COLIBRI REAL ESTATE EXAM
QUESTIONS AND ANSWERS 2026
VERIFIED.
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? -
ANS No
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. - ANS False
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? - ANS $3,000
A real estate licensee is more likely to be an employee of his broker. - ANS False
If a broker supervises the real estate activities of an associated licensee, that licensee CANNOT
be considered an independent contractor. - ANS False
A real estate licensee who is an independent contractor is paid based on successful real estate
transactions, not on hours worked. - ANS True
@COPYRIGHT ALL RIGHTS RESERVED PAGE 1 OF 78
,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. -
ANS Broker
A business that serves as an intermediary between buyers and sellers and/or lessees and lessors
of real estate. - ANS Brokerage
Insurance that protects real estate licensees from liability due to mistakes or negligence. It does
not cover claims related to fraud or discrimination. - ANS Errors and Omissions Insurance
(E&O)
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. -
ANS Independent Contractor
A person licensed under state law to practice real estate. - ANS Licensee
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. - ANS REALTOR®
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. -
ANS Salesperson
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. - ANS Statutory Nonemployee
In which field do the majority of new licensees begin their work? - ANS Residential Sales
@COPYRIGHT ALL RIGHTS RESERVED PAGE 2 OF 78
,Which is NOT an advantage to a career in real estate sales? - ANS the option to double
commission percentages during slow months
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? -
ANS Rick can be held liable for Louie's misconduct.
At the end of the year, what tax form will an independent contractor receive to document their
income? - ANS 1099-MISC
Who could a real estate licensee represent in a real estate transaction? Select all correct
responses. - ANS Buyers
Landlords
Sellers
Tenants
All are correct
Steven just successfully finished his required real estate prelicensing course. Which statement is
TRUE? - ANS Once he joins the NAR, he can call himself a REALTOR®.
In order to be considered an independent contractor, a licensee's compensation must be -
ANS based on sales produced, not hours worked.
For a real estate licensee, which is NOT a characteristic that indicates they are an independent
contractor? - ANS The licensee must be paid for hours spent in the brokerage office.
What are the tasks for which a property manager is typically responsible? Select all correct
responses. - ANS Collecting Rents
Leasing Units
Maintaining Tenant Relationships
@COPYRIGHT ALL RIGHTS RESERVED PAGE 3 OF 78
, Managing the Maintenance and Repair of the Building
All are correct
The theory of supply and demand states that when supply exceeds demand, prices will fall. -
ANS True
Real estate cycles tend to lag somewhat behind general business cycles in response to supply
and demand. - ANS True
As the supply of homes in the area rises, what would you expect to happen to home prices in
the short term? - ANS Home prices will fall slightly from their high points.
When Widget moves out, what type of market is Big City likely to experience? - ANS Buyer's
Market
Cost inflation can affect new home prices as builders pass along their higher costs for labor and
materials. - ANS True
Higher taxes tend to encourage spending and investing. - ANS False
P-E-G-S - ANS Physical
Economic
Government
Social
A situation in the housing market when there are many homes available for sale, but few
buyers. - ANS Buyer's Market
@COPYRIGHT ALL RIGHTS RESERVED PAGE 4 OF 78
QUESTIONS AND ANSWERS 2026
VERIFIED.
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? -
ANS No
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. - ANS False
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? - ANS $3,000
A real estate licensee is more likely to be an employee of his broker. - ANS False
If a broker supervises the real estate activities of an associated licensee, that licensee CANNOT
be considered an independent contractor. - ANS False
A real estate licensee who is an independent contractor is paid based on successful real estate
transactions, not on hours worked. - ANS True
@COPYRIGHT ALL RIGHTS RESERVED PAGE 1 OF 78
,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. -
ANS Broker
A business that serves as an intermediary between buyers and sellers and/or lessees and lessors
of real estate. - ANS Brokerage
Insurance that protects real estate licensees from liability due to mistakes or negligence. It does
not cover claims related to fraud or discrimination. - ANS Errors and Omissions Insurance
(E&O)
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. -
ANS Independent Contractor
A person licensed under state law to practice real estate. - ANS Licensee
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. - ANS REALTOR®
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. -
ANS Salesperson
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. - ANS Statutory Nonemployee
In which field do the majority of new licensees begin their work? - ANS Residential Sales
@COPYRIGHT ALL RIGHTS RESERVED PAGE 2 OF 78
,Which is NOT an advantage to a career in real estate sales? - ANS the option to double
commission percentages during slow months
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? -
ANS Rick can be held liable for Louie's misconduct.
At the end of the year, what tax form will an independent contractor receive to document their
income? - ANS 1099-MISC
Who could a real estate licensee represent in a real estate transaction? Select all correct
responses. - ANS Buyers
Landlords
Sellers
Tenants
All are correct
Steven just successfully finished his required real estate prelicensing course. Which statement is
TRUE? - ANS Once he joins the NAR, he can call himself a REALTOR®.
In order to be considered an independent contractor, a licensee's compensation must be -
ANS based on sales produced, not hours worked.
For a real estate licensee, which is NOT a characteristic that indicates they are an independent
contractor? - ANS The licensee must be paid for hours spent in the brokerage office.
What are the tasks for which a property manager is typically responsible? Select all correct
responses. - ANS Collecting Rents
Leasing Units
Maintaining Tenant Relationships
@COPYRIGHT ALL RIGHTS RESERVED PAGE 3 OF 78
, Managing the Maintenance and Repair of the Building
All are correct
The theory of supply and demand states that when supply exceeds demand, prices will fall. -
ANS True
Real estate cycles tend to lag somewhat behind general business cycles in response to supply
and demand. - ANS True
As the supply of homes in the area rises, what would you expect to happen to home prices in
the short term? - ANS Home prices will fall slightly from their high points.
When Widget moves out, what type of market is Big City likely to experience? - ANS Buyer's
Market
Cost inflation can affect new home prices as builders pass along their higher costs for labor and
materials. - ANS True
Higher taxes tend to encourage spending and investing. - ANS False
P-E-G-S - ANS Physical
Economic
Government
Social
A situation in the housing market when there are many homes available for sale, but few
buyers. - ANS Buyer's Market
@COPYRIGHT ALL RIGHTS RESERVED PAGE 4 OF 78
