pg. 1 Colibri Real Estate Exam Latest 2025/2026 Complete Exam with 200 Actual Questions and Correct Detailed Answers (Verified Answers) Graded A+
Who could a real estate licensee represent in a real estate transaction?Select all correct responses. - Correct Answer - Buyers Landlords Sellers Tenants
At the end of the year, what tax form will an independent contractor receive to document their income? - Correct Answer - 1099-MISC If the Commissioner or any of the Commissioner's staff holds a real estate license, it must be placed on inactive status. The Commissioner is not a member of the Real Estate Commission, but is hired by the Commission.
A property generated $135,000 income per year. A vacancy and collection loss of 5% is normal for the area. The building expenses are $8500. What was the gross income? - Correct Answer - $135,000 Gross income is the total amount a property generates in income before expenses are removed.
The agreement of sale should provide that if the property is damaged or destroyed by fire before the deal is consummated, the loss will fall upon the
- Correct Answer - the seller 1 / 4
pg. 2 The "risk of loss" is transferred to the buyer upon the signing of the sales contract. Thus, the sales contract should include a clause that would keep the risk of loss on the seller and require the seller to maintain insurance. If this clause were not inserted in the sales contract, then the buyer would be responsible for any damage to the property and still have to buy the property, regardless of condition.
In order to be considered an independent contractor, a licensee's compensation must be - Correct 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? - Correct Answer - The licensee must be paid for hours spent in the brokerage office.
What are the tasks for which a property manager is typically responsible?Select all correct responses. - Correct Answer - Collecting Rents Leasing Units Maintaining Tenant Relationships Managing the Maintenance and Repair of the Building
The theory of supply and demand states that when supply exceeds demand, prices will fall. - Correct Answer - True
Real estate cycles tend to lag somewhat behind general business cycles in response to supply and demand. - Correct Answer - True
As the supply of homes in the area rises, what would you expect to happen to home prices in the short term? - Correct Answer - Home prices will fall slightly from their high points. 2 / 4
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When Widget moves out, what type of market is Big City likely to experience? - Correct Answer - Buyer's Market
What is the gross commission on a property that sold for $450,000 with a rate of commission of 6%? - Correct Answer - $27,000 $450,000 x .06 = $27,000
Cost inflation can affect new home prices as builders pass along their higher costs for labor and materials. - Correct Answer - True
Higher taxes tend to encourage spending and investing. - Correct Answer - False
P-E-G-S - Correct Answer - Physical Economic Government Social
A situation in the housing market when there are many homes available for sale, but few buyers. - Correct Answer - Buyer's Market
The interest rate that people or businesses must pay to use another's money for their own purposes. - Correct Answer - Cost of Money
The main business or industry in an area that supports and sustains the community. - Correct Answer - Economic Base
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pg. 4 An increase in the cost of goods or services or too many people wanting too few goods. - Correct Answer - Inflation
A characteristic of real property; each piece of land, each building, and each house is a unique piece of real estate. Also called Uniqueness or Heterogeneity. - Correct Answer - Non-Homogeneity
General swings in real estate activity, resulting in increasing or decreasing activity and property values, during different phases of the cycle. - Correct Answer - Real Estate Cycles
A physical characteristic of real property that says there is a limited supply of real estate; the perceived supply of a good or service relative to the demand for the item. - Correct Answer - Scarcity
A situation in the housing market when a large number of buyers are looking for houses in an area of limited availability. - Correct Answer - Seller's Market
An economic principle that says that for all products, goods, and services when supply exceeds demand, prices will fall and when demand exceeds supply, prices will rise. - Correct Answer - Supply and Demand
These associates take and approve loan applications, appraise properties, assess risk. They can find jobs with savings and loan associations, mutual savings banks, commercial banks, mortgage companies, endowments, and government agencies. - Correct Answer - Real Estate Finance
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