Real Estate Colibri Practice Exam

Real Estate Colibri Practice Exam Questions And Answers Verified Which item below can help protect against a home with a listed incorrect street address or legal description in public records? - 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? - Yes. Robert can encumber his property Which location is an industrial coal plant least likely to be located? - Adjacent to an elementary school What is the least likely answer needed in a "legal consent" scenario? - 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? - Legal Consent Mortgage lenders are required to disclose financing costs and annual percentage rate to the borrower under which law or regulation? - Truth in Lending Earl orally agreed to an 18-month lease with landlord Blake. Is this contract enforceable? - 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? - 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? - The complaint is forwarded to a hearing panel of the Professional Standards Committee Listing agents must present ________. - All formal and informal offers Which of the following principles are included in the Preamble to the Code of Ethics? - 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? - Agency coupled with an interest Who can train office staff at a brokerage firm in weekly meetings? - 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? - Zero dollars Which action does an escrow officer typically work on in a home sale transaction? - 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? - The National Association of Real Estate Exchanges What is "one click away" as it relates to the real estate profession? - 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? - Conversion and Criminal Fraud Broker Joy just signed a listing agreement with a seller. When should Joy schedule an office tour? - Within a week after the listing is taken Under the Rectangular survey system, which direction do the principal meridian lines run on a map? - North-South According to Article 3, what does cooperating with other brokers involve? - Sharing information about listings and making listings available for showing. Which of the following would be a type of authorized discipline that may be issued by NAR in the case of an ethics violation? - Letter of Warning or Letter of Reprimand When an agent deposits their buyer's escrow funds into their personal account, then what is the action referred to under Agency Law? - Commingling The Statute of Frauds usually requires or applies to _______. - Written contracts, mutually voluntary legal agreements, and contracts without duress What does title insurance best protect against? - past histories Who must a principal broker supervise in a real estate office? - All licensees affiliated to the principal broker and all other unlicensed employees at that office. A residential REALTOR® with no commercial real experience has a new client who wants her to list his commercial real estate. What must the REALTOR® do before taking the listing? - Inform the client of her lack of expertise in commercial real estate. What must a licensee first obtain before engaging in property management? - A current written property management agreement. What is another name for Ostensible Authority? - Apparent Authority What is the most common description when a licensee accidentally deposits client funds into the wrong bank account? - Commingling What type of clause allows a broker to collect a commission for some period of time after the listing expires? - A carryover clause A REALTOR® is preparing a valuation of a property for a fee on a sliding scale depending on what value of the property he comes up with. Is this allowed? - No, fees for preparing appraisals or other valuations must not be contingent upon the amount of the appraisal or valuation. All the licensees of Red Cardinal Realty and Blue Wildcat Realty met together and decided not to do future business with Hilltopper Realty because of their low commission rates. This is an example of _____. - a group boycott. Buyer Immanuel's broker finds out information about the seller which will help Immanuel in the transaction. Loyalty is one of the duties of _____. - protection. When must offers be presented by an Agent to the Seller? - In a timely manner Buyer Emilio wants to see a For Sale by Owner (FSBO) property. What might his broker do before showing Emilio the FSBO? - Have Emilio agree to pay the broker's commission if he buys the FSBO. Taxation, money supply, and zoning regulations are examples of what as it relates to properties? - Government influence on values Article 10 mandates that REALTORS® may not deny professional services on the basis of any of the protected classes. What areas of their practice does this Article apply to? - This applies to both the public services they provide and in their real estate employment practices. Where can agents and brokers find additional rules and restrictions for various forms of advertising options? - "Do not call" lists, MLS IDX, and NAR Membership marks manual A REALTOR® keeps all monies in one business account that he uses for all business expenditures and transfers monies out at appropriate times during a transaction, is this allowable? - No, a REALTOR® must keep monies coming into their possession in trust for other persons in separate special accounts in an appropriate financial institution. Which third party report is likeliest to note any new fences, driveways, or garages added to the property site? - Survey When should a Principal Broker, office manager, or accountant reconcile or balance their trust fund records? - Every month Who cannot act as the closing agent in a purchase deal? - Principal Which situation below is the least likeliest to be covered under a Standard Coverage title insurance policy? - Unrecorded leasehold interest held by a lessee 10 years ago What is the first step taken by a contractor under