COLIBRI REAL ESTATE FINAL EXAM 2025
COMPLETE 200 ACTUAL EXAM QUESTIONS AND
DETAILED VERIFIED ANSWERS (100% CORRECT)
GRADED A+
Factors that affect the real estate market - Correct Answer - 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). - Correct Answer - 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 - Correct Answer - Economic Factors
general swings of increasing or decreasing activity and property values;
they depend on business cycles. - Correct Answer - Housing Cycles
impacts buyer's markets and seller's markets. - Correct Answer - Supply
and Demand
pg. 1
,Supply and demand impacts - Correct Answer - Buyer's markets and
seller's markets
increase in cost of goods or services. - Correct Answer - Inflation
the interest rate one must pay to use another's money - Correct Answer -
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. - Correct Answer - Economic Base
influence real estate markets on state and local levels include revenue
generating laws (taxation and specific tax policies) - Correct Answer -
Governmental Factors
influence real estate include demographics, population growth, population
age, the family size, and population migration. - Correct Answer - Social
Factors
What can be considered is the most important factor in determining supply
in the real estate market? - Correct Answer - Economic Base of an Area
What would more MOST LIKELY to contribute to a seller's market? -
Correct Answer - 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? -
Correct Answer - Home prices should rise initially.
pg. 2
,What acronym can you use to remember the broad forces that can impact
the real estate market? - Correct Answer - PEGS
Which situation would NOT likely result in a seller's market? - Correct
Answer - migration out of an area
Who sets the interest rates that banks charge for mortgages? - Correct
Answer - 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? - Correct Answer -
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? - Correct Answer - $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 - Correct
Answer - client
A broker has a fiduciary duty to the client, while the broker's salespeople
have a duty to the broker.
pg. 3
, Which of the following property legal descriptions is NOT used in Georgia?
- Correct Answer - 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 - Correct Answer - 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? - Correct Answer - The Commissioner is hired by the Real
Estate Commission
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? - Correct Answer – No
While determining the net operating income of an investment property, an
appraiser will not take into account - Correct Answer - 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? - Correct Answer - loyalty
pg. 4
COMPLETE 200 ACTUAL EXAM QUESTIONS AND
DETAILED VERIFIED ANSWERS (100% CORRECT)
GRADED A+
Factors that affect the real estate market - Correct Answer - 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). - Correct Answer - 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 - Correct Answer - Economic Factors
general swings of increasing or decreasing activity and property values;
they depend on business cycles. - Correct Answer - Housing Cycles
impacts buyer's markets and seller's markets. - Correct Answer - Supply
and Demand
pg. 1
,Supply and demand impacts - Correct Answer - Buyer's markets and
seller's markets
increase in cost of goods or services. - Correct Answer - Inflation
the interest rate one must pay to use another's money - Correct Answer -
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. - Correct Answer - Economic Base
influence real estate markets on state and local levels include revenue
generating laws (taxation and specific tax policies) - Correct Answer -
Governmental Factors
influence real estate include demographics, population growth, population
age, the family size, and population migration. - Correct Answer - Social
Factors
What can be considered is the most important factor in determining supply
in the real estate market? - Correct Answer - Economic Base of an Area
What would more MOST LIKELY to contribute to a seller's market? -
Correct Answer - 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? -
Correct Answer - Home prices should rise initially.
pg. 2
,What acronym can you use to remember the broad forces that can impact
the real estate market? - Correct Answer - PEGS
Which situation would NOT likely result in a seller's market? - Correct
Answer - migration out of an area
Who sets the interest rates that banks charge for mortgages? - Correct
Answer - 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? - Correct Answer -
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? - Correct Answer - $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 - Correct
Answer - client
A broker has a fiduciary duty to the client, while the broker's salespeople
have a duty to the broker.
pg. 3
, Which of the following property legal descriptions is NOT used in Georgia?
- Correct Answer - 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 - Correct Answer - 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? - Correct Answer - The Commissioner is hired by the Real
Estate Commission
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? - Correct Answer – No
While determining the net operating income of an investment property, an
appraiser will not take into account - Correct Answer - 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? - Correct Answer - loyalty
pg. 4
