COLIBRI NJ REAL ESTATE ACTUAL PAPER
2026 QUESTIONS WITH SOLUTIONS
GRADED A+
◉Ellie is very regimented. She likes to be in the office by 8 a.m. and
be home by 5:30 p.m. She likes that same precision in her monthly
budget—she wants to know what's coming in and how much she can
expect to put into her IRA. She is a good candidate for a career in
real estate sales. Answer: False
◉Phil, a real estate licensee, considers going to work for JJ Realty.
Broker Jana James offers him a 60%-40% split on commission. If JJ
Realty takes in $5,000 total commission on Phil's first sale, what is
Phil's split? Answer: $3,000
◉A real estate licensee is more likely to be an employee of his
broker. Answer: False
◉If a broker supervises the real estate activities of an associated
licensee, that licensee CANNOT be considered an independent
contractor. Answer: False
,◉A real estate licensee who is an independent contractor is paid
based on successful real estate transactions, not on hours worked.
Answer: True
◉Generically speaking, a person who, for a fee, sells, lists, leases,
exchanges, negotiates, or otherwise deals in the real estate of others
or represents publicly that they do so. Answer: Broker
◉A business that serves as an intermediary between buyers and
sellers and/or lessees and lessors of real estate. Answer: Brokerage
◉Insurance that protects real estate licensees from liability due to
mistakes or negligence. It does not cover claims related to fraud or
discrimination. Answer: Errors and Omissions Insurance (E&O)
◉Under common law, a person who contracts to do a job for another
but maintains control over how the task will be carried out, rather
than following detailed instructions. Answer: Independent
Contractor
◉A person licensed under state law to practice real estate. Answer:
Licensee
◉Any real estate licensee who is a member of the National
Association of REALTORS® (NAR) and his or her affiliated
,state/local boards. Only members may use the term REALTOR® as
it's a registered trademark of NAR. Answer: REALTOR®
◉Generically speaking, a real estate licensee agent who is associated
with a broker and as such may perform most of the acts a broker can
on behalf of the broker. Also called Sales Associate. Answer:
Salesperson
◉A real estate licensee who is treated as an independent contractor
for tax purposes when specified conditions are met: proper
licensing; compensation based on sales; and services performed
under a written contract. Answer: Statutory Nonemployee
◉In which field do the majority of new licensees begin their work?
Answer: Residential Sales
◉Which is NOT an advantage to a career in real estate sales?
Answer: the option to double commission percentages during slow
months
◉Licensee Louie has worked for Rick, the broker at ABC Realty, for
20 years. Louie has been accused of negligence for not disclosing a
material fact to a buyer. Which statement is TRUE? Answer: Rick can
be held liable for Louie's misconduct.
, ◉At the end of the year, what tax form will an independent
contractor receive to document their income? Answer: 1099-MISC
◉Who could a real estate licensee represent in a real estate
transaction? Select all correct responses. Answer: Buyers
Landlords
Sellers
Tenants
All are correct
◉Steven just successfully finished his required real estate
prelicensing course. Which statement is TRUE? Answer: Once he
joins the NAR, he can call himself a REALTOR®.
◉In order to be considered an independent contractor, a licensee's
compensation must be Answer: based on sales produced, not hours
worked.
◉For a real estate licensee, which is NOT a characteristic that
indicates they are an independent contractor? Answer: The licensee
must be paid for hours spent in the brokerage office.
2026 QUESTIONS WITH SOLUTIONS
GRADED A+
◉Ellie is very regimented. She likes to be in the office by 8 a.m. and
be home by 5:30 p.m. She likes that same precision in her monthly
budget—she wants to know what's coming in and how much she can
expect to put into her IRA. She is a good candidate for a career in
real estate sales. Answer: False
◉Phil, a real estate licensee, considers going to work for JJ Realty.
Broker Jana James offers him a 60%-40% split on commission. If JJ
Realty takes in $5,000 total commission on Phil's first sale, what is
Phil's split? Answer: $3,000
◉A real estate licensee is more likely to be an employee of his
broker. Answer: False
◉If a broker supervises the real estate activities of an associated
licensee, that licensee CANNOT be considered an independent
contractor. Answer: False
,◉A real estate licensee who is an independent contractor is paid
based on successful real estate transactions, not on hours worked.
Answer: True
◉Generically speaking, a person who, for a fee, sells, lists, leases,
exchanges, negotiates, or otherwise deals in the real estate of others
or represents publicly that they do so. Answer: Broker
◉A business that serves as an intermediary between buyers and
sellers and/or lessees and lessors of real estate. Answer: Brokerage
◉Insurance that protects real estate licensees from liability due to
mistakes or negligence. It does not cover claims related to fraud or
discrimination. Answer: Errors and Omissions Insurance (E&O)
◉Under common law, a person who contracts to do a job for another
but maintains control over how the task will be carried out, rather
than following detailed instructions. Answer: Independent
Contractor
◉A person licensed under state law to practice real estate. Answer:
Licensee
◉Any real estate licensee who is a member of the National
Association of REALTORS® (NAR) and his or her affiliated
,state/local boards. Only members may use the term REALTOR® as
it's a registered trademark of NAR. Answer: REALTOR®
◉Generically speaking, a real estate licensee agent who is associated
with a broker and as such may perform most of the acts a broker can
on behalf of the broker. Also called Sales Associate. Answer:
Salesperson
◉A real estate licensee who is treated as an independent contractor
for tax purposes when specified conditions are met: proper
licensing; compensation based on sales; and services performed
under a written contract. Answer: Statutory Nonemployee
◉In which field do the majority of new licensees begin their work?
Answer: Residential Sales
◉Which is NOT an advantage to a career in real estate sales?
Answer: the option to double commission percentages during slow
months
◉Licensee Louie has worked for Rick, the broker at ABC Realty, for
20 years. Louie has been accused of negligence for not disclosing a
material fact to a buyer. Which statement is TRUE? Answer: Rick can
be held liable for Louie's misconduct.
, ◉At the end of the year, what tax form will an independent
contractor receive to document their income? Answer: 1099-MISC
◉Who could a real estate licensee represent in a real estate
transaction? Select all correct responses. Answer: Buyers
Landlords
Sellers
Tenants
All are correct
◉Steven just successfully finished his required real estate
prelicensing course. Which statement is TRUE? Answer: Once he
joins the NAR, he can call himself a REALTOR®.
◉In order to be considered an independent contractor, a licensee's
compensation must be Answer: based on sales produced, not hours
worked.
◉For a real estate licensee, which is NOT a characteristic that
indicates they are an independent contractor? Answer: The licensee
must be paid for hours spent in the brokerage office.
