Colibri Real Estate Practice Final Exam
A seller decided to back out of a sales contract for no good reason. What recourse does
the buyer have? - CORRECT ANSWER-To sue for specific performance.
What are the primary advantages of PEX piping? - CORRECT ANSWER-PEX piping is
able to withstand both high and low temperatures and it is highly resistant to chemicals.
How does Planned Unit Development zoning differ from ordinary zoning? - CORRECT
ANSWER-I requires that multiple tracts of land be developed according to a single
design for efficient use of space.
Home Hoarding Realty is advertising to the public that their managing broker has been
in the business 37 years and has sold over 1,250 homes. This is an example of -
CORRECT ANSWER-institutional advertising
Which of the following would qualify as an example of retail property? - CORRECT
ANSWER-A shopping center
Which of the following statements best describes what happens with a judicial
foreclosure? - CORRECT ANSWER-The mortgaged property is sold under the
supervision of a court.
Which of the following best describes the principle of conformity? - CORRECT
ANSWER-A home maintains its highest value by being in a neighborhood with similar-
type housing.
The cost of doing direct mail advertising depends on - CORRECT ANSWER-The
frequency of the mailings
A type of mortgage which allows the lender to increase the outstanding balance of a
loan up to the original amount of the loan in order to advance additional funds is called
an - CORRECT ANSWER-open-end mortgage
Why is the condition of bearing walls more important than non bearing walls? -
CORRECT ANSWER-Bearing walls support the ceiling and the roof.
Owner Tom decided to lease out his basement to a college student. By leasing the
basement, Tom has - CORRECT ANSWER-transferred a portion of his bundle of rights
, What is a forecast of income and expenses that can be projected over five years? -
CORRECT ANSWER-Stabilized budget
A buyer told broker Lena that she wants to move to Cuban neighborhood. Then the
buyer asked if Lena could show her the best home in a Cuban area. How should Lena
respond to this request? - CORRECT ANSWER-Lena should explain to the buyer that
she ethically and legally cannot recommend housing based on national origin.
Which of the following wills may be considered invalid? - CORRECT ANSWER-A will
that is not signed.
Broker Torrey hires salesperson Wes as an independent contractor. As an independent
contractor, Wes can expect which of the following from Broker Torrey? - CORRECT
ANSWER-Performance Expectations
Of the following liens: a $100,000 mortgage, a $2,500 property tax bill, and a $8,000
mechanic's lien and a $25,000 judgement lien, which will be paid off first after a
foreclosure sale? - CORRECT ANSWER-The $2,500 property tax lien
On a $280,000 loan, the lender charges a 2 point service charge. How much does the
borrower have to pay for just these two points? - CORRECT ANSWER-$5,600
Neal's home has been foreclosed on and sold at a Sheriff's sale. The sale brought in
$500,000 and the total liabilities on the home were $425,000. Who receives the
additional $75,000? - CORRECT ANSWER-Neal
Broker Jon is attaching a rider strip to a For Sale sign. What information is most likely
on this rider strip? - CORRECT ANSWER-Jon's cell phone number
Which is false regarding a promissory note? - CORRECT ANSWER-It is the term used
for a note that is guaranteed or insured by a governmental agency.
What is a disadvatage of real estate investment? - CORRECT ANSWER-It is not highly
liquid
A broker induces an owner to sell by telling him that Muslims are moving into the
neighborhood. This broker is guilty of - CORRECT ANSWER-blockbusting
Given the net income of a property, the appraiser can determine an opinion of the value
for that property by - CORRECT ANSWER-Dividing by the rate of capitalization
Morgan owned a large condominium on the ocean. She died and no legal heirs were
found. Who will receive title to the property? - CORRECT ANSWER-The State or
County
A seller decided to back out of a sales contract for no good reason. What recourse does
the buyer have? - CORRECT ANSWER-To sue for specific performance.
What are the primary advantages of PEX piping? - CORRECT ANSWER-PEX piping is
able to withstand both high and low temperatures and it is highly resistant to chemicals.
How does Planned Unit Development zoning differ from ordinary zoning? - CORRECT
ANSWER-I requires that multiple tracts of land be developed according to a single
design for efficient use of space.
Home Hoarding Realty is advertising to the public that their managing broker has been
in the business 37 years and has sold over 1,250 homes. This is an example of -
CORRECT ANSWER-institutional advertising
Which of the following would qualify as an example of retail property? - CORRECT
ANSWER-A shopping center
Which of the following statements best describes what happens with a judicial
foreclosure? - CORRECT ANSWER-The mortgaged property is sold under the
supervision of a court.
Which of the following best describes the principle of conformity? - CORRECT
ANSWER-A home maintains its highest value by being in a neighborhood with similar-
type housing.
The cost of doing direct mail advertising depends on - CORRECT ANSWER-The
frequency of the mailings
A type of mortgage which allows the lender to increase the outstanding balance of a
loan up to the original amount of the loan in order to advance additional funds is called
an - CORRECT ANSWER-open-end mortgage
Why is the condition of bearing walls more important than non bearing walls? -
CORRECT ANSWER-Bearing walls support the ceiling and the roof.
Owner Tom decided to lease out his basement to a college student. By leasing the
basement, Tom has - CORRECT ANSWER-transferred a portion of his bundle of rights
, What is a forecast of income and expenses that can be projected over five years? -
CORRECT ANSWER-Stabilized budget
A buyer told broker Lena that she wants to move to Cuban neighborhood. Then the
buyer asked if Lena could show her the best home in a Cuban area. How should Lena
respond to this request? - CORRECT ANSWER-Lena should explain to the buyer that
she ethically and legally cannot recommend housing based on national origin.
Which of the following wills may be considered invalid? - CORRECT ANSWER-A will
that is not signed.
Broker Torrey hires salesperson Wes as an independent contractor. As an independent
contractor, Wes can expect which of the following from Broker Torrey? - CORRECT
ANSWER-Performance Expectations
Of the following liens: a $100,000 mortgage, a $2,500 property tax bill, and a $8,000
mechanic's lien and a $25,000 judgement lien, which will be paid off first after a
foreclosure sale? - CORRECT ANSWER-The $2,500 property tax lien
On a $280,000 loan, the lender charges a 2 point service charge. How much does the
borrower have to pay for just these two points? - CORRECT ANSWER-$5,600
Neal's home has been foreclosed on and sold at a Sheriff's sale. The sale brought in
$500,000 and the total liabilities on the home were $425,000. Who receives the
additional $75,000? - CORRECT ANSWER-Neal
Broker Jon is attaching a rider strip to a For Sale sign. What information is most likely
on this rider strip? - CORRECT ANSWER-Jon's cell phone number
Which is false regarding a promissory note? - CORRECT ANSWER-It is the term used
for a note that is guaranteed or insured by a governmental agency.
What is a disadvatage of real estate investment? - CORRECT ANSWER-It is not highly
liquid
A broker induces an owner to sell by telling him that Muslims are moving into the
neighborhood. This broker is guilty of - CORRECT ANSWER-blockbusting
Given the net income of a property, the appraiser can determine an opinion of the value
for that property by - CORRECT ANSWER-Dividing by the rate of capitalization
Morgan owned a large condominium on the ocean. She died and no legal heirs were
found. Who will receive title to the property? - CORRECT ANSWER-The State or
County
