COLIBRI REAL ESTATE EXAM TEST BANK SOLVED QUESTIONS 100 PERCENT CORRECT
ANSWERS
Colibri REAL Estate EXAM Comprehensive Script
2026/2027 Questions and Answers Verified Solutions
Latest Update
Question:
Which are false for the requirements of being eligible to become a licensee in Georgia?
Answer:
Have a two year degree from an institution of higher learning or college A degree of higher learning
is not a requirement to become a licensee. A high school diploma or GED meet license law
requirements
Question:
What is NOT considered when determining whether an item is a fixture or personal property?
Answer:
value of the annexed item The value of the item is not considered. Most often the item is valuable.
Intention and manner of annexation are the most heavily weighed factors in this decision.
Question:
Specific performance is
Answer:
a legal remedy available to the buyer to enforce the terms of the contract When one party has the
right to cancel the contract, the contract is voidable. When the terms of the contract have been
specifically fulfilled, the contract is said to be executed. The action of a court of law to make a seller
specifically perform the obligations called for in the contract is called specific performance.
Question:
Regarding a borrower's ability to take out a second mortgage, either for part of a down payment or
to finance the difference between the appraised value of a home and the higher selling price, which
of the following is true in Georgia?
,Answer:
All of the answers On a conventional loan, the 80/10/10 formula would apply on an 80% or lower
LTV where the borrower has either 10% cash for a down payment or 10% equity in the home. Then,
the lender would allow the borrower a 10% second mortgage. As for FHA loans, a lender would
allow a second mortgage as long as the first and second mortgages do not exceed 97.75%. Credit
scores are generally directly tied to this type of financing.
Question:
All of the following would appear as a debit on the seller's closing statement EXCEPT:
Answer:
Prepaid property taxes for the calendar year in which the closing takes place The seller would be
debited at closing any mortgage interest accrued on an existing home loan since the last payment
was made. The seller would need to pay any additional existing liens on the property at closing, as
well as paying the buyer for the share of unpaid property taxes that had accrued since the beginning
of the tax year. If the seller has already paid the property taxes for the year, it would show up as a
credit or prepaid property taxes on the seller's closing statement.
Question:
Agent Cindy wishes to leave her company, ABC Real Estate, owned by Bob Broker. She currently
has three sales pending and four active listings. What will happen to these?
Answer:
the active listings belong to Bob, and Cindy will be paid for pending sales as per her contract with
the office Unless stated otherwise in her agreement with the office, all listings belong to the office.
Handling of pending sales (ones that have sold and not yet closed) should be covered in Cindy's
employment agreement.
Question:
For the income approach to appraisal, debt service refers to
Answer:
the mortgage payments Anything related to the financing of the investment is debt service; it should
not be counted as an expense.
,Question:
listing broker produces a ready, willing, and able buyer at contractual terms acceptable to the seller.
However, the seller refuses to pay the broker the earned compensation. In going to court to sue for
commission, the broker must prove all of the following EXCEPT:
Answer:
There was a closing for the real estate transaction When suing for a commission, a broker must first
prove he or she held an active license at the time of the listing, then also produce a valid listing
agreement, as well as show that the broker was the procuring cause of the sale. No sale has to be
consummated for the broker to prove his or her case.
Question:
Capitalization rate refers to the
Answer:
rate of return used by investors The investor can calculate the present value of future income. The
formula is: Net Income / Rate = Value.
Question:
A salesperson creates marketing material for herself, and one of the advertising flyers states her
name, her identification as a real estate consultant, and highlights her specialty in condominium
sales. License law would also require the licensee to include:
Answer:
The name of her employing broker Any type of advertising done by a salesperson must also include
the name of the affiliate's employing broker. There are no requirements to include office addresses,
salesperson's telephone numbers, or license numbers.
Question:
Transferring one's rights or obligations under a contract to another and being relieved of liability
best describes
Answer:
novation An assignment does not relieve the withdrawing party of liability; novation does.
, Question:
What type of land use does NOT comply with the zoning restriction for its location, but is permitted
because it benefits the public?
Answer:
conditional use Conditional uses (hospitals, schools, etc.) usually do not comply with zoning
limitations. Nonconforming uses are properties that were in compliance with an old zone. Inverse
condemnation is a court action by a private landowner against the government, seeking
compensation for damage to property that resulted from government action. Spot zoning refers to an
illegal rezone that favors a particular property owner without justification.
Question:
A listing agreement is an agreement between
Answer:
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.
Question:
If a home is being partially financed by a purchase money mortgage (PMM) in Georgia, all of the
following would be true EXCEPT:
Answer:
The buyer would receive legal title to the property at closing Since the buyer is, in effect, giving the
mortgage or security claim to the seller, the buyer would be the mortgagor, and the seller the
mortgagee. Also, as the seller is giving a loan and the buyer is receiving the loan, the amount would
be debited to the seller and credited to the buyer. The PMM is, by definition, owner financing. The
buyer receives equitable, not legal, title to the property at this point.
Question:
For the purposes of a legal description, a real estate sales contract or deed in Georgia might indicate:
Answer:
ANSWERS
Colibri REAL Estate EXAM Comprehensive Script
2026/2027 Questions and Answers Verified Solutions
Latest Update
Question:
Which are false for the requirements of being eligible to become a licensee in Georgia?
Answer:
Have a two year degree from an institution of higher learning or college A degree of higher learning
is not a requirement to become a licensee. A high school diploma or GED meet license law
requirements
Question:
What is NOT considered when determining whether an item is a fixture or personal property?
Answer:
value of the annexed item The value of the item is not considered. Most often the item is valuable.
Intention and manner of annexation are the most heavily weighed factors in this decision.
Question:
Specific performance is
Answer:
a legal remedy available to the buyer to enforce the terms of the contract When one party has the
right to cancel the contract, the contract is voidable. When the terms of the contract have been
specifically fulfilled, the contract is said to be executed. The action of a court of law to make a seller
specifically perform the obligations called for in the contract is called specific performance.
Question:
Regarding a borrower's ability to take out a second mortgage, either for part of a down payment or
to finance the difference between the appraised value of a home and the higher selling price, which
of the following is true in Georgia?
,Answer:
All of the answers On a conventional loan, the 80/10/10 formula would apply on an 80% or lower
LTV where the borrower has either 10% cash for a down payment or 10% equity in the home. Then,
the lender would allow the borrower a 10% second mortgage. As for FHA loans, a lender would
allow a second mortgage as long as the first and second mortgages do not exceed 97.75%. Credit
scores are generally directly tied to this type of financing.
Question:
All of the following would appear as a debit on the seller's closing statement EXCEPT:
Answer:
Prepaid property taxes for the calendar year in which the closing takes place The seller would be
debited at closing any mortgage interest accrued on an existing home loan since the last payment
was made. The seller would need to pay any additional existing liens on the property at closing, as
well as paying the buyer for the share of unpaid property taxes that had accrued since the beginning
of the tax year. If the seller has already paid the property taxes for the year, it would show up as a
credit or prepaid property taxes on the seller's closing statement.
Question:
Agent Cindy wishes to leave her company, ABC Real Estate, owned by Bob Broker. She currently
has three sales pending and four active listings. What will happen to these?
Answer:
the active listings belong to Bob, and Cindy will be paid for pending sales as per her contract with
the office Unless stated otherwise in her agreement with the office, all listings belong to the office.
Handling of pending sales (ones that have sold and not yet closed) should be covered in Cindy's
employment agreement.
Question:
For the income approach to appraisal, debt service refers to
Answer:
the mortgage payments Anything related to the financing of the investment is debt service; it should
not be counted as an expense.
,Question:
listing broker produces a ready, willing, and able buyer at contractual terms acceptable to the seller.
However, the seller refuses to pay the broker the earned compensation. In going to court to sue for
commission, the broker must prove all of the following EXCEPT:
Answer:
There was a closing for the real estate transaction When suing for a commission, a broker must first
prove he or she held an active license at the time of the listing, then also produce a valid listing
agreement, as well as show that the broker was the procuring cause of the sale. No sale has to be
consummated for the broker to prove his or her case.
Question:
Capitalization rate refers to the
Answer:
rate of return used by investors The investor can calculate the present value of future income. The
formula is: Net Income / Rate = Value.
Question:
A salesperson creates marketing material for herself, and one of the advertising flyers states her
name, her identification as a real estate consultant, and highlights her specialty in condominium
sales. License law would also require the licensee to include:
Answer:
The name of her employing broker Any type of advertising done by a salesperson must also include
the name of the affiliate's employing broker. There are no requirements to include office addresses,
salesperson's telephone numbers, or license numbers.
Question:
Transferring one's rights or obligations under a contract to another and being relieved of liability
best describes
Answer:
novation An assignment does not relieve the withdrawing party of liability; novation does.
, Question:
What type of land use does NOT comply with the zoning restriction for its location, but is permitted
because it benefits the public?
Answer:
conditional use Conditional uses (hospitals, schools, etc.) usually do not comply with zoning
limitations. Nonconforming uses are properties that were in compliance with an old zone. Inverse
condemnation is a court action by a private landowner against the government, seeking
compensation for damage to property that resulted from government action. Spot zoning refers to an
illegal rezone that favors a particular property owner without justification.
Question:
A listing agreement is an agreement between
Answer:
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.
Question:
If a home is being partially financed by a purchase money mortgage (PMM) in Georgia, all of the
following would be true EXCEPT:
Answer:
The buyer would receive legal title to the property at closing Since the buyer is, in effect, giving the
mortgage or security claim to the seller, the buyer would be the mortgagor, and the seller the
mortgagee. Also, as the seller is giving a loan and the buyer is receiving the loan, the amount would
be debited to the seller and credited to the buyer. The PMM is, by definition, owner financing. The
buyer receives equitable, not legal, title to the property at this point.
Question:
For the purposes of a legal description, a real estate sales contract or deed in Georgia might indicate:
Answer:
