Illinois Colibri Final Exam Question and Answers Graded A+
When the buyer checks "yes" to dual agency on a Buyer Representation agreement, what does the
buyer actually agree to? - AnswersBy checking "yes" to this paragraph, the buyer is only acknowledging
that the possibility of dual agency exists.
Sam paid $500,000 for a five-unit apartment building. The gross income is $1,000 per month per unit,
with annual expenses of $15,000 annually. What was the capitalization rate for this investment? -
Answers9%
What is the difference between market value and market price, if any? - AnswersMarket value is an
estimate; market price is the price at which a property sold.
Which of the following is true of an amortizing loan? - AnswersPart of each periodic payment is applied
to repayment of the loan balance in advance and part is applied to payment of interest in arrears.
A contract in which both parties exchange promises is a: - Answersbilateral contract
What technique is used to elicit "yes" responses from a client? - AnswersKeep up a running commentary
- for example, this is the living room.
If a landlord rejects a prospective tenant based on a bad credit report, according to the fair credit
reporting Act, the prospective tenant: - Answersmay require the landlord to submit all of his reasons for
rejection in writing.
All of the following is included as part of a survey, EXCEPT: - Answersthe type of improvements best
suited for the land
How do you stay in control of a call from a prospect? - AnswersAsking questions
On the day prior to closing, the buyer does a walk-through and sees that the seller took a chandelier
that was supposed to remain. What should the buyer's broker do? - AnswersAdvise the buyer to speak
with his/her attorney about a financial adjustment, at the closing, for the cost of the chandelier.
A loan applicant has an annual gross income of $36,000. How much will a lender allow the applicant to
pay for monthly housing expense to qualify for a loan if the lender uses an income ratio of 28%? -
Answers$840
Which of the following is considered a fixed operating expense? - Answersinsurance premiums
Which statement is true about a comparative market analysis (CMA)? - AnswersIt can help a seller
decide what to ask for the property
Beginning after the 2013 renewal, individuals renewing or obtaining a managing broker's license must
complete how many CE credit hours, in addition to the Broker Management Course? - Answers12 credit
hours
, An interest in real estate that includes the right to possess is known as: - AnswersAn estate in land
Under Title III of this Act, discrimination in commercial properties is prohibited. To which Act does this
apply? - AnswersAmerican With Disabilities Act
When two adjacent pieces of property are joined together, the value of the one larger parcel may be
greater than the value of the two separately. Which principle of value is this? - AnswersAssemblage.
"Realestate" includes such things as: - Answersfences, sidewalks, and piers on a parcel of land.
If an owner of real property dies without leaving a will and with no legal heirs, what will generally
happen to the property? - AnswersIt will revert to the state or county by escheat.
Radon gas can be traced back to: - Answersgroundwater pollutants
RESPA applies to all of the following EXCEPT which? - AnswersSeller-financed loan or a Loan involving a
first mortgage
Which duty an agent has to his/her client never stops? - Answersconfidentiality
When does the seller receive a copy of the listing agreement? - AnswersAt the time of signing.
A Recorded Plat System contains all of the following, EXCEPT: - Answersa contiguous group of lots, which
is called a block.
Which tax is imposed on any deed or instrument which conveys interest in property? - AnswersReal
estate transfer tax
Under the Equal Credit Opportunity Act, a lender, or a real estate agent who assists a seller in qualifying
a potential buyer, may not - Answersask the buyer/borrower about his religion or national origin
Regulation Z applies to which of these situations? - Answers$75,000 condominium loan
Which statement is true about the Junk Fax Prevention Act is False? - AnswersLicensees must stop faxes
upon request.
What accounting tools are used to determine a buyer's ability to pay off a loan? - AnswersIncome Ratio
and Debt Ratio
John is doing a CMA for his potential sellers. He has collected the data on the seller's property and
collected data on a number of comparables. Now he's ready to make his price adjustments. Which
statement is true? - AnswersIf a comparable lacks a feature the subject property has, he will subtract the
value of that feature from the comparable.
If any dispute between the parties arises regarding the deposited escrow money, the sponsoring broker
should _________. - Answersnot release the money without a written release from both parties or both
parties' duly authorized agents (power of attorney or attorney at law).
When the buyer checks "yes" to dual agency on a Buyer Representation agreement, what does the
buyer actually agree to? - AnswersBy checking "yes" to this paragraph, the buyer is only acknowledging
that the possibility of dual agency exists.
Sam paid $500,000 for a five-unit apartment building. The gross income is $1,000 per month per unit,
with annual expenses of $15,000 annually. What was the capitalization rate for this investment? -
Answers9%
What is the difference between market value and market price, if any? - AnswersMarket value is an
estimate; market price is the price at which a property sold.
Which of the following is true of an amortizing loan? - AnswersPart of each periodic payment is applied
to repayment of the loan balance in advance and part is applied to payment of interest in arrears.
A contract in which both parties exchange promises is a: - Answersbilateral contract
What technique is used to elicit "yes" responses from a client? - AnswersKeep up a running commentary
- for example, this is the living room.
If a landlord rejects a prospective tenant based on a bad credit report, according to the fair credit
reporting Act, the prospective tenant: - Answersmay require the landlord to submit all of his reasons for
rejection in writing.
All of the following is included as part of a survey, EXCEPT: - Answersthe type of improvements best
suited for the land
How do you stay in control of a call from a prospect? - AnswersAsking questions
On the day prior to closing, the buyer does a walk-through and sees that the seller took a chandelier
that was supposed to remain. What should the buyer's broker do? - AnswersAdvise the buyer to speak
with his/her attorney about a financial adjustment, at the closing, for the cost of the chandelier.
A loan applicant has an annual gross income of $36,000. How much will a lender allow the applicant to
pay for monthly housing expense to qualify for a loan if the lender uses an income ratio of 28%? -
Answers$840
Which of the following is considered a fixed operating expense? - Answersinsurance premiums
Which statement is true about a comparative market analysis (CMA)? - AnswersIt can help a seller
decide what to ask for the property
Beginning after the 2013 renewal, individuals renewing or obtaining a managing broker's license must
complete how many CE credit hours, in addition to the Broker Management Course? - Answers12 credit
hours
, An interest in real estate that includes the right to possess is known as: - AnswersAn estate in land
Under Title III of this Act, discrimination in commercial properties is prohibited. To which Act does this
apply? - AnswersAmerican With Disabilities Act
When two adjacent pieces of property are joined together, the value of the one larger parcel may be
greater than the value of the two separately. Which principle of value is this? - AnswersAssemblage.
"Realestate" includes such things as: - Answersfences, sidewalks, and piers on a parcel of land.
If an owner of real property dies without leaving a will and with no legal heirs, what will generally
happen to the property? - AnswersIt will revert to the state or county by escheat.
Radon gas can be traced back to: - Answersgroundwater pollutants
RESPA applies to all of the following EXCEPT which? - AnswersSeller-financed loan or a Loan involving a
first mortgage
Which duty an agent has to his/her client never stops? - Answersconfidentiality
When does the seller receive a copy of the listing agreement? - AnswersAt the time of signing.
A Recorded Plat System contains all of the following, EXCEPT: - Answersa contiguous group of lots, which
is called a block.
Which tax is imposed on any deed or instrument which conveys interest in property? - AnswersReal
estate transfer tax
Under the Equal Credit Opportunity Act, a lender, or a real estate agent who assists a seller in qualifying
a potential buyer, may not - Answersask the buyer/borrower about his religion or national origin
Regulation Z applies to which of these situations? - Answers$75,000 condominium loan
Which statement is true about the Junk Fax Prevention Act is False? - AnswersLicensees must stop faxes
upon request.
What accounting tools are used to determine a buyer's ability to pay off a loan? - AnswersIncome Ratio
and Debt Ratio
John is doing a CMA for his potential sellers. He has collected the data on the seller's property and
collected data on a number of comparables. Now he's ready to make his price adjustments. Which
statement is true? - AnswersIf a comparable lacks a feature the subject property has, he will subtract the
value of that feature from the comparable.
If any dispute between the parties arises regarding the deposited escrow money, the sponsoring broker
should _________. - Answersnot release the money without a written release from both parties or both
parties' duly authorized agents (power of attorney or attorney at law).
