COLIBRI REAL ESTATE END OF COURSE EXAM ACTUAL TEST PAPER QUESTIONS
CORRECT ANSWERS GRADED A PLUS
Colibri REAL Estate END OF Course EXAM
2026/2027 Questions and Answers Verified Solutions
Latest Update
Question:
Answer:
Economic Base ✔✔An increase in the cost of goods or services or too many people wanting too few
goods. - ✔✔Inflation ✔✔A characteristic of real property; each piece of land, each building, and
each house is a unique piece of real estate. Also called Uniqueness or Heterogeneity. - ✔✔Non-
Homogeneity ✔✔General swings in real estate activity, resulting in increasing or decreasing
activity and property values, during different phases of the cycle. - ✔✔Real Estate Cycles ✔✔A
physical characteristic of real property that says there is a limited supply of real estate; the perceived
supply of a good or service relative to the demand for the item. - ✔✔Scarcity ✔✔A situation in the
housing market when a large number of buyers are looking for houses in an area of limited
availability. - ✔✔Seller's Market ✔✔An economic principle that says that for all products, goods,
and services when supply exceeds demand, prices will fall and when demand exceeds supply, prices
will rise. - ✔✔Supply and Demand ✔✔These associates take and approve loan applications,
appraise properties, assess risk. They can find jobs with savings and loan associations, mutual
savings banks, commercial banks, mortgage companies, endowments, and government agencies. -
✔✔Real Estate Finance ✔✔People in this field use rigorous appraisal methods to evaluate property
for financial institutions, developers, property managers, or government agencies. - ✔✔Real Estate
Appraisal ✔✔These professionals purchase large tracts of land at a low cost per acre, then
subdivide and improve it with streets, sewers, and utilities so it can be resold at a higher cost per
front foot (for lots) or per square foot (for buildings). - ✔✔Real Estate Development ✔✔People in
this area of real estate build homes on contract or speculation. They might choose to sell, appraise,
manage, or help buyers finance the property. - ✔✔Real Estate Property Construction ✔✔This is a
growing field. More and more brokers, banks, and lawyers are getting into this service area as profit
margins are shrinking elsewhere. Jobs can include title researcher, escrow agent, and title insurance
overseer. - ✔✔Real Estate Title Work ✔✔There are numerous national, state, and local trade
associations that work to educate, lobby, support members, and manage public relations. - ✔✔Real
Estate Trade Association Work ✔✔Continuing education is part of maintaining a real estate license.
Educators have ample opportunities to teach these courses. - ✔✔Real Estate Education. ✔✔This
work can be for the FHA, VA, Fannie Mae, Ginnie Mae, Freddie Mac, and HUD and for state and
county work, such as urban planning. - ✔✔Real Estate Government Work ✔✔include single-family
residential properties, multi-family properties (from a double to a large apartment building),
condominiums, or cooperatives. Specialized residential properties can include converted-use
,property, manufactured housing, and timeshares.
Question:
Answer:
Residential properties ✔✔include offices, stores, hotels, and other buildings. Those dealing in
commercial properties are usually involved not only in sales and other aspects of brokerage, but also
in leasing and leasebacks, property management, and even construction or financing. -
✔✔Commercial properties ✔✔include land and structures involved in the production, distribution,
and storage of tangible economic goods. - ✔✔Industrial properties ✔✔include selling farms or
selling large areas to subdivide and develop. - ✔✔Farm and vacant land ✔✔This varies by agency
and can include filling out forms and contracts, closing a sale, selling your services, and attracting
new listings. - ✔✔Training ✔✔These are the tools (websites, email, online forms), advertising, and
staff support that help you do your job. Many brokerages supply these things as part of your
agreement with them; some charge a nominal fee; others require you to provide them yourself. -
✔✔Brokerage Services ✔✔Payment comes from the broker, not from the buyer or seller. You may
split the compensation (50%-50% or some other percentage) or get 100%. The amount you pay for
brokerage services is often impacted by how much commission you receive. (More commission, the
more you will have to pay for services.) - ✔✔Compensation ✔✔You can be an independent
contractor (which the IRS calls a statutory nonemployee) or an employee. Independent contractors
have to do more administrative tasks, such as pay quarterly taxes. - ✔✔Relationship ✔✔For
contractors, the specifics of the broker-agent relationship should be spelled out in an
_____________ that is signed by both parties. - ✔✔Independent Contractor Agreement (ICA)
✔✔Most ICAs will address - ✔✔expenses, commission, and brokerage representation. ✔✔Factors
that affect the real estate market - ✔✔PEGS Physical Economic Governmental Social ✔✔influence
real estate markets include location, immobility (land cannot be moved), uniqueness (land cannot be
duplicated, and no two parcels are the same) and scarcity (land cannot be created). - ✔✔Physical
Factors ✔✔influence real estate markets include business cycles, housing cycles, supply and
demand, inflation, cost of money (interest rates), and the economic base of an area - ✔✔Economic
Factors ✔✔general swings of increasing or decreasing activity and property values; they depend on
business cycles. - ✔✔Housing Cycles ✔✔impacts buyer's markets and seller's markets. -
✔✔Supply and Demand ✔✔Supply and demand impacts - ✔✔Buyer's markets and seller's markets
✔✔increase in cost of goods or services. - ✔✔Inflation ✔✔the interest rate one must pay to use
another's money - ✔✔Cost of money ✔✔the main business or industry by which a community
supports and is critical to maintaining home values and is a primary factor in determining the supply
of real estate.
,Question:
Answer:
Economic Base ✔✔influence real estate markets on state and local levels include revenue
generating laws (taxation and specific tax policies) - ✔✔Governmental Factors ✔✔influence real
estate include demographics, population growth, population age, the family size, and population
migration. - ✔✔Social Factors ✔✔What can be considered is the most important factor in
determining supply in the real estate market? - ✔✔Economic Base of an Area ✔✔What would
more MOST LIKELY to contribute to a seller's market? - ✔✔High Construction Costs
✔✔BigTime Manufacturers are getting ready to build a new factory in Smithton that should attract
hundreds of new workers to the small town. What would you expect the immediate effect on home
prices in the area to be? - ✔✔Home prices should rise initially. ✔✔What acronym can you use to
remember the broad forces that can impact the real estate market? - ✔✔PEGS ✔✔Which situation
would NOT likely result in a seller's market? - ✔✔migration out of an area ✔✔Who sets the
interest rates that banks charge for mortgages? - ✔✔individual banks and other lenders ✔✔Brian
attends his real estate company's party and, after having a few too many cocktails, drives home. He
is pulled over and arrested for driving under the influence. Two months later Brian is convicted and
serves a year of probation and pays a fine. Brian does not notify the regulatory agency of this
conviction. Which best describes this situation? - ✔✔Brian may be punished for not disclosing the
conviction Failing to notify a regulatory agency of the conviction is a violation. ✔✔A rental
property has a return rate of 8%. The monthly net rental is $600. What is the market value of the
property? - ✔✔$90,000 Rate of return is computed by dividing the annual net income by the rate of
return. In this case, multiply the monthly $600 income by 12 to get the annual income. The gross
annual income, $7,200, divided by 8%, is $90,000. ✔✔In most states, the listing broker has a
fiduciary duty to the - ✔✔client A broker has a fiduciary duty to the client, while the broker's
salespeople have a duty to the broker. ✔✔While determining the net operating income of an
investment property, an appraiser will not take into account - ✔✔interest expense Although tax
deductible, the amount of interest an owner pays is not used to calculate the net operating income.
Remember, anything related to debt service is an owner's expense. ✔✔After listing a property that
the agent believes is overpriced, the agent returns to the office and vents his frustration to a fellow
licensee at the brokerage. Which duty has the agent breached? - ✔✔loyalty If an agent decides to
take the listing at the price indicated by the seller, the agent must be loyal to the seller and not imply
that the list price is unreasonable. ✔✔The property sale will close on April 15, 2010. Taxes are
$4,300 per year and are paid through December 2009. Calculate the seller's share of taxes using a
calendar year (365 days). - ✔✔$1,236.98 There isn't really a formula for calculating prorations.
First, calculate a cost per day, then determine the number of days in which taxes haven't been paid,
and then multiply the number of days by the daily tax rate. Substitute numbers for the known factors
in the formula. Step 1: Determine the Daily Tax Rate: $4, = $11.7808; Step 2: Determine
the Number of Days: January 31 + February 28 + March 31 + April 15 = 105; Step 3: Determine
Amount Owed: 105 days x $11.7808 per day = $1,236.984. The seller owes $1,236.98 in taxes.
, ✔✔Which of the following statements is true regarding real estate trust accounts in Georgia? -
✔✔A broker may have multiple trust accounts as long as each is registered with the Real Estate
Commission Interest-bearing trust accounts are permitted as long as the contract states that the
designated trust money will be held in an interest-bearing account as well as to whom the interest
will be paid. Trust money must be held in a separate FDIC insured "trust account." A broker is not
limited to the number of trust accounts he or she may open as long as each account number and bank
account name is provided to the Commission. ✔✔The real estate closing date is May 25. The lender
uses a 360-day calendar for interest proration and payments are due on the 15th day of each month.
The loan balance is $84,000 with an interest rate of 8%. How much accrued interest will the seller
owe at closing? - ✔✔$186.67 The 360-day calendar assumes every month has 30 days. $84,000 x
8% = $6,720 for the total interest by year. $6,720 divided by 12 = $560 for the interest per month.
$560 divided by 30 days = 18.6666 for the interest per day. 10 x 18.6666 = 186.67 for the interest
for 10 days. ✔✔All of the following are true about a CAM license in Georgia EXCEPT: - ✔✔It
allows the licensee to manage residential and condominium communities as well as provide real
estate services to homebuyers and sellers The holder of a CAM license must satisfy license law
education and exam requirements. The license only permits the holder to engage in community
management activities. The license may be acquired without holding a salesperson's license but a
salesperson or broker might additionally acquire the CAM license. ✔✔Which of the following
property legal descriptions is NOT used in Georgia? - ✔✔Rectangular survey system The metes and
bounds system and lot, block system are the only two legal descriptions for property used in
Georgia. ✔✔The Real Estate Settlement Procedures Act (RESPA) is administered by the -
✔✔Department of Housing and Urban Development HUD administers RESPA rules and
compliance. The Division of Real Estate regulates real estate professionals. ALTA regulates title
companies. NAR promulgates a code of ethics. ✔✔Which of the following statements is true
concerning Georgia's Real Estate Commissioner? - ✔✔The Commissioner is hired by the Real
Estate Commission If the Commissioner or any of the Commissioner's staff holds a real estate
license, it must be placed on inactive status. The Commissioner is not a member of the Real Estate
Commission, but is hired by the Commission. ✔✔A property generated $135,000 income per year.
A vacancy and collection loss of 5% is normal for the area. The building expenses are $8500. What
was the gross income? - ✔✔$135,000 Gross income is the total amount a property generates in
income before expenses are removed. ✔✔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
CORRECT ANSWERS GRADED A PLUS
Colibri REAL Estate END OF Course EXAM
2026/2027 Questions and Answers Verified Solutions
Latest Update
Question:
Answer:
Economic Base ✔✔An increase in the cost of goods or services or too many people wanting too few
goods. - ✔✔Inflation ✔✔A characteristic of real property; each piece of land, each building, and
each house is a unique piece of real estate. Also called Uniqueness or Heterogeneity. - ✔✔Non-
Homogeneity ✔✔General swings in real estate activity, resulting in increasing or decreasing
activity and property values, during different phases of the cycle. - ✔✔Real Estate Cycles ✔✔A
physical characteristic of real property that says there is a limited supply of real estate; the perceived
supply of a good or service relative to the demand for the item. - ✔✔Scarcity ✔✔A situation in the
housing market when a large number of buyers are looking for houses in an area of limited
availability. - ✔✔Seller's Market ✔✔An economic principle that says that for all products, goods,
and services when supply exceeds demand, prices will fall and when demand exceeds supply, prices
will rise. - ✔✔Supply and Demand ✔✔These associates take and approve loan applications,
appraise properties, assess risk. They can find jobs with savings and loan associations, mutual
savings banks, commercial banks, mortgage companies, endowments, and government agencies. -
✔✔Real Estate Finance ✔✔People in this field use rigorous appraisal methods to evaluate property
for financial institutions, developers, property managers, or government agencies. - ✔✔Real Estate
Appraisal ✔✔These professionals purchase large tracts of land at a low cost per acre, then
subdivide and improve it with streets, sewers, and utilities so it can be resold at a higher cost per
front foot (for lots) or per square foot (for buildings). - ✔✔Real Estate Development ✔✔People in
this area of real estate build homes on contract or speculation. They might choose to sell, appraise,
manage, or help buyers finance the property. - ✔✔Real Estate Property Construction ✔✔This is a
growing field. More and more brokers, banks, and lawyers are getting into this service area as profit
margins are shrinking elsewhere. Jobs can include title researcher, escrow agent, and title insurance
overseer. - ✔✔Real Estate Title Work ✔✔There are numerous national, state, and local trade
associations that work to educate, lobby, support members, and manage public relations. - ✔✔Real
Estate Trade Association Work ✔✔Continuing education is part of maintaining a real estate license.
Educators have ample opportunities to teach these courses. - ✔✔Real Estate Education. ✔✔This
work can be for the FHA, VA, Fannie Mae, Ginnie Mae, Freddie Mac, and HUD and for state and
county work, such as urban planning. - ✔✔Real Estate Government Work ✔✔include single-family
residential properties, multi-family properties (from a double to a large apartment building),
condominiums, or cooperatives. Specialized residential properties can include converted-use
,property, manufactured housing, and timeshares.
Question:
Answer:
Residential properties ✔✔include offices, stores, hotels, and other buildings. Those dealing in
commercial properties are usually involved not only in sales and other aspects of brokerage, but also
in leasing and leasebacks, property management, and even construction or financing. -
✔✔Commercial properties ✔✔include land and structures involved in the production, distribution,
and storage of tangible economic goods. - ✔✔Industrial properties ✔✔include selling farms or
selling large areas to subdivide and develop. - ✔✔Farm and vacant land ✔✔This varies by agency
and can include filling out forms and contracts, closing a sale, selling your services, and attracting
new listings. - ✔✔Training ✔✔These are the tools (websites, email, online forms), advertising, and
staff support that help you do your job. Many brokerages supply these things as part of your
agreement with them; some charge a nominal fee; others require you to provide them yourself. -
✔✔Brokerage Services ✔✔Payment comes from the broker, not from the buyer or seller. You may
split the compensation (50%-50% or some other percentage) or get 100%. The amount you pay for
brokerage services is often impacted by how much commission you receive. (More commission, the
more you will have to pay for services.) - ✔✔Compensation ✔✔You can be an independent
contractor (which the IRS calls a statutory nonemployee) or an employee. Independent contractors
have to do more administrative tasks, such as pay quarterly taxes. - ✔✔Relationship ✔✔For
contractors, the specifics of the broker-agent relationship should be spelled out in an
_____________ that is signed by both parties. - ✔✔Independent Contractor Agreement (ICA)
✔✔Most ICAs will address - ✔✔expenses, commission, and brokerage representation. ✔✔Factors
that affect the real estate market - ✔✔PEGS Physical Economic Governmental Social ✔✔influence
real estate markets include location, immobility (land cannot be moved), uniqueness (land cannot be
duplicated, and no two parcels are the same) and scarcity (land cannot be created). - ✔✔Physical
Factors ✔✔influence real estate markets include business cycles, housing cycles, supply and
demand, inflation, cost of money (interest rates), and the economic base of an area - ✔✔Economic
Factors ✔✔general swings of increasing or decreasing activity and property values; they depend on
business cycles. - ✔✔Housing Cycles ✔✔impacts buyer's markets and seller's markets. -
✔✔Supply and Demand ✔✔Supply and demand impacts - ✔✔Buyer's markets and seller's markets
✔✔increase in cost of goods or services. - ✔✔Inflation ✔✔the interest rate one must pay to use
another's money - ✔✔Cost of money ✔✔the main business or industry by which a community
supports and is critical to maintaining home values and is a primary factor in determining the supply
of real estate.
,Question:
Answer:
Economic Base ✔✔influence real estate markets on state and local levels include revenue
generating laws (taxation and specific tax policies) - ✔✔Governmental Factors ✔✔influence real
estate include demographics, population growth, population age, the family size, and population
migration. - ✔✔Social Factors ✔✔What can be considered is the most important factor in
determining supply in the real estate market? - ✔✔Economic Base of an Area ✔✔What would
more MOST LIKELY to contribute to a seller's market? - ✔✔High Construction Costs
✔✔BigTime Manufacturers are getting ready to build a new factory in Smithton that should attract
hundreds of new workers to the small town. What would you expect the immediate effect on home
prices in the area to be? - ✔✔Home prices should rise initially. ✔✔What acronym can you use to
remember the broad forces that can impact the real estate market? - ✔✔PEGS ✔✔Which situation
would NOT likely result in a seller's market? - ✔✔migration out of an area ✔✔Who sets the
interest rates that banks charge for mortgages? - ✔✔individual banks and other lenders ✔✔Brian
attends his real estate company's party and, after having a few too many cocktails, drives home. He
is pulled over and arrested for driving under the influence. Two months later Brian is convicted and
serves a year of probation and pays a fine. Brian does not notify the regulatory agency of this
conviction. Which best describes this situation? - ✔✔Brian may be punished for not disclosing the
conviction Failing to notify a regulatory agency of the conviction is a violation. ✔✔A rental
property has a return rate of 8%. The monthly net rental is $600. What is the market value of the
property? - ✔✔$90,000 Rate of return is computed by dividing the annual net income by the rate of
return. In this case, multiply the monthly $600 income by 12 to get the annual income. The gross
annual income, $7,200, divided by 8%, is $90,000. ✔✔In most states, the listing broker has a
fiduciary duty to the - ✔✔client A broker has a fiduciary duty to the client, while the broker's
salespeople have a duty to the broker. ✔✔While determining the net operating income of an
investment property, an appraiser will not take into account - ✔✔interest expense Although tax
deductible, the amount of interest an owner pays is not used to calculate the net operating income.
Remember, anything related to debt service is an owner's expense. ✔✔After listing a property that
the agent believes is overpriced, the agent returns to the office and vents his frustration to a fellow
licensee at the brokerage. Which duty has the agent breached? - ✔✔loyalty If an agent decides to
take the listing at the price indicated by the seller, the agent must be loyal to the seller and not imply
that the list price is unreasonable. ✔✔The property sale will close on April 15, 2010. Taxes are
$4,300 per year and are paid through December 2009. Calculate the seller's share of taxes using a
calendar year (365 days). - ✔✔$1,236.98 There isn't really a formula for calculating prorations.
First, calculate a cost per day, then determine the number of days in which taxes haven't been paid,
and then multiply the number of days by the daily tax rate. Substitute numbers for the known factors
in the formula. Step 1: Determine the Daily Tax Rate: $4, = $11.7808; Step 2: Determine
the Number of Days: January 31 + February 28 + March 31 + April 15 = 105; Step 3: Determine
Amount Owed: 105 days x $11.7808 per day = $1,236.984. The seller owes $1,236.98 in taxes.
, ✔✔Which of the following statements is true regarding real estate trust accounts in Georgia? -
✔✔A broker may have multiple trust accounts as long as each is registered with the Real Estate
Commission Interest-bearing trust accounts are permitted as long as the contract states that the
designated trust money will be held in an interest-bearing account as well as to whom the interest
will be paid. Trust money must be held in a separate FDIC insured "trust account." A broker is not
limited to the number of trust accounts he or she may open as long as each account number and bank
account name is provided to the Commission. ✔✔The real estate closing date is May 25. The lender
uses a 360-day calendar for interest proration and payments are due on the 15th day of each month.
The loan balance is $84,000 with an interest rate of 8%. How much accrued interest will the seller
owe at closing? - ✔✔$186.67 The 360-day calendar assumes every month has 30 days. $84,000 x
8% = $6,720 for the total interest by year. $6,720 divided by 12 = $560 for the interest per month.
$560 divided by 30 days = 18.6666 for the interest per day. 10 x 18.6666 = 186.67 for the interest
for 10 days. ✔✔All of the following are true about a CAM license in Georgia EXCEPT: - ✔✔It
allows the licensee to manage residential and condominium communities as well as provide real
estate services to homebuyers and sellers The holder of a CAM license must satisfy license law
education and exam requirements. The license only permits the holder to engage in community
management activities. The license may be acquired without holding a salesperson's license but a
salesperson or broker might additionally acquire the CAM license. ✔✔Which of the following
property legal descriptions is NOT used in Georgia? - ✔✔Rectangular survey system The metes and
bounds system and lot, block system are the only two legal descriptions for property used in
Georgia. ✔✔The Real Estate Settlement Procedures Act (RESPA) is administered by the -
✔✔Department of Housing and Urban Development HUD administers RESPA rules and
compliance. The Division of Real Estate regulates real estate professionals. ALTA regulates title
companies. NAR promulgates a code of ethics. ✔✔Which of the following statements is true
concerning Georgia's Real Estate Commissioner? - ✔✔The Commissioner is hired by the Real
Estate Commission If the Commissioner or any of the Commissioner's staff holds a real estate
license, it must be placed on inactive status. The Commissioner is not a member of the Real Estate
Commission, but is hired by the Commission. ✔✔A property generated $135,000 income per year.
A vacancy and collection loss of 5% is normal for the area. The building expenses are $8500. What
was the gross income? - ✔✔$135,000 Gross income is the total amount a property generates in
income before expenses are removed. ✔✔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
