COLIBRI REAL ESTATE FINAL EXAM 2026
WITH 100% ACCURATE ANSWERS
1. Describe the role of the seller in the closing process of a real estate
transaction.
The seller signs the deed to transfer ownership of the property
to the buyer.
The seller negotiates the commission with the real estate agent.
The seller conducts the home inspection before closing.
The seller prepares the mortgage documents for the buyer.
2. Describe the concept of liquidated damages in the context of real
estate transactions.
Liquidated damages are penalties imposed by the buyer for late
closing.
Liquidated damages refer to a predetermined amount of
money that the seller retains if the buyer fails to complete the
purchase.
Liquidated damages are fees paid by the seller to the buyer for
contract breaches.
Liquidated damages are costs associated with property
maintenance.
3. What term describes the act of using property as security for a loan?
Encumbrance
Lien
Foreclosure
Hypothecation
,4. What are riparian rights in the context of real estate?
Rights for wetlands
Rights for lakes
Rights for rivers
Rights for oceans
5. What does CMA stand for in real estate?
Comparative Market Analysis
Comprehensive Market Analysis
Certified Market Appraisal
Current Market Assessment
6. What legislation was enacted in 1866 to eliminate racial discrimination in
real estate transactions?
Fair Housing Act
Civil Rights Act of 1866
Civil Rights Act of 1964
Housing and Urban Development Act
7. On closing day who signs the deed to transfer the property from seller
to buyer?
the seller
the buyer & seller
the seller and escrow agent
the buyer
,8. What type of listing agreement ensures that a broker receives
compensation regardless of who sells the property?
Exclusive Agency Listing
Open Listing
Exclusive Right to Sell
Net Listing
9. Describe why discussing commission rates among brokers can be
considered a violation of antitrust laws.
Discussing commission rates can lead to price-fixing, which
undermines competition and violates antitrust laws.
It ensures that all brokers receive equal compensation.
It helps brokers to set fair prices for their services.
It allows brokers to collaborate on market strategies.
10. What is the maximum payout amount from the Real Estate Guaranty
Fund for a single transaction?
$5,000
$50,000
$20,000
$10,000
11. What is another term used to refer to the principal in a real estate
transaction?
Client
Broker
Agent
, Tenant
12. Two persons own a property as tenants in common, if one dies, what
happens to the ownership of the property?
The survivor becomes a joint tenant with the heirs of the
deceased
The property must be sold and the proceeds distributed
The survivor becomes a tenant in common with the heirs of the
deceased
The survivor becomes sole owner
13. When a gas company runs gas lines across someone's property, it is
a(n):
easement in gross
trade fixture
appurtenant easement
appurtenant profit
14. Who is responsible for signing the deed during a real estate closing?
the real estate agent
the buyer
the seller
the lender
15. In a real estate transaction, if a buyer fails to close on a property and
the contract specifies liquidated damages of $10,000, what would the
seller be entitled to receive?
$5,000
WITH 100% ACCURATE ANSWERS
1. Describe the role of the seller in the closing process of a real estate
transaction.
The seller signs the deed to transfer ownership of the property
to the buyer.
The seller negotiates the commission with the real estate agent.
The seller conducts the home inspection before closing.
The seller prepares the mortgage documents for the buyer.
2. Describe the concept of liquidated damages in the context of real
estate transactions.
Liquidated damages are penalties imposed by the buyer for late
closing.
Liquidated damages refer to a predetermined amount of
money that the seller retains if the buyer fails to complete the
purchase.
Liquidated damages are fees paid by the seller to the buyer for
contract breaches.
Liquidated damages are costs associated with property
maintenance.
3. What term describes the act of using property as security for a loan?
Encumbrance
Lien
Foreclosure
Hypothecation
,4. What are riparian rights in the context of real estate?
Rights for wetlands
Rights for lakes
Rights for rivers
Rights for oceans
5. What does CMA stand for in real estate?
Comparative Market Analysis
Comprehensive Market Analysis
Certified Market Appraisal
Current Market Assessment
6. What legislation was enacted in 1866 to eliminate racial discrimination in
real estate transactions?
Fair Housing Act
Civil Rights Act of 1866
Civil Rights Act of 1964
Housing and Urban Development Act
7. On closing day who signs the deed to transfer the property from seller
to buyer?
the seller
the buyer & seller
the seller and escrow agent
the buyer
,8. What type of listing agreement ensures that a broker receives
compensation regardless of who sells the property?
Exclusive Agency Listing
Open Listing
Exclusive Right to Sell
Net Listing
9. Describe why discussing commission rates among brokers can be
considered a violation of antitrust laws.
Discussing commission rates can lead to price-fixing, which
undermines competition and violates antitrust laws.
It ensures that all brokers receive equal compensation.
It helps brokers to set fair prices for their services.
It allows brokers to collaborate on market strategies.
10. What is the maximum payout amount from the Real Estate Guaranty
Fund for a single transaction?
$5,000
$50,000
$20,000
$10,000
11. What is another term used to refer to the principal in a real estate
transaction?
Client
Broker
Agent
, Tenant
12. Two persons own a property as tenants in common, if one dies, what
happens to the ownership of the property?
The survivor becomes a joint tenant with the heirs of the
deceased
The property must be sold and the proceeds distributed
The survivor becomes a tenant in common with the heirs of the
deceased
The survivor becomes sole owner
13. When a gas company runs gas lines across someone's property, it is
a(n):
easement in gross
trade fixture
appurtenant easement
appurtenant profit
14. Who is responsible for signing the deed during a real estate closing?
the real estate agent
the buyer
the seller
the lender
15. In a real estate transaction, if a buyer fails to close on a property and
the contract specifies liquidated damages of $10,000, what would the
seller be entitled to receive?
$5,000
