Colibri Real Estate Practice Final UPDATED
Exam Questions and CORRECT Answers
Which type of report would a property manager prepare for their owner client to lay out the plan
to finance long-term improvements? - CORRECT ANSWER - capital reserve budget
Broker Jim signs a listing agreement with Seller Grace and a buyer agency agreement with
Buyer Pat. Both Grace and Pat signed written disclosure statements agreeing to this arrangement.
What is this relationship called? - CORRECT ANSWER - consensual dual agency
Which statement about asbestos is true? - CORRECT ANSWER - it can cause health
problems by releasing airborne particles when old or damaged
Real estate agents are typically what kind of agent? - CORRECT ANSWER - special agent
Which of these properties would be considered a non-homestead property? - CORRECT
ANSWER - warehouse
Which of the following is considered a fixed operating expense? - CORRECT ANSWER -
insurance premiums
A drainfield, distribution box, and perforated pipes are all elements of what? - CORRECT
ANSWER - septic system
Dwayne was four months into his one-year lease when property owner Larry sold the property.
Which statement is correct? - CORRECT ANSWER - the new owner must honor the lease
until it expires
Ben, the property manager of a 10-unit building shows an apartment to a woman who uses a
wheelchair. The woman says that she would need to make some modifications, such as adding
grab bars in the shower and removing some carpeting in the bedroom. How should Ben respond?
, - CORRECT ANSWER - he must allow the tenant to make the modifications at her
expense
how might transfer tax in New York be documented when property is conveyed? - CORRECT
ANSWER - as a revenue stamp
why might a tenant in an apartment building a send a letter of intent to the building's owner? -
CORRECT ANSWER - to reserve a specific unit when building undergoes a conversion to
a condomonium
Sandy rents space in a building for her beauty and tanning salon. She pays rent for occupancy,
but the owner of the building pays the taxes, insurance, and other operating expenses. What kind
of lease does Sandy have? - CORRECT ANSWER - gross lease
Amanda Green sold her property to Sally Fay. Amanda will retain title to the property until Sally
has paid in full. What kind of contract do Amanda and Sally have? - CORRECT
ANSWER - land contract
What is the authority that state and local governments have to enact and enforce laws that protect
the public's health, safety, morals, and general welfare? - CORRECT ANSWER - police
power
which property would most probably have the shortest lease term? - CORRECT
ANSWER - apartment
what is the purpose of private mortgage insurance? - CORRECT ANSWER - it protects
the lender against loss in case the borrower defaults
which describes an ad valorem tax? - CORRECT ANSWER - based on the assessed value
of property
Exam Questions and CORRECT Answers
Which type of report would a property manager prepare for their owner client to lay out the plan
to finance long-term improvements? - CORRECT ANSWER - capital reserve budget
Broker Jim signs a listing agreement with Seller Grace and a buyer agency agreement with
Buyer Pat. Both Grace and Pat signed written disclosure statements agreeing to this arrangement.
What is this relationship called? - CORRECT ANSWER - consensual dual agency
Which statement about asbestos is true? - CORRECT ANSWER - it can cause health
problems by releasing airborne particles when old or damaged
Real estate agents are typically what kind of agent? - CORRECT ANSWER - special agent
Which of these properties would be considered a non-homestead property? - CORRECT
ANSWER - warehouse
Which of the following is considered a fixed operating expense? - CORRECT ANSWER -
insurance premiums
A drainfield, distribution box, and perforated pipes are all elements of what? - CORRECT
ANSWER - septic system
Dwayne was four months into his one-year lease when property owner Larry sold the property.
Which statement is correct? - CORRECT ANSWER - the new owner must honor the lease
until it expires
Ben, the property manager of a 10-unit building shows an apartment to a woman who uses a
wheelchair. The woman says that she would need to make some modifications, such as adding
grab bars in the shower and removing some carpeting in the bedroom. How should Ben respond?
, - CORRECT ANSWER - he must allow the tenant to make the modifications at her
expense
how might transfer tax in New York be documented when property is conveyed? - CORRECT
ANSWER - as a revenue stamp
why might a tenant in an apartment building a send a letter of intent to the building's owner? -
CORRECT ANSWER - to reserve a specific unit when building undergoes a conversion to
a condomonium
Sandy rents space in a building for her beauty and tanning salon. She pays rent for occupancy,
but the owner of the building pays the taxes, insurance, and other operating expenses. What kind
of lease does Sandy have? - CORRECT ANSWER - gross lease
Amanda Green sold her property to Sally Fay. Amanda will retain title to the property until Sally
has paid in full. What kind of contract do Amanda and Sally have? - CORRECT
ANSWER - land contract
What is the authority that state and local governments have to enact and enforce laws that protect
the public's health, safety, morals, and general welfare? - CORRECT ANSWER - police
power
which property would most probably have the shortest lease term? - CORRECT
ANSWER - apartment
what is the purpose of private mortgage insurance? - CORRECT ANSWER - it protects
the lender against loss in case the borrower defaults
which describes an ad valorem tax? - CORRECT ANSWER - based on the assessed value
of property
