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COLIBRI PRACTICE TEST EXAM 2024/2025
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COLIBRI PRACTICE TEST EXAM 2024/2025
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COLIBRI PRACTICE TEST EXAM 2024/20253. In real estate, which of the following is correct about the term "title?"
- Precise Answer ✔✔
Taxes and insurance are often prepaid at closing to establish the escrow
account. On which page of the Closing Disclosure form will the buyer
see an accounting of the escrow account set up? - Precise Answer
✔✔Page two, under other costs
On page two of the form, other costs are itemized for buyers and sellers.
Taxes, prepaids, and initial escrow payment at closing - usually two
months' worth, are paid by the buyer and shown on page 2.
How is the sales price reflected on the closing form for the buyer and the
seller? - Precise Answer ✔✔The sales price is a debit to the buyer and a
credit to the seller
The seller receives the sales price less adjustment at closings or debit.
The buyer pays the sales price less adjustment for deposit and loans.
Which clause in a deed defines the ownership taken by the grantee and
clarifies the purpose of the deed? - Precise Answer ✔✔The Habendum
Clause
,Also known as the "to have and to hold" the Habendum Clause. This is
the clause that describes the rights being transferred. Exceptions and
reservations are included in this clause.
When a cap rate used with income capitalization is high, the following
relationship with sales price exists: - Precise Answer ✔✔risk and cap
rate are higher, the sales price is usually lower.
Cap rate is likened to the risk factor when purchasing an investment
property - a high cap rate indicates high risk, and often the sales price is
lower.
Property is located next to a busy freeway; semi-trucks use the freeway
all night long. After two years on the market, the seller reduced his price
by 25%. Which loss of value has occurred? - Precise Answer
✔✔Economic or external obsolescence
Economic or external obsolescence is a loss of value outside of the
perimeter boundary of the property, beyond the owner's control, and
almost always incurable.
A homestead exemption in Florida is available to those who qualify and
file documents making the Florida home a primary residence. The base
homestead exemption is: - Precise Answer ✔✔$25,000
,The base homestead exemption is $25,000. There is an additional
$25,000 available for qualified property owners; however, the additional
$25,000 does NOT apply to school taxes.
A closing is March 5 for a rental property with an annual tax bill of
$2800. Calculate and show the debit and credits for the tax proration
between the buyer and seller using the 365-day method, the day of
closing belongs to the buyer. - Precise Answer ✔✔debit seller $483.29;
credit buyer $483.29
The purpose of proration is to assign the amount owed to the responsible
party. The taxes will be paid by the buyer at the end of the year. The
buyer needs money from the seller for the days that the seller owned.
$2800/365 = $7.67 per day. Jan = 31 days, Feb. = 28 days and March =
4 day total 63 X $7.67 = $483.21 that the seller owes for the time he
owned. NOTE: The amount taken from the seller is given to the buyer -
it is the same amount. Use 3 decimal places and don't clear the calculator
between steps.
John is a sales associate who has complaints against him for making
false statements about the property and for giving advice about the
purchase contract. This is the third time these same violations have been
investigated. If John is found guilty of violating these two practices at
the formal hearing, the maximum fine John can face is: - Precise Answer
✔✔10,000
For second and subsequent violations, $2500 to $5000 fine and
suspension for up to six years or revocation. The fine is $5000 maximum
for each offense.
, A deed and a real estate purchase agreement would not be considered
valid without: - Precise Answer ✔✔an adequate legal description.
The property must be accurately described in any purchase agreement
and deed, so there is no question about what is being transferred. In a
deed, the legal description is in the premises clause.
A mortgage is a legal contract with terms that benefit both the lender and
the borrower. Which clause is a benefit to the borrower and NOT to the
lender? - Precise Answer ✔✔The Defeasance clause
If the borrower defaults, the lender can call the balance due; the
maintenance clause required the borrower to keep the property in good
condition, and the alienation clause prevents the sale to another
borrower. The defeasance clause requires the lender to record a
document when the loan is paid - killing the lien.
When a homeowner is delinquent on property taxes, the first step taken
by the government in correcting the late payment is: - Precise Answer
✔✔the delinquent taxpayer names are published in the local paper.
Property taxes are delinquent on April first of the year following non-
payment. A list of delinquent payers is published in a local county wide-
newspaper.
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