Colibri Real Estate Exam Prep 2026–2027:
Practice Questions, Answers &
Explanations
Which item below can help protect against a home with a listed incorrect street
address or legal description in public records? - correct answer-Standard
coverage title insurance policy and extended coverage title insurance policy
Robert owns his property and enjoys the full bundle of rights. Can he use his
property as collateral for debt? - correct answer-Yes. Robert can encumber his
property
Which location is an industrial coal plant least likely to be located? - correct
answer-Adjacent to an elementary school
What is the least likely answer needed in a "legal consent" scenario? - correct
answer-Contract
What is the name used to describe the fact that a client must have consent, free
will, and act without duress when entering a contract or business relationship? -
correct answer-Legal Consent
,Mortgage lenders are required to disclose financing costs and annual percentage
rate to the borrower under which law or regulation? - correct answer-Truth in
Lending
Earl orally agreed to an 18-month lease with landlord Blake. Is this contract
enforceable? - correct answer-No, all leases for longer than one year must be in
writing to be enforceable
Jessica can only afford a 7% down payment on her new cottage. What will she be
required to purchase at closing? - correct answer-Private Mortgage Insurance
What happens if the Grievance Committee finds that there is a potential ethics
violation and that the complaint has been appropriately filed? - correct answer-
The complaint is forwarded to a hearing panel of the Professional Standards
Committee
Listing agents must present ________. - correct answer-All formal and informal
offers
Which of the following principles are included in the Preamble to the Code of
Ethics? - correct answer-Honesty and Integrity, Fairness, and Moral conduct in
business relations
What type of agency cannot be revoked by the principal, nor is terminated if the
principal dies? - correct answer-Agency coupled with an interest
Who can train office staff at a brokerage firm in weekly meetings? - correct
answer-Principal Broker, associate brokers, and outside social media marketers
, What is the minimum earnest money deposit that a Buyer can offer to purchase a
listed home? - correct answer-Zero dollars
Which action does an escrow officer typically work on in a home sale transaction?
- correct answer-Collects earnest money deposits, orders title insurance, and
gathers third party inspection reports
What was the original name of the National Association of REALTORS® when it
was first founded? - correct answer-The National Association of Real Estate
Exchanges
What is "one click away" as it relates to the real estate profession? - correct
answer-When a viewer online can find the agent's contact information with just
one click of the mouse, smartphone, or keyboard
A broker who spends their client's $10,000 earnest money deposit on their
office's monthly expenses such as rent, utilities, and has engaged in the act of
what? - correct answer-Conversion and Criminal Fraud
Broker Joy just signed a listing agreement with a seller. When should Joy schedule
an office tour? - correct answer-Within a week after the listing is taken
Under the Rectangular survey system, which direction do the principal meridian
lines run on a map? - correct answer-North-South
Practice Questions, Answers &
Explanations
Which item below can help protect against a home with a listed incorrect street
address or legal description in public records? - correct answer-Standard
coverage title insurance policy and extended coverage title insurance policy
Robert owns his property and enjoys the full bundle of rights. Can he use his
property as collateral for debt? - correct answer-Yes. Robert can encumber his
property
Which location is an industrial coal plant least likely to be located? - correct
answer-Adjacent to an elementary school
What is the least likely answer needed in a "legal consent" scenario? - correct
answer-Contract
What is the name used to describe the fact that a client must have consent, free
will, and act without duress when entering a contract or business relationship? -
correct answer-Legal Consent
,Mortgage lenders are required to disclose financing costs and annual percentage
rate to the borrower under which law or regulation? - correct answer-Truth in
Lending
Earl orally agreed to an 18-month lease with landlord Blake. Is this contract
enforceable? - correct answer-No, all leases for longer than one year must be in
writing to be enforceable
Jessica can only afford a 7% down payment on her new cottage. What will she be
required to purchase at closing? - correct answer-Private Mortgage Insurance
What happens if the Grievance Committee finds that there is a potential ethics
violation and that the complaint has been appropriately filed? - correct answer-
The complaint is forwarded to a hearing panel of the Professional Standards
Committee
Listing agents must present ________. - correct answer-All formal and informal
offers
Which of the following principles are included in the Preamble to the Code of
Ethics? - correct answer-Honesty and Integrity, Fairness, and Moral conduct in
business relations
What type of agency cannot be revoked by the principal, nor is terminated if the
principal dies? - correct answer-Agency coupled with an interest
Who can train office staff at a brokerage firm in weekly meetings? - correct
answer-Principal Broker, associate brokers, and outside social media marketers
, What is the minimum earnest money deposit that a Buyer can offer to purchase a
listed home? - correct answer-Zero dollars
Which action does an escrow officer typically work on in a home sale transaction?
- correct answer-Collects earnest money deposits, orders title insurance, and
gathers third party inspection reports
What was the original name of the National Association of REALTORS® when it
was first founded? - correct answer-The National Association of Real Estate
Exchanges
What is "one click away" as it relates to the real estate profession? - correct
answer-When a viewer online can find the agent's contact information with just
one click of the mouse, smartphone, or keyboard
A broker who spends their client's $10,000 earnest money deposit on their
office's monthly expenses such as rent, utilities, and has engaged in the act of
what? - correct answer-Conversion and Criminal Fraud
Broker Joy just signed a listing agreement with a seller. When should Joy schedule
an office tour? - correct answer-Within a week after the listing is taken
Under the Rectangular survey system, which direction do the principal meridian
lines run on a map? - correct answer-North-South
