CURRENTLY TESTING SOLUTIONS OF Colibri Real Estate (Real Estate Express) Final Exam WITH ACTUAL CORRECT DETAILED ANSWERS
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Course
Colibri Real Estate
Institution
Colibri Real Estate
CURRENTLY TESTING SOLUTIONS OF Colibri Real Estate (Real
Estate Express) Final Exam WITH ACTUAL CORRECT DETAILED
ANSWERS CURRENTLY TESTING SOLUTIONS OF Colibri Real Estate (Real
Estate Express) Final Exam WITH ACTUAL CORRECT DETAILED
ANSWERS CURRENTLY TESTING SOLUTIONS OF Colibri Real Estat...
CURRENTLY TESTING SOLUTIONS OF Colibri Real Estate (Real
Estate Express) Final Exam WITH ACTUAL CORRECT DETAILED
ANSWERS
Joe Alpha of ABC Real Estate Corp. has been very successful in buying houses, fixing them up, and
reselling them. He put an advertisement in the local newspaper seeking investors to help him purchase
property and pay for renovations, promising an excellent return on investment when the properties sold.
Do you think that Joe needs a securities broker-dealer license? - ANSWER-No
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.
What are the tasks for which a property manager is typically responsible? Select all correct responses. -
ANSWER-Collecting Rents
Leasing Units
Maintaining Tenant Relationships
Managing the Maintenance and Repair of the Building
All are correct
The theory of supply and demand states that when supply exceeds demand, prices will fall. - ANSWER-
True
, Real estate cycles tend to lag somewhat behind general business cycles in response to supply and
demand. - ANSWER-True
As the supply of homes in the area rises, what would you expect to happen to home prices in the short
term? - ANSWER-Home prices will fall slightly from their high points.
When Widget moves out, what type of market is Big City likely to experience? - ANSWER-Buyer's Market
Cost inflation can affect new home prices as builders pass along their higher costs for labor and
materials. - ANSWER-True
Higher taxes tend to encourage spending and investing. - ANSWER-False
P-E-G-S - ANSWER-Physical
Economic
Government
Social
A situation in the housing market when there are many homes available for sale, but few buyers. -
ANSWER-Buyer's Market
The interest rate that people or businesses must pay to use another's money for their own purposes. -
ANSWER-Cost of Money
The main business or industry in an area that supports and sustains the community. - ANSWER-Economic
Base
An increase in the cost of goods or services or too many people wanting too few goods. - 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. - ANSWER-Non-Homogeneity
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