their personal account, then what is
the action referred to under Agency Law? - correct answers ✔✔Commingling
The Statute of Frauds usually requires or applies to _______. - correct answers ✔✔Written
contracts, mutually voluntary legal agreements, and contracts without duress
What does title insurance best protect against? - correct answers ✔✔past histories
Who must a principal broker supervise in a real estate office? - correct answers ✔✔All licensees
affiliated to the principal broker and all other unlicensed employees at that office.
A residential REALTOR® with no commercial real experience has a new client who wants her to
list his commercial real estate. What must the REALTOR® do before taking the listing? - correct
answers ✔✔Inform the client of her lack of expertise in commercial real estate.
With 100% Correct Answers
Which item below can help protect against a home with a listed incorrect street address or legal
description in public records? - correct answers ✔✔Standard coverage title insurance policy and
extended coverage title insurance policy
Robert owns his property and enjoys the full bundle of rights. Can he use his property as
collateral for debt? - correct answers ✔✔Yes. Robert can encumber his property
Which location is an industrial coal plant least likely to be located? - correct answers
✔✔Adjacent to an elementary school
What is the least likely answer needed in a "legal consent" scenario? - correct answers
✔✔Contract
What is the name used to describe the fact that a client must have consent, free will, and act
without duress when entering a contract or business relationship? - correct answers ✔✔Legal
Consent
Mortgage lenders are required to disclose financing costs and annual percentage rate to the
borrower under which law or regulation? - correct answers ✔✔Truth in Lending
Earl orally agreed to an 18-month lease with landlord Blake. Is this contract enforceable? -
correct answers ✔✔No, all leases for longer than one year must be in writing to be enforceable
Jessica can only afford a 7% down payment on her new cottage. What will she be required to
purchase at closing? - correct answers ✔✔Private Mortgage Insurance
,What happens if the Grievance Committee finds that there is a potential ethics violation and
that the complaint has been appropriately filed? - correct answers ✔✔The complaint is
forwarded to a hearing panel of the Professional Standards Committee
Listing agents must present ________. - correct answers ✔✔All formal and informal offers
Which of the following principles are included in the Preamble to the Code of Ethics? - correct
answers ✔✔Honesty and Integrity, Fairness, and Moral conduct in business relations
What type of agency cannot be revoked by the principal, nor is terminated if the principal dies?
- correct answers ✔✔Agency coupled with an interest
Who can train office staff at a brokerage firm in weekly meetings? - correct answers
✔✔Principal Broker, associate brokers, and outside social media marketers
What is the minimum earnest money deposit that a Buyer can offer to purchase a listed home?
- correct answers ✔✔Zero dollars
Which action does an escrow officer typically work on in a home sale transaction? - correct
answers ✔✔Collects earnest money deposits, orders title insurance, and gathers third party
inspection reports
What was the original name of the National Association of REALTORS® when it was first
founded? - correct answers ✔✔The National Association of Real Estate Exchanges
What is "one click away" as it relates to the real estate profession? - correct answers ✔✔When
a viewer online can find the agent's contact information with just one click of the mouse,
smartphone, or keyboard
, A broker who spends their client's $10,000 earnest money deposit on their office's monthly
expenses such as rent, utilities, and has engaged in the act of what? - correct answers
✔✔Conversion and Criminal Fraud
Broker Joy just signed a listing agreement with a seller. When should Joy schedule an office
tour? - correct answers ✔✔Within a week after the listing is taken
Under the Rectangular survey system, which direction do the principal meridian lines run on a
map? - correct answers ✔✔North-South
According to Article 3, what does cooperating with other brokers involve? - correct answers
✔✔Sharing information about listings and making listings available for showing.
Which of the following would be a type of authorized discipline that may be issued by NAR in
the case of an ethics violation? - correct answers ✔✔Letter of Warning or Letter of Reprimand
When an agent deposits their buyer's escrow funds into their personal account, then what is
the action referred to under Agency Law? - correct answers ✔✔Commingling
The Statute of Frauds usually requires or applies to _______. - correct answers ✔✔Written
contracts, mutually voluntary legal agreements, and contracts without duress
What does title insurance best protect against? - correct answers ✔✔past histories
Who must a principal broker supervise in a real estate office? - correct answers ✔✔All licensees
affiliated to the principal broker and all other unlicensed employees at that office.
A residential REALTOR® with no commercial real experience has a new client who wants her to
list his commercial real estate. What must the REALTOR® do before taking the listing? - correct
answers ✔✔Inform the client of her lack of expertise in commercial real estate.
