COLIBRI REAL ESTATE FINAL EXAM
ACTUAL TESTBANK 2026 COMPLETE 1335
PLUS QUESTIONS WITH CORRECT
DETAILED ANSWERS GRADED A+
⩥ Absolute Auction. Answer: An auction where the property is sold to
the highest qualified bidder; there is no minimum bid or reserve or right
of confirmation. Also called Without Reserve.
⩥ Abstract of Title. Answer: A brief, chronological summary of the
recorded documents affecting title to a particular parcel of real property.
⩥ Acceleration Clause. Answer: A contract clause giving the lender the
right to declare the entire loan amount due immediately because of
borrower's default, or other reasons in the contract.
⩥ Acceptance. Answer: When a party agrees to the terms of an offer to
enter into a contract, thereby creating a binding contract.
⩥ Accession. Answer: The acquisition of title to land by its addition to
real estate already owned, through human actions or natural processes.
⩥ Accounting. Answer: In an agency relationship, the agent's fiduciary
duty to the principal to strictly account for all monies received.
,⩥ Accretion. Answer: A gradual addition to dry land by the forces of
nature, as when the tide deposits water-borne sediment on shoreline
property.
⩥ Accrued. Answer: an accumulation
⩥ Accrued Expense. Answer: Item on a settlement statement for which
the cost has been incurred, but the expense has not yet been paid. Such
expenses are considered to be paid in arrears.
⩥ Acknowledgement. Answer: Recognition of validity; a document
signers declaration to an authorized official (usually notary public) that
he is signing voluntarily
⩥ Acre. Answer: A measure of land equal to 43,560 square feet. One
square mile contains 640 acres.
⩥ Actionable Fraud. Answer: Fraud that meets certain criteria, so that a
victim can successfully sue. The victim must prove the defendant
concealed material facts or made false statements (intentionally or
negligently) with the intent to induce the victim to enter a transaction,
and the victim was harmed by relying on misrepresentations.
,⩥ Actual Eviction. Answer: The legal process of forcing someone off of
a property or preventing someone from re-entering the property
⩥ Actual Fraud. Answer: An intentional misrepresentation or
concealment of a material fact; when a person actively conceals material
information or makes statements that he knows are false or misleading.
⩥ Actual Notice. Answer: Personal knowledge of a fact, rather than
knowledge imputed or inferred by law
⩥ Ad Valorem. Answer: Latin for according to value
⩥ Adequate Consideration. Answer: Consideration that is comparable in
value to the consideration the other party to the contract is giving.
⩥ Adjustable rate mortgage (ARM). Answer: A type of loan structure
that permits the lender to periodically change or vary the interest rate
charged, based on a standard index.
⩥ Administrator. Answer: A person appointed by the probate court to
manage and distribute the estate of a deceased person when no executor
is named in the will or there is no will.
, ⩥ Adverse Possession. Answer: The actual, open, notorious, hostile, and
continuous possession of another's land under a claim of title. Possession
for a statutory period may be a means of acquiring title.
⩥ Affidavit of title. Answer: A statement, sworn in front of a notary
public or other authorized official, by the seller or grantor of property
that identifies the grantor, identifies the grantor's marital status, and
certifies that the grantor has no new judgments, liens, divorces,
unrecorded deeds, or other potential title defects since the title
examination was completed. It also certifies that the grantor is indeed in
possession of the property.
⩥ Affiliated business arrangement (ABA). Answer: A situation where a
person in a position to refer settlement services-or an associate of that
person-has either an affiliate relationship with or a direct or beneficial
ownership interest of more than 1% in a provider of settlement services
and who then refers business to that provider or in some way influences
the selection of that provider.
⩥ Agency. Answer: A relationship of trust created when one person (the
principal) gives another person (the agent) the right to represent the
principal in dealings with third parties.
⩥ Agency coupled with an interest. Answer: A situation in which the
agent has a personal interest in the subject of the agency, as when one
co-owner has been authorized by the others to sell their property.
ACTUAL TESTBANK 2026 COMPLETE 1335
PLUS QUESTIONS WITH CORRECT
DETAILED ANSWERS GRADED A+
⩥ Absolute Auction. Answer: An auction where the property is sold to
the highest qualified bidder; there is no minimum bid or reserve or right
of confirmation. Also called Without Reserve.
⩥ Abstract of Title. Answer: A brief, chronological summary of the
recorded documents affecting title to a particular parcel of real property.
⩥ Acceleration Clause. Answer: A contract clause giving the lender the
right to declare the entire loan amount due immediately because of
borrower's default, or other reasons in the contract.
⩥ Acceptance. Answer: When a party agrees to the terms of an offer to
enter into a contract, thereby creating a binding contract.
⩥ Accession. Answer: The acquisition of title to land by its addition to
real estate already owned, through human actions or natural processes.
⩥ Accounting. Answer: In an agency relationship, the agent's fiduciary
duty to the principal to strictly account for all monies received.
,⩥ Accretion. Answer: A gradual addition to dry land by the forces of
nature, as when the tide deposits water-borne sediment on shoreline
property.
⩥ Accrued. Answer: an accumulation
⩥ Accrued Expense. Answer: Item on a settlement statement for which
the cost has been incurred, but the expense has not yet been paid. Such
expenses are considered to be paid in arrears.
⩥ Acknowledgement. Answer: Recognition of validity; a document
signers declaration to an authorized official (usually notary public) that
he is signing voluntarily
⩥ Acre. Answer: A measure of land equal to 43,560 square feet. One
square mile contains 640 acres.
⩥ Actionable Fraud. Answer: Fraud that meets certain criteria, so that a
victim can successfully sue. The victim must prove the defendant
concealed material facts or made false statements (intentionally or
negligently) with the intent to induce the victim to enter a transaction,
and the victim was harmed by relying on misrepresentations.
,⩥ Actual Eviction. Answer: The legal process of forcing someone off of
a property or preventing someone from re-entering the property
⩥ Actual Fraud. Answer: An intentional misrepresentation or
concealment of a material fact; when a person actively conceals material
information or makes statements that he knows are false or misleading.
⩥ Actual Notice. Answer: Personal knowledge of a fact, rather than
knowledge imputed or inferred by law
⩥ Ad Valorem. Answer: Latin for according to value
⩥ Adequate Consideration. Answer: Consideration that is comparable in
value to the consideration the other party to the contract is giving.
⩥ Adjustable rate mortgage (ARM). Answer: A type of loan structure
that permits the lender to periodically change or vary the interest rate
charged, based on a standard index.
⩥ Administrator. Answer: A person appointed by the probate court to
manage and distribute the estate of a deceased person when no executor
is named in the will or there is no will.
, ⩥ Adverse Possession. Answer: The actual, open, notorious, hostile, and
continuous possession of another's land under a claim of title. Possession
for a statutory period may be a means of acquiring title.
⩥ Affidavit of title. Answer: A statement, sworn in front of a notary
public or other authorized official, by the seller or grantor of property
that identifies the grantor, identifies the grantor's marital status, and
certifies that the grantor has no new judgments, liens, divorces,
unrecorded deeds, or other potential title defects since the title
examination was completed. It also certifies that the grantor is indeed in
possession of the property.
⩥ Affiliated business arrangement (ABA). Answer: A situation where a
person in a position to refer settlement services-or an associate of that
person-has either an affiliate relationship with or a direct or beneficial
ownership interest of more than 1% in a provider of settlement services
and who then refers business to that provider or in some way influences
the selection of that provider.
⩥ Agency. Answer: A relationship of trust created when one person (the
principal) gives another person (the agent) the right to represent the
principal in dealings with third parties.
⩥ Agency coupled with an interest. Answer: A situation in which the
agent has a personal interest in the subject of the agency, as when one
co-owner has been authorized by the others to sell their property.
