Colibri Real Estate (Real Estate Express) Final
Exam ACTUAL TEST BANK 100+ Questions and
Correct Detailed Answers | Rated A+ Grade |
Guaranteed Pass 100%
Question 1:
Licensee Patti is having lunch with an old school friend, Janet. Janet mentions, "I sure wish
I could sell my house." Patti responds, "I'm just the person for you. Make sure you're home
at 7:00 this evening." Which statement best describes the situation?
A) Janet cannot assume any relationship
B) Janet could be Patti's client through express agency
C) Janet could be Patti's client through implied agency
D) Janet has just made Patti her universal agent
Answer: C) Janet could be Patti's client through implied agency
Rationale: Patti's words and actions suggest she is offering to act as Janet's agent. An
implied agency is created through the conduct of the parties, even without a written
agreement.
Question 2:
Which is NOT a necessary element for a valid and enforceable purchase agreement?
A) Consideration
B) Contractual capacity
C) Earnest money deposit
D) Mutual agreement
Answer: C) Earnest money deposit
,Rationale: While earnest money is customary in real estate transactions, it is not a legal
requirement for a valid contract. The essential elements of a contract are offer, acceptance,
consideration, mutual agreement, and capacity.
Question 3:
Which statement about a comparative market analysis (CMA) is FALSE?
A) A CMA analyzes comparable properties
B) A CMA is an estimate of market value
C) A CMA may be used to determine property value for a federally regulated loan
D) A CMA should evaluate properties currently listed and recently sold listings
Answer: C) A CMA may be used to determine property value for a federally regulated
loan
Rationale: A CMA is an estimate of market value for listing purposes. For federally regulated
loans, an appraisal is required, not a CMA.
Question 4:
When Dave and Lucy get married, they decide to sell each of their homes and buy a house
together. Lucy's house sells for $700,000; Dave's house sells for $300,000, and they buy a
$1 million house. If Lucy wants to protect her investment in the new house, what form of
ownership must they take?
A) Joint tenancy
B) Tenancy in common
C) Tenancy by the entirety
D) Tenancy in severalty
Answer: B) Tenancy in common
Rationale: Tenancy in common allows unequal ownership interests (Lucy 70%, Dave 30%)
and protects each party's separate investment. Joint tenancy requires equal shares.
Question 5:
,A property is listed for $200,000. The broker gets an offer from Girish (cash, closing in 90
days), one from Tim at $155,000 (subject to obtaining a mortgage), and an offer from Shari
at $190,000 (with seller financing). Which offer(s) must the broker disclose to the seller?
A) All of the offers
B) None of the offers, as they are all below the asking price
C) Only the first offer until the seller makes a decision
D) Only the highest offer
Answer: A) All of the offers
Rationale: The broker has a fiduciary duty to present all offers to the seller, regardless of
price or terms. The seller has the right to consider and accept, reject, or counter any offer.
Question 6:
An acceleration clause in a mortgage allows the lender to:
A) Charge a penalty if the borrower misses a payment
B) Charge a penalty if the borrower pays off the loan early
C) Declare the loan due if the borrower defaults
D) Declare the loan due if the borrower sells the property
Answer: C) Declare the loan due if the borrower defaults
Rationale: An acceleration clause allows the lender to demand full repayment of the loan
balance if the borrower defaults on any terms of the mortgage.
Question 7:
Ad valorem taxes are assessed:
A) Based on a person's income
B) Based on the property's value
C) On a decedent's estate
D) To cover costs of specific improvements to a neighborhood
Answer: B) Based on the property's value
, Rationale: "Ad valorem" means "according to value." These taxes are assessed based on
the assessed value of the property and are used for general government purposes.
Question 8:
The lead paint disclosure deals with homes built prior to:
A) 1978
B) 1982
C) 1992
D) 2001
Answer: A) 1978
Rationale: Federal law requires lead paint disclosure for homes built before 1978, when
lead-based paint was banned for residential use.
Question 9:
A(n) _____ is used to transfer personal property in a real estate transaction.
A) Bill of sale
B) Deed
C) Purchase agreement
D) Sales contract
Answer: A) Bill of sale
Rationale: A bill of sale transfers title to personal property (such as appliances or furniture).
A deed transfers title to real property.
Question 10:
F signs an exclusive right-to-sell listing agreement with broker R. Before the agreement
expires, F terminates the agreement for no reason and later sells the property to a co-
worker. Which statement is TRUE?
Exam ACTUAL TEST BANK 100+ Questions and
Correct Detailed Answers | Rated A+ Grade |
Guaranteed Pass 100%
Question 1:
Licensee Patti is having lunch with an old school friend, Janet. Janet mentions, "I sure wish
I could sell my house." Patti responds, "I'm just the person for you. Make sure you're home
at 7:00 this evening." Which statement best describes the situation?
A) Janet cannot assume any relationship
B) Janet could be Patti's client through express agency
C) Janet could be Patti's client through implied agency
D) Janet has just made Patti her universal agent
Answer: C) Janet could be Patti's client through implied agency
Rationale: Patti's words and actions suggest she is offering to act as Janet's agent. An
implied agency is created through the conduct of the parties, even without a written
agreement.
Question 2:
Which is NOT a necessary element for a valid and enforceable purchase agreement?
A) Consideration
B) Contractual capacity
C) Earnest money deposit
D) Mutual agreement
Answer: C) Earnest money deposit
,Rationale: While earnest money is customary in real estate transactions, it is not a legal
requirement for a valid contract. The essential elements of a contract are offer, acceptance,
consideration, mutual agreement, and capacity.
Question 3:
Which statement about a comparative market analysis (CMA) is FALSE?
A) A CMA analyzes comparable properties
B) A CMA is an estimate of market value
C) A CMA may be used to determine property value for a federally regulated loan
D) A CMA should evaluate properties currently listed and recently sold listings
Answer: C) A CMA may be used to determine property value for a federally regulated
loan
Rationale: A CMA is an estimate of market value for listing purposes. For federally regulated
loans, an appraisal is required, not a CMA.
Question 4:
When Dave and Lucy get married, they decide to sell each of their homes and buy a house
together. Lucy's house sells for $700,000; Dave's house sells for $300,000, and they buy a
$1 million house. If Lucy wants to protect her investment in the new house, what form of
ownership must they take?
A) Joint tenancy
B) Tenancy in common
C) Tenancy by the entirety
D) Tenancy in severalty
Answer: B) Tenancy in common
Rationale: Tenancy in common allows unequal ownership interests (Lucy 70%, Dave 30%)
and protects each party's separate investment. Joint tenancy requires equal shares.
Question 5:
,A property is listed for $200,000. The broker gets an offer from Girish (cash, closing in 90
days), one from Tim at $155,000 (subject to obtaining a mortgage), and an offer from Shari
at $190,000 (with seller financing). Which offer(s) must the broker disclose to the seller?
A) All of the offers
B) None of the offers, as they are all below the asking price
C) Only the first offer until the seller makes a decision
D) Only the highest offer
Answer: A) All of the offers
Rationale: The broker has a fiduciary duty to present all offers to the seller, regardless of
price or terms. The seller has the right to consider and accept, reject, or counter any offer.
Question 6:
An acceleration clause in a mortgage allows the lender to:
A) Charge a penalty if the borrower misses a payment
B) Charge a penalty if the borrower pays off the loan early
C) Declare the loan due if the borrower defaults
D) Declare the loan due if the borrower sells the property
Answer: C) Declare the loan due if the borrower defaults
Rationale: An acceleration clause allows the lender to demand full repayment of the loan
balance if the borrower defaults on any terms of the mortgage.
Question 7:
Ad valorem taxes are assessed:
A) Based on a person's income
B) Based on the property's value
C) On a decedent's estate
D) To cover costs of specific improvements to a neighborhood
Answer: B) Based on the property's value
, Rationale: "Ad valorem" means "according to value." These taxes are assessed based on
the assessed value of the property and are used for general government purposes.
Question 8:
The lead paint disclosure deals with homes built prior to:
A) 1978
B) 1982
C) 1992
D) 2001
Answer: A) 1978
Rationale: Federal law requires lead paint disclosure for homes built before 1978, when
lead-based paint was banned for residential use.
Question 9:
A(n) _____ is used to transfer personal property in a real estate transaction.
A) Bill of sale
B) Deed
C) Purchase agreement
D) Sales contract
Answer: A) Bill of sale
Rationale: A bill of sale transfers title to personal property (such as appliances or furniture).
A deed transfers title to real property.
Question 10:
F signs an exclusive right-to-sell listing agreement with broker R. Before the agreement
expires, F terminates the agreement for no reason and later sells the property to a co-
worker. Which statement is TRUE?
