COLIBRI REAL ESTATE TEST PAPER EXAMS 2025/2026
QUESTIONS WITH ANSWERS RATED A+
✔✔The agreement of sale should provide that if the property is damaged or destroyed
by fire before the deal is consummated, the loss will fall upon the - ✔✔the seller
The "risk of loss" is transferred to the buyer upon the signing of the sales contract.
Thus, the sales contract should include a clause that would keep the risk of loss on the
seller and require the seller to maintain insurance. If this clause were not inserted in the
sales contract, then the buyer would be responsible for any damage to the property and
still have to buy the property, regardless of condition.
✔✔A lead-based paint disclosure form is required for all residential dwellings built
before January 1, 1978. When applicable, who must sign the form? - ✔✔buyer, seller,
and both agents
All parties must sign the disclosure form. Both agents are equally liable for compliance.
✔✔A legal property description in Georgia that identifies boundaries and is commonly
used to survey property is known as: - ✔✔System of metes and bounds
The principal method of delineating property boundaries for surveys and creating a legal
description for property in Georgia is called the metes and bounds system. The short
form, also known as lot, block system, is the other acceptable legal description for
property in Georgia.
✔✔What is an involuntary specific lien? - ✔✔mechanic's lien
The IRS lien is a general involuntary lien against all items owned by an individual
(including, but not limited to, real estate). The mechanic's lien is an involuntary specific
lien against property worked on by a contractor. The mortgage is a voluntary specific
lien given freely by the landowner to the buyer. The easement is not a lien, although it is
an encumbrance on the property.
✔✔Which statement is TRUE? - ✔✔You receive stock in a cooperative and a deed in a
condominium
Condominium owners receive a deed and cooperative owners buy stock and receive a
proprietary lease.
✔✔What is the gross commission on a property that sold for $450,000 with a rate of
commission of 6%? - ✔✔$27,000
$450,000 x .06 = $27,000
,✔✔Which would be an example of voluntary alienation? - ✔✔sale
Eminent domain is the government's right to take private property with just
compensation and is an involuntary transfer of title. Escheat is when one dies without a
will and without heirs, so title involuntarily transfers to the state. Adverse possession is
acquiring someone else's title through open notorious, exclusive, and continuous use of
the property (also involuntary). The sale of property is usually a voluntary event.
✔✔At a listing appointment, Patty promises the sellers they will get four open houses a
month. The seller signs the agreement. In the first month of marketing, Patty's husband
becomes ill and Patty cancels the open house. The seller got only two open houses that
month. Which best describes the situation? - ✔✔Patty is breaching her broker's duty of
accountability
Agents are accountable to the client for their actions. If the seller was promised four
open houses a month, that is what the seller should get.
✔✔Regarding the handling of earnest money in a Georgia real estate contract, which of
the following is true? - ✔✔The amount of earnest money and who will hold these funds
is determined by contract agreement
Items other than legal tender (money) may suffice as earnest money as long as the item
is identified and assigned a monetary value in writing. Earnest money may be held by
whomever is contractually agreed upon, including either the listing broker or the selling
broker. If earnest money is deposited in an interest-bearing trust account, then all
parties to the contract must agree in writing as to who receives the interest earned.
✔✔What purpose does the Superfund serve? - ✔✔It allows the EPA to clean up
abandoned waste sites and requires the responsible party to cover the costs of doing so
The Clean Water Act deals with water quality. The Clean Air Act prevents air pollution.
The Lead-Based Paint Hazard Reduction Act prevents lead poisoning. The Superfund
allows the EPA to clean up such sites and compels responsible parties to perform clean
ups or reimburse the government for EPA clean ups.
✔✔A broker has a policy that agents will not be dual agents in in-company transactions
or when the agents sell their own listings. Which would a potential buyer be to the listing
agent if the buyer wants to buy the agent's listing? - ✔✔customer
A dual agent is a broker or salesperson who represents both buyer and seller. A client is
a party represented by a broker. An agent is someone a client hires to represent them
like a broker. The customer is the party in the transaction that is not represented.
,✔✔Seller and buyer entered into an instrument of conveyance in which the buyer
immediately received legal title. Which instrument would have been used by the
parties? - ✔✔deed
An offer cannot become a contract until the offer is accepted. An option may never be
exercised. A land contract only conveys equitable title. A deed is the instrument that
conveys legal title.
✔✔An attorney refers a friend looking to purchase a home to a broker. Subsequently,
the broker contacts the attorney's friend and assists in finding a property for the friend to
buy. At what point might the broker be allowed to compensate the attorney for the
referral? - ✔✔At no time
License law in Georgia allows a broker to pay a referral fee ONLY to another real estate
broker.
✔✔A real estate listing is an agreement between - ✔✔seller and broker
The listing agreement is an agreement between broker and seller; the broker is entitled
to a commission when a ready, willing, and able buyer makes an offer acceptable to the
seller.
✔✔Executor Fred calls Agent Tom to list a vacant tract of land, instructing him to list the
land for $700,000. Several weeks later, Agent Tom becomes aware of a developer who
would pay as much as $1,000,000 for the property. Tom thereupon submits a full-price
offer to the owner and purchases the property. Tom then resells the property to the
developer and pockets a $300,000 profit. Which statement is TRUE? - ✔✔Tom violated
the law by not providing notice of information that would affect Fred
Tom had a duty to inform Fred of the true value of the property. This would be known as
self-dealing.
✔✔Point of beginning refers to - ✔✔the first corner of the parcel to be surveyed.
The point of beginning is where a metes and bound description starts and ends.
✔✔An individual has operated a service station in Georgia for years, in an area recently
rezoned for residential use. After the gas station was virtually demolished by a severe
storm, what would be true? - ✔✔The owner could only rebuild the gas station if the
location was spot zoned for commercial use or if the owner was granted a variance
Under these circumstances, the owner had been operating the service station under
non-conforming use; when the property was destroyed, it would have to be rebuilt to
comply with current zoning laws, unless the location was spot zoned for commercial or
, the owner was granted a variance from the zoning board. The owner would not be
entitled to compensation for the loss of the business.
✔✔Who is NOT an agent or subagent? - ✔✔a non-licensed personal assistant of an
agent
A broker, property manager, and salesperson would either be considered an agent, or
subagent. An unlicensed assistant can only do administrative tasks for the agent.
✔✔With the intention of offering a homebuyer some assurances about the physical
condition of the property under contract, the customary residential sales agreement
form in Georgia makes the buyer's contract commitment contingent on a(n): -
✔✔Inspection by a qualified home inspector
Although many contingencies may be a part of any real estate sales contract, the
standard Georgia real estate contract includes a home inspection contingency that
specifically affords the buyer some degree of confidence regarding the structural
condition of the property.
✔✔A section of a township contains - ✔✔640 Acres
An acre contains 43,560 square feet, which is equal to 160 square rods. A mile contains
5,280 feet, which is equal to 1,760 yards, or 320 rods. Each township contains 36
sections. Each section is one square mile, or 640 acres.
✔✔Taking measures to reduce adverse impacts on the environment is known as -
✔✔mitigation
Minimization is a comprehensive program to minimize or eliminate wastes. Mitigation is
the measures taken to reduce adverse impacts on the environment. Microbial growth is
the amplification or multiplication of micro-organisms. A mobile incinerator system is the
hazardous waste incinerator that can be transported from one site to another.
✔✔After a mortgage foreclosure sale in Georgia, how long does the defaulted borrower
have to redeem the property? - ✔✔There is no redemption period in Georgia after the
foreclosure sale
In Georgia, the period for redeeming a property in default, called equity of redemption,
does not extend beyond the foreclosure sale, which, if allowed, is called statutory equity
of redemption.
✔✔Bob and Janice want to obtain a loan to buy a new home. Their combined monthly
income is $7,500. What amount of monthly payment can they qualify for if the lender
uses 28/36 ratios and they have no other debt? - ✔✔$2100
QUESTIONS WITH ANSWERS RATED A+
✔✔The agreement of sale should provide that if the property is damaged or destroyed
by fire before the deal is consummated, the loss will fall upon the - ✔✔the seller
The "risk of loss" is transferred to the buyer upon the signing of the sales contract.
Thus, the sales contract should include a clause that would keep the risk of loss on the
seller and require the seller to maintain insurance. If this clause were not inserted in the
sales contract, then the buyer would be responsible for any damage to the property and
still have to buy the property, regardless of condition.
✔✔A lead-based paint disclosure form is required for all residential dwellings built
before January 1, 1978. When applicable, who must sign the form? - ✔✔buyer, seller,
and both agents
All parties must sign the disclosure form. Both agents are equally liable for compliance.
✔✔A legal property description in Georgia that identifies boundaries and is commonly
used to survey property is known as: - ✔✔System of metes and bounds
The principal method of delineating property boundaries for surveys and creating a legal
description for property in Georgia is called the metes and bounds system. The short
form, also known as lot, block system, is the other acceptable legal description for
property in Georgia.
✔✔What is an involuntary specific lien? - ✔✔mechanic's lien
The IRS lien is a general involuntary lien against all items owned by an individual
(including, but not limited to, real estate). The mechanic's lien is an involuntary specific
lien against property worked on by a contractor. The mortgage is a voluntary specific
lien given freely by the landowner to the buyer. The easement is not a lien, although it is
an encumbrance on the property.
✔✔Which statement is TRUE? - ✔✔You receive stock in a cooperative and a deed in a
condominium
Condominium owners receive a deed and cooperative owners buy stock and receive a
proprietary lease.
✔✔What is the gross commission on a property that sold for $450,000 with a rate of
commission of 6%? - ✔✔$27,000
$450,000 x .06 = $27,000
,✔✔Which would be an example of voluntary alienation? - ✔✔sale
Eminent domain is the government's right to take private property with just
compensation and is an involuntary transfer of title. Escheat is when one dies without a
will and without heirs, so title involuntarily transfers to the state. Adverse possession is
acquiring someone else's title through open notorious, exclusive, and continuous use of
the property (also involuntary). The sale of property is usually a voluntary event.
✔✔At a listing appointment, Patty promises the sellers they will get four open houses a
month. The seller signs the agreement. In the first month of marketing, Patty's husband
becomes ill and Patty cancels the open house. The seller got only two open houses that
month. Which best describes the situation? - ✔✔Patty is breaching her broker's duty of
accountability
Agents are accountable to the client for their actions. If the seller was promised four
open houses a month, that is what the seller should get.
✔✔Regarding the handling of earnest money in a Georgia real estate contract, which of
the following is true? - ✔✔The amount of earnest money and who will hold these funds
is determined by contract agreement
Items other than legal tender (money) may suffice as earnest money as long as the item
is identified and assigned a monetary value in writing. Earnest money may be held by
whomever is contractually agreed upon, including either the listing broker or the selling
broker. If earnest money is deposited in an interest-bearing trust account, then all
parties to the contract must agree in writing as to who receives the interest earned.
✔✔What purpose does the Superfund serve? - ✔✔It allows the EPA to clean up
abandoned waste sites and requires the responsible party to cover the costs of doing so
The Clean Water Act deals with water quality. The Clean Air Act prevents air pollution.
The Lead-Based Paint Hazard Reduction Act prevents lead poisoning. The Superfund
allows the EPA to clean up such sites and compels responsible parties to perform clean
ups or reimburse the government for EPA clean ups.
✔✔A broker has a policy that agents will not be dual agents in in-company transactions
or when the agents sell their own listings. Which would a potential buyer be to the listing
agent if the buyer wants to buy the agent's listing? - ✔✔customer
A dual agent is a broker or salesperson who represents both buyer and seller. A client is
a party represented by a broker. An agent is someone a client hires to represent them
like a broker. The customer is the party in the transaction that is not represented.
,✔✔Seller and buyer entered into an instrument of conveyance in which the buyer
immediately received legal title. Which instrument would have been used by the
parties? - ✔✔deed
An offer cannot become a contract until the offer is accepted. An option may never be
exercised. A land contract only conveys equitable title. A deed is the instrument that
conveys legal title.
✔✔An attorney refers a friend looking to purchase a home to a broker. Subsequently,
the broker contacts the attorney's friend and assists in finding a property for the friend to
buy. At what point might the broker be allowed to compensate the attorney for the
referral? - ✔✔At no time
License law in Georgia allows a broker to pay a referral fee ONLY to another real estate
broker.
✔✔A real estate listing is an agreement between - ✔✔seller and broker
The listing agreement is an agreement between broker and seller; the broker is entitled
to a commission when a ready, willing, and able buyer makes an offer acceptable to the
seller.
✔✔Executor Fred calls Agent Tom to list a vacant tract of land, instructing him to list the
land for $700,000. Several weeks later, Agent Tom becomes aware of a developer who
would pay as much as $1,000,000 for the property. Tom thereupon submits a full-price
offer to the owner and purchases the property. Tom then resells the property to the
developer and pockets a $300,000 profit. Which statement is TRUE? - ✔✔Tom violated
the law by not providing notice of information that would affect Fred
Tom had a duty to inform Fred of the true value of the property. This would be known as
self-dealing.
✔✔Point of beginning refers to - ✔✔the first corner of the parcel to be surveyed.
The point of beginning is where a metes and bound description starts and ends.
✔✔An individual has operated a service station in Georgia for years, in an area recently
rezoned for residential use. After the gas station was virtually demolished by a severe
storm, what would be true? - ✔✔The owner could only rebuild the gas station if the
location was spot zoned for commercial use or if the owner was granted a variance
Under these circumstances, the owner had been operating the service station under
non-conforming use; when the property was destroyed, it would have to be rebuilt to
comply with current zoning laws, unless the location was spot zoned for commercial or
, the owner was granted a variance from the zoning board. The owner would not be
entitled to compensation for the loss of the business.
✔✔Who is NOT an agent or subagent? - ✔✔a non-licensed personal assistant of an
agent
A broker, property manager, and salesperson would either be considered an agent, or
subagent. An unlicensed assistant can only do administrative tasks for the agent.
✔✔With the intention of offering a homebuyer some assurances about the physical
condition of the property under contract, the customary residential sales agreement
form in Georgia makes the buyer's contract commitment contingent on a(n): -
✔✔Inspection by a qualified home inspector
Although many contingencies may be a part of any real estate sales contract, the
standard Georgia real estate contract includes a home inspection contingency that
specifically affords the buyer some degree of confidence regarding the structural
condition of the property.
✔✔A section of a township contains - ✔✔640 Acres
An acre contains 43,560 square feet, which is equal to 160 square rods. A mile contains
5,280 feet, which is equal to 1,760 yards, or 320 rods. Each township contains 36
sections. Each section is one square mile, or 640 acres.
✔✔Taking measures to reduce adverse impacts on the environment is known as -
✔✔mitigation
Minimization is a comprehensive program to minimize or eliminate wastes. Mitigation is
the measures taken to reduce adverse impacts on the environment. Microbial growth is
the amplification or multiplication of micro-organisms. A mobile incinerator system is the
hazardous waste incinerator that can be transported from one site to another.
✔✔After a mortgage foreclosure sale in Georgia, how long does the defaulted borrower
have to redeem the property? - ✔✔There is no redemption period in Georgia after the
foreclosure sale
In Georgia, the period for redeeming a property in default, called equity of redemption,
does not extend beyond the foreclosure sale, which, if allowed, is called statutory equity
of redemption.
✔✔Bob and Janice want to obtain a loan to buy a new home. Their combined monthly
income is $7,500. What amount of monthly payment can they qualify for if the lender
uses 28/36 ratios and they have no other debt? - ✔✔$2100
