Colibri Real Estate Exam 2025 With
100% Correct Answers
What is the Asset Managers role when managing groups of properties in real estate? - correct
answers ✔✔Their role is to achieve the investment objectives of the clients, as opposed to
managing day-to-day operations.
What types of professionals are involved in the transfer of rights and interests in real estate? -
correct answers ✔✔Real estate brokers and salespersons, mortgage brokers, mortgage bankers,
appraisers, insurance companies, and title companies.
Property is classified into what three types? - correct answers ✔✔-Residential
-Commercial
-Investment
What is the mortgage banker's role in the lending process? - correct answers ✔✔They sell and
service the loans
How are mortgage brokers compensated? - correct answers ✔✔By bringing borrowers and
lenders together.
Explain the fee advisory relationship a broker would have with his client. - correct answers
✔✔In the advisory relationship, the broker works on identified real estate tasks or projects in in
exchange for a fee, salary, or retainer. The fee advisor may or may not focus on completing a
transaction.
Explain ARELLO's function. What does the ARELLO acronym stand for? - correct answers ✔✔The
Texas Real Estate Commission (TREC), as a state agency, is a member of ARELLO, the Association
,of Real Estate License Law Officials. ARELLO is an international association of real estate
regulators. This international group promotes consistent policies and standards for license law
and enforcement of license law.
How many members are on the Commission and who appoints them? - correct answers ✔✔The
commission is comprised of nine members. That includes six brokers and three members of the
general public. The governor appoints all members.
What is the definition of market equilibrium? - correct answers ✔✔Market equilibrium: a
market tends toward a state of equilibrium in which supply equals demand.
What is the definition of price? - correct answers ✔✔Price is the amount of money or other
asset that a buyer has agreed to pay, and the seller has agreed to accept to complete the
exchange of a good or service.
The value of something is based on the answers to what four questions? - correct answers
✔✔1.How much do I desire it?
2.How useful is it?
3.How scarce is it?
4.Am I able to pay for it?
What are the costs that a supplier may incur to produce goods or services? - correct answers
✔✔Costs may include those expenses necessary to generate and deliver the item to the
market.
Define supply and demand - correct answers ✔✔Supply is the quantity of a product or service
available for sale, lease, or trade at any given time.
Demand is the quantity of a product or service that is desired for purchase, lease, or trade at
any given time.
,What happens to a price if the supply increases relative to the demand? - correct answers
✔✔The price generally decreases.
What is meant by a state of market equilibrium? - correct answers ✔✔Supply equals demand,
and price, cost, and value are identical.
In describing the real estate market, several economic characteristics of real estate are: - correct
answers ✔✔1. Subject to the laws of supply and demand
2. Governed in the market by the price mechanism
3. Influenced by the producer's costs to bring the product to market
4. Influenced by the determinants of value (utility, scarcity, desire, and purchasing power)
What industry does total employment in a market place include - correct answers ✔✔-Base
-Secondary
-Support
The number of persons employed in the businesses that represent the economic foundation of
the area is called what? - correct answers ✔✔Base Employment
How is the demand for office and industrial real estate calculated? - correct answers ✔✔By
identifying employment growth or shrinkage in a market, then multiplying the employment
change times the average area of floor space a typical employee uses
What causes vacancy to rise and prices to fall until supply-demand equilibrium results? - correct
answers ✔✔New Construction
In recent years, international economic trends: - correct answers ✔✔Have Increasingly
Influenced local real estate markets.
, The term used to describe what occurs when a property becomes occupied over a period of
time is called what? - correct answers ✔✔Absorption
TREC consists of how many members? - correct answers ✔✔Nine members—six licensed
brokers and three members of the public
how many members?
How long does the term of a commission member last and when does a term expire? - correct
answers ✔✔Commission members serve staggered six-year terms, with the terms of three
members expiring January 31 of each odd-numbered year
A person is not eligible for appointment as a public member of the commission if that person
owns or controls, directly or indirectly: - correct answers ✔✔More than ten percent interest in a
business entity or other organization regulated by the commission, or receiving funds from the
commission.
When will a court order a payment to an aggrieved party from the Recovery Fund? - correct
answers ✔✔If a licensee cannot pay the full amount of the judgment ordered by the court, the
party may apply to the court in which the judgment was rendered for an order to pay the
balance due from the real estate recovery fund.
List two parties that do not need a license to sell real estate. - correct answers ✔✔1. An
auctioneer licensed under Chapter 1802 while conducting the sale of real estate by auction, if
the auctioneer does not perform another act of a broker or salesperson
2. Receivers, trustees in bankruptcy, administrators, executors, or guardians while acting under
a court order or under the authority of a will or trust instrument
Which of these people would need a real estate license?
100% Correct Answers
What is the Asset Managers role when managing groups of properties in real estate? - correct
answers ✔✔Their role is to achieve the investment objectives of the clients, as opposed to
managing day-to-day operations.
What types of professionals are involved in the transfer of rights and interests in real estate? -
correct answers ✔✔Real estate brokers and salespersons, mortgage brokers, mortgage bankers,
appraisers, insurance companies, and title companies.
Property is classified into what three types? - correct answers ✔✔-Residential
-Commercial
-Investment
What is the mortgage banker's role in the lending process? - correct answers ✔✔They sell and
service the loans
How are mortgage brokers compensated? - correct answers ✔✔By bringing borrowers and
lenders together.
Explain the fee advisory relationship a broker would have with his client. - correct answers
✔✔In the advisory relationship, the broker works on identified real estate tasks or projects in in
exchange for a fee, salary, or retainer. The fee advisor may or may not focus on completing a
transaction.
Explain ARELLO's function. What does the ARELLO acronym stand for? - correct answers ✔✔The
Texas Real Estate Commission (TREC), as a state agency, is a member of ARELLO, the Association
,of Real Estate License Law Officials. ARELLO is an international association of real estate
regulators. This international group promotes consistent policies and standards for license law
and enforcement of license law.
How many members are on the Commission and who appoints them? - correct answers ✔✔The
commission is comprised of nine members. That includes six brokers and three members of the
general public. The governor appoints all members.
What is the definition of market equilibrium? - correct answers ✔✔Market equilibrium: a
market tends toward a state of equilibrium in which supply equals demand.
What is the definition of price? - correct answers ✔✔Price is the amount of money or other
asset that a buyer has agreed to pay, and the seller has agreed to accept to complete the
exchange of a good or service.
The value of something is based on the answers to what four questions? - correct answers
✔✔1.How much do I desire it?
2.How useful is it?
3.How scarce is it?
4.Am I able to pay for it?
What are the costs that a supplier may incur to produce goods or services? - correct answers
✔✔Costs may include those expenses necessary to generate and deliver the item to the
market.
Define supply and demand - correct answers ✔✔Supply is the quantity of a product or service
available for sale, lease, or trade at any given time.
Demand is the quantity of a product or service that is desired for purchase, lease, or trade at
any given time.
,What happens to a price if the supply increases relative to the demand? - correct answers
✔✔The price generally decreases.
What is meant by a state of market equilibrium? - correct answers ✔✔Supply equals demand,
and price, cost, and value are identical.
In describing the real estate market, several economic characteristics of real estate are: - correct
answers ✔✔1. Subject to the laws of supply and demand
2. Governed in the market by the price mechanism
3. Influenced by the producer's costs to bring the product to market
4. Influenced by the determinants of value (utility, scarcity, desire, and purchasing power)
What industry does total employment in a market place include - correct answers ✔✔-Base
-Secondary
-Support
The number of persons employed in the businesses that represent the economic foundation of
the area is called what? - correct answers ✔✔Base Employment
How is the demand for office and industrial real estate calculated? - correct answers ✔✔By
identifying employment growth or shrinkage in a market, then multiplying the employment
change times the average area of floor space a typical employee uses
What causes vacancy to rise and prices to fall until supply-demand equilibrium results? - correct
answers ✔✔New Construction
In recent years, international economic trends: - correct answers ✔✔Have Increasingly
Influenced local real estate markets.
, The term used to describe what occurs when a property becomes occupied over a period of
time is called what? - correct answers ✔✔Absorption
TREC consists of how many members? - correct answers ✔✔Nine members—six licensed
brokers and three members of the public
how many members?
How long does the term of a commission member last and when does a term expire? - correct
answers ✔✔Commission members serve staggered six-year terms, with the terms of three
members expiring January 31 of each odd-numbered year
A person is not eligible for appointment as a public member of the commission if that person
owns or controls, directly or indirectly: - correct answers ✔✔More than ten percent interest in a
business entity or other organization regulated by the commission, or receiving funds from the
commission.
When will a court order a payment to an aggrieved party from the Recovery Fund? - correct
answers ✔✔If a licensee cannot pay the full amount of the judgment ordered by the court, the
party may apply to the court in which the judgment was rendered for an order to pay the
balance due from the real estate recovery fund.
List two parties that do not need a license to sell real estate. - correct answers ✔✔1. An
auctioneer licensed under Chapter 1802 while conducting the sale of real estate by auction, if
the auctioneer does not perform another act of a broker or salesperson
2. Receivers, trustees in bankruptcy, administrators, executors, or guardians while acting under
a court order or under the authority of a will or trust instrument
Which of these people would need a real estate license?
