Colibri Real Estate Exam With
Complete Questions And Well Verified
Answers Latest Update
1. Joe Alpha of ABC Real Estate Corp. has been very successful in buying
houses, fixing them up, and reselling them. He put an advertisement in
the local newspaper seeking investors to help him purchase property and
pay for renovations, promising an excellent return on investment when
the properties sold. Do you think that Joe needs a securities broker-dealer
license? - CORRECT ANSWER-No
2. Ellie is very regimented. She likes to be in the office by 8 a.m. and be
home by 5:30 p.m. She likes that same precision in her monthly budget—
she wants to know what's coming in and how much she can expect to put
into her IRA. She is a good candidate for a career in real estate sales. -
CORRECT ANSWER-False
3. Phil, a real estate licensee, considers going to work for JJ Realty. Broker
Jana James offers him a 60%-40% split on commission. If JJ Realty takes in
$5,000 total commission on Phil's first sale, what is Phil's split? - CORRECT
ANSWER-$3,000
4. A real estate licensee is more likely to be an employee of his broker. -
CORRECT ANSWER-False
5. If a broker supervises the real estate activities of an associated licensee,
that licensee CANNOT be considered an independent contractor. -
CORRECT ANSWER-False
,6. A real estate licensee who is an independent contractor is paid based on
successful real estate transactions, not on hours worked. - CORRECT
ANSWER-True
7. Generically speaking, a person who, for a fee, sells, lists, leases,
exchanges, negotiates, or otherwise deals in the real estate of others or
represents publicly that they do so. - CORRECT ANSWER-Broker
8. A business that serves as an intermediary between buyers and sellers
and/or lessees and lessors of real estate. - CORRECT ANSWER-Brokerage
9. Insurance that protects real estate licensees from liability due to mistakes
or negligence. It does not cover claims related to fraud or discrimination. -
CORRECT ANSWER-Errors and Omissions Insurance (E&O)
10.Under common law, a person who contracts to do a job for another but
maintains control over how the task will be carried out, rather than
following detailed instructions. - CORRECT ANSWER-Independent
Contractor
11.A person licensed under state law to practice real estate. - CORRECT
ANSWER-Licensee
12.Any real estate licensee who is a member of the National Association of
REALTORS® (NAR) and his or her affiliated state/local boards. Only
, members may use the term REALTOR® as it's a registered trademark of
NAR. - CORRECT ANSWER-REALTOR®
13.Generically speaking, a real estate licensee agent who is associated with a
broker and as such may perform most of the acts a broker can on behalf of
the broker. Also called Sales Associate. - CORRECT ANSWER-Salesperson
14.A real estate licensee who is treated as an independent contractor for tax
purposes when specified conditions are met: proper licensing;
compensation based on sales; and services performed under a written
contract. - CORRECT ANSWER-Statutory Nonemployee
15.In which field do the majority of new licensees begin their work? -
CORRECT ANSWER-Residential Sales
16.Which is NOT an advantage to a career in real estate sales? - CORRECT
ANSWER-the option to double commission percentages during slow
months
17.Licensee Louie has worked for Rick, the broker at ABC Realty, for 20 years.
Louie has been accused of negligence for not disclosing a material fact to a
buyer. Which statement is TRUE? - CORRECT ANSWER-Rick can be held
liable for Louie's misconduct.
18.At the end of the year, what tax form will an independent contractor
receive to document their income? - CORRECT ANSWER-1099-MISC
, 19.Who could a real estate licensee represent in a real estate transaction?
Select all correct responses. - CORRECT ANSWER-Buyers
20.Landlords
21.Sellers
22.Tenants
23.All are correct
24.Steven just successfully finished his required real estate prelicensing
course. Which statement is TRUE? - CORRECT ANSWER-Once he joins the
NAR, he can call himself a REALTOR®.
25.In order to be considered an independent contractor, a licensee's
compensation must be - CORRECT ANSWER-based on sales produced, not
hours worked.
26.For a real estate licensee, which is NOT a characteristic that indicates they
are an independent contractor? - CORRECT ANSWER-The licensee must be
paid for hours spent in the brokerage office.
27.What are the tasks for which a property manager is typically responsible?
Select all correct responses. - CORRECT ANSWER-Collecting Rents
28.Leasing Units
29.Maintaining Tenant Relationships
30.Managing the Maintenance and Repair of the Building
31.All are correct
Complete Questions And Well Verified
Answers Latest Update
1. Joe Alpha of ABC Real Estate Corp. has been very successful in buying
houses, fixing them up, and reselling them. He put an advertisement in
the local newspaper seeking investors to help him purchase property and
pay for renovations, promising an excellent return on investment when
the properties sold. Do you think that Joe needs a securities broker-dealer
license? - CORRECT ANSWER-No
2. Ellie is very regimented. She likes to be in the office by 8 a.m. and be
home by 5:30 p.m. She likes that same precision in her monthly budget—
she wants to know what's coming in and how much she can expect to put
into her IRA. She is a good candidate for a career in real estate sales. -
CORRECT ANSWER-False
3. Phil, a real estate licensee, considers going to work for JJ Realty. Broker
Jana James offers him a 60%-40% split on commission. If JJ Realty takes in
$5,000 total commission on Phil's first sale, what is Phil's split? - CORRECT
ANSWER-$3,000
4. A real estate licensee is more likely to be an employee of his broker. -
CORRECT ANSWER-False
5. If a broker supervises the real estate activities of an associated licensee,
that licensee CANNOT be considered an independent contractor. -
CORRECT ANSWER-False
,6. A real estate licensee who is an independent contractor is paid based on
successful real estate transactions, not on hours worked. - CORRECT
ANSWER-True
7. Generically speaking, a person who, for a fee, sells, lists, leases,
exchanges, negotiates, or otherwise deals in the real estate of others or
represents publicly that they do so. - CORRECT ANSWER-Broker
8. A business that serves as an intermediary between buyers and sellers
and/or lessees and lessors of real estate. - CORRECT ANSWER-Brokerage
9. Insurance that protects real estate licensees from liability due to mistakes
or negligence. It does not cover claims related to fraud or discrimination. -
CORRECT ANSWER-Errors and Omissions Insurance (E&O)
10.Under common law, a person who contracts to do a job for another but
maintains control over how the task will be carried out, rather than
following detailed instructions. - CORRECT ANSWER-Independent
Contractor
11.A person licensed under state law to practice real estate. - CORRECT
ANSWER-Licensee
12.Any real estate licensee who is a member of the National Association of
REALTORS® (NAR) and his or her affiliated state/local boards. Only
, members may use the term REALTOR® as it's a registered trademark of
NAR. - CORRECT ANSWER-REALTOR®
13.Generically speaking, a real estate licensee agent who is associated with a
broker and as such may perform most of the acts a broker can on behalf of
the broker. Also called Sales Associate. - CORRECT ANSWER-Salesperson
14.A real estate licensee who is treated as an independent contractor for tax
purposes when specified conditions are met: proper licensing;
compensation based on sales; and services performed under a written
contract. - CORRECT ANSWER-Statutory Nonemployee
15.In which field do the majority of new licensees begin their work? -
CORRECT ANSWER-Residential Sales
16.Which is NOT an advantage to a career in real estate sales? - CORRECT
ANSWER-the option to double commission percentages during slow
months
17.Licensee Louie has worked for Rick, the broker at ABC Realty, for 20 years.
Louie has been accused of negligence for not disclosing a material fact to a
buyer. Which statement is TRUE? - CORRECT ANSWER-Rick can be held
liable for Louie's misconduct.
18.At the end of the year, what tax form will an independent contractor
receive to document their income? - CORRECT ANSWER-1099-MISC
, 19.Who could a real estate licensee represent in a real estate transaction?
Select all correct responses. - CORRECT ANSWER-Buyers
20.Landlords
21.Sellers
22.Tenants
23.All are correct
24.Steven just successfully finished his required real estate prelicensing
course. Which statement is TRUE? - CORRECT ANSWER-Once he joins the
NAR, he can call himself a REALTOR®.
25.In order to be considered an independent contractor, a licensee's
compensation must be - CORRECT ANSWER-based on sales produced, not
hours worked.
26.For a real estate licensee, which is NOT a characteristic that indicates they
are an independent contractor? - CORRECT ANSWER-The licensee must be
paid for hours spent in the brokerage office.
27.What are the tasks for which a property manager is typically responsible?
Select all correct responses. - CORRECT ANSWER-Collecting Rents
28.Leasing Units
29.Maintaining Tenant Relationships
30.Managing the Maintenance and Repair of the Building
31.All are correct
