Colibri Real Estate Practice Exam

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• What is meant by "market value" in real estate?
• In a lease-back arrangement, what is true about the ownership of the property?
• What is another term used for a principal in a real estate context?
• What must an individual advertisement include?
• What term refers to the pledge of property as collateral for a loan?
• The term "adjacent" in real estate refers to what?
• Which term describes the most prestigious street in a town?
• Define "appraisal" in the real estate context.
• What happens to a lease when it expires and the tenant does not leave?
• What is a key difference between an easement and a license?
• In real estate, what is a "lease"?
• What does "pre-approval" mean in regards to mortgage financing?
• What does the term "encumbrance" refer to?
• Which aspect is typically included in calculating the adjusted basis of a property?
• What role does a property manager fulfill in real estate?
• What distinguishes an investment property from personal use property?
• Who funds the FHA (Federal Housing Administration)?
• What is the difference between a "partial lease" and a "full lease"?
• How many days does a broker have to pay an agent after receipt of funds?
• What do you call a rental agreement that automatically renews at the end of its term?
• A broker discussing raising commission rates can be found guilty of which violation?
• What is an appraisal in real estate?
• What is lost when entering into a dual agency situation?
• Why might a buyer choose to have a home inspection?
• When must a licensee deliver a Consumer Information Statement?
• What is typically included in residential property disclosures?
• What is one common use of the term "adjacent" in real estate listings?
• What is the primary purpose of a real estate license?
• What legal principle allows a person to claim ownership of land through continuous possession?
• Which type of damages aims to punish the defendant outside of mere compensation?
• When is lender approval necessary in real estate transactions?
• Which act eliminated all racial discrimination in purchasing and selling homes?
• What is the primary function of title insurance?
• What does the Fair Housing Act specifically prohibit?
• What occurs to property title when an individual dies without a will?
• What type of agreement allows a buyer to occupy and use a property while making payments?
• What is generally considered real property?
• Which action is prohibited for an unlicensed assistant?
• What is the primary reason for conducting a CMA?
• What restriction is placed on becoming an agent if a felony was committed?
• What document is necessary when purchasing a property that includes additional items?
• Which statement is required in a brokerage advertisement?
• The significance of knowing potential claims or liens on a property is to?
• Which term refers to the requirement of public knowledge regarding land possession?
• What does a title search reveal during a real estate transaction?
• What is a "power of attorney" in real estate transactions?
• What is the term for a man-made attachment to land that adds value?
• What is the typical duration for the validity of a real estate agent's license?
• What is the purpose of a Consumer Information Statement?
• What is the purpose of a home inspection?
• Who signs the deed at a closing?
• What is the principle of "highest and best use" in real estate?
• What does a listing agreement describe?
• What is the term for an easement that burdens one piece of land for the benefit of another?
• Which of the following is NOT an element for a valid and enforceable contract?
• Which of the following best describes personal property?
• What method describes the process that involves a beginning point, street name, and direction?
• What is least likely to be required in a lease agreement?
• Which term refers to a tenancy with specific start and end dates?
• What is a critical component required in email marketing?
• When can a licensee receive commission from both parties in the same transaction?
• What does it mean if a property is "under escrows"?
• What is the maximum payout amount from the Real Estate Guaranty Fund per transaction?
• What is a Real Estate Investment Trust (REIT)?
• What is the purpose of an exclusive right to sell listing?
• What is the appropriate term for all required payments on a mortgage including principal, interest, taxes, and insurance?
• What type of lease calculates the tenant's rent as a percentage of their sales?
• A fence that extends 3 feet onto a neighbor’s lawn is an example of what?
• How many members are there in the Real Estate Commission?
• What significant act added religion and origin as protected classes?
• What is the primary purpose of title insurance?
• What is a "contingency" in a real estate contract?
• What happens to a salesperson's license when their broker's license is revoked or suspended?
• What is the objective of a buyer's agent in a real estate transaction?
• How is "equity" defined in real estate?
• What does "due diligence" involve during real estate transactions?
• Which of the following does NOT require a permit in wetlands?
• Which document is associated with transferring real estate ownership?
• What does "subdivision" refer to in real estate development?
• What does underwriting refer to in real estate financing?
• Within how many business days must a lender deliver a loan estimate?
• Which of the following best describes a mortgage?
• What typically triggers a lead-based paint disclosure in real estate transactions?
• What term refers to an upfront amount agreed upon as compensation in case of a breach?
• What does the term "deed" refer to in real estate?
• Where is earnest money typically held during a real estate transaction?
• Which of the following statements accurately defines real property?
• What legal rights transfer with real property and run with the land?
• Involuntary liens are usually a result of which scenario?
• What type of damages are intended to compensate a plaintiff for harm caused by a defendant's actions?
• What does a "quitclaim deed" do?
• In real estate terms, what is meant by the term “appurtenances”?
• What term describes the intentional act of avoiding a report of significant defects in a property?
• In an exclusive agency agreement, when does the broker receive compensation?
• Which type of listing agreement provides the most agency representation to the seller?
• In which lease arrangement does the buyer also pay for rent and additional expenses?
• What unethical practice involves telling homeowners that property values will decline due to changing racial makeup?
• What does the acronym "MLS" stand for in real estate?
• In which type of listing agreement does a broker receive compensation regardless of who sells the property?
• What legal term refers to the compensation an agent earns for their services upon closing a deal?
• Why might a real estate transaction be classified as "contingent"?
• What type of listing allows the seller to keep a certain amount while the agent earns the remainder as commission?
• Which type of easement is often used for utilities?
• What does the acronym PITI stand for in real estate?
• In real estate, what is a broker commonly classified as?
• What activity requires a permit when dealing with wetlands?
• What is meant by "foreclosure" in real estate?
• What do closing costs refer to in a real estate transaction?
• In a dual agency relationship, what can an agent not provide?
• What is the main function of the Federal Housing Administration (FHA)?
• If an agent discovers a leak in a house that the seller is trying to hide, what is their ethical obligation?
• If a buyer backs out of a deal, what happens to the earnest money deposit?
• What distinguishes a fixed-rate mortgage from an adjustable-rate mortgage?
• What action related to wetlands requires regulatory approval?
• What is the function of a "certificate of occupancy"?
• Which factor is NOT typically included in the adjusted basis calculation?
• What is the main purpose of disclosure in real estate transactions?
• What is earnest money in the context of real estate transactions?
• A certificate of occupancy is necessary before which event?
• What does an acceleration clause allow a lender to do?
• What term describes items that are permanently attached to a property?
• What should an agent do if they take on a listing and decide to buy the house for themselves?
• Which document is least likely to require a legal description of a property?
• What is a comparative market analysis (CMA)?
• Which regulation is specific to transactions for 1-4 family residences?
• Homes built before which year must be checked for lead paint?
• Expired agreements must be kept by a broker for what duration?
• Which rights allow a property owner to use a water source that borders their land?
• What happens to the property of a tenant in common when two of three people die?
• What is a lease-purchase agreement?
• What is the main purpose of a Multiple Listing Service (MLS)?
• What type of brokerage relationship is characterized by no representation for either party?
• What happens to private mortgage insurance if it is cancelled?
• In a Joint Tenancy, what occurs to the property when three out of four tenants die?
• Which type of lease involves the buyer paying only rent with no additional costs?
• What is the main responsibility of a buyer's agent?
• What type of easement benefits a specific person rather than land?
• What role does a real estate agent often play during the closing process?
• What type of tenancy has no specified period or termination date?
• What is the primary purpose of conducting a title search in real estate transactions?
• What rights pertain to property adjacent to lakes?
• What is "residual income" in terms of a mortgage loan?
• What practice involves refusing to make loans in minority neighborhoods?
• Which properties are regulated under "wetlands" laws?
• What does "pro forma" refer to in real estate investment?
• What is a primary function of an MLS?
• Which term describes the use of property as collateral for a mortgage?
• What is considered the highest and best use of real estate in a commercial context?
• What do fair housing legislation aim to achieve?
• Which of the following is protected by the Fair Housing Act?
• What does a Comparative Market Analysis (CMA) indicate?
• What is a sale-and-leaseback transaction?
• In an open house where the agent has declined an agency relationship, what is the agent required to provide to attendees?
• Involuntary liens may indicate what about a property owner?
• For how long must a broker keep copies of agreements and funds received?
• Which best describes the term "adverse possession"?
• What is the minimum acceptable time for a lender to provide a loan estimate?
• What is the classification for lumber and concrete left at a site awaiting use?
• When is someone considered a repeat offender in the context of real estate violations?
• What is generally included in the responsibilities of a real estate agent?
• Which characteristic is not protected under the Fair Housing Act?
• What is capital gains tax in the context of real estate?
• What typically happens if a contingency is not met in a real estate contract?
• What is the penalty for second or subsequent violations of real estate rules?
• What is the term for rights associated with property adjacent to rivers?
• Why is it important to recognize the legal ownership of a property?
• What type of mortgage covers two parcels of land?
• What is the purpose of using tenant funds in property management?
• When an agent switches brokerages, what typically happens to their listings?
• What is it called when tenants remain in a property after their lease has expired?
• What type of legal description is represented by 1/4 NW of 1/2 NE of 1/4 NW?
• What is an "involuntary lien"?
• Which organization typically monitors and regulates real estate practices to ensure fairness?
• What document is primarily used to prove ownership of a property?
• How does real property differ from personal property?
• How does an appraisal benefit the buyer?
• What does zoning refer to in real estate?
• In real estate, what does fiduciary duty mean?
• In real estate, what is puffing?
• Which of the following is NOT a main type of residential property?
• What occurs when a gas company intrudes on land to fix a gas line?
• What does "investment property" refer to?
• What is a "real estate syndicate"?
• Which of the following is a legal right to use another's land for a specific purpose?
• What is the primary focus of the Civil Rights Act of 1866?
• What is the maximum fine for a first offense related to real estate regulations?
• What is a common outcome after a property inspection?
• What characterizes a graduated lease?
• How is "adjusted basis" defined in property investment?
• In real estate transactions, what is the term for misleading clients regarding property conditions?
• Which type of agent is a property manager typically classified as?
• What is the role of a broker who helps both parties reach an agreement without being in an agency relationship?
• What type of tenancy has a specific time period associated with it?
• What does escrow mean in real estate?
• What defines a short sale in the real estate market?
• If a listing is submitted to MLS, within how many hours must a customer be notified?
• Which participants are involved in a trust?
• When should the 4 business relationships be introduced to a client?
• What might be included in closing costs?