COLIBRI REAL ESTATE PRINCIPLES FINAL 2026
PRACTICE TEST PAPER CONTRACTS AND
AGENCY REVIEW SHEET FULL SOLUTIONS
◉ Owner Tom decided to lease out his basement to a college
student. By leasing the basement, Tom has Answer: transferred a
portion of his bundle of rights
◉ What is a forecast of income and expenses that can be projected
over five years? Answer: Stabilized budget
◉ A buyer told broker Lena that she wants to move to Cuban
neighborhood. Then the buyer asked if Lena could show her the best
home in a Cuban area. How should Lena respond to this request?
Answer: Lena should explain to the buyer that she ethically and
legally cannot recommend housing based on national origin.
◉ Which of the following wills may be considered invalid? Answer:
A will that is not signed.
◉ Broker Torrey hires salesperson Wes as an independent
contractor. As an independent contractor, Wes can expect which of
the following from Broker Torrey? Answer: Performance
Expectations
,◉ Which of the following statements best describes what happens
with a judicial foreclosure? Answer: The mortgaged property is sold
under the supervision of a court.
◉ Which of the following best describes the principle of conformity?
Answer: A home maintains its highest value by being in a
neighborhood with similar-type housing.
◉ The cost of doing direct mail advertising depends on Answer: The
frequency of the mailings
◉ A type of mortgage which allows the lender to increase the
outstanding balance of a loan up to the original amount of the loan
in order to advance additional funds is called an Answer: open-end
mortgage
◉ Of the following liens: a $100,000 mortgage, a $2,500 property tax
bill, and a $8,000 mechanic's lien and a $25,000 judgement lien,
which will be paid off first after a foreclosure sale? Answer: The
$2,500 property tax lien
◉ On a $280,000 loan, the lender charges a 2 point service charge.
How much does the borrower have to pay for just these two points?
Answer: $5,600
, ◉ A seller decided to back out of a sales contract for no good reason.
What recourse does the buyer have? Answer: To sue for specific
performance.
◉ What are the primary advantages of PEX piping? Answer: PEX
piping is able to withstand both high and low temperatures and it is
highly resistant to chemicals.
◉ How does Planned Unit Development zoning differ from ordinary
zoning? Answer: I requires that multiple tracts of land be developed
according to a single design for efficient use of space.
◉ Home Hoarding Realty is advertising to the public that their
managing broker has been in the business 37 years and has sold
over 1,250 homes. This is an example of Answer: institutional
advertising
◉ Which of the following would qualify as an example of retail
property? Answer: A shopping center
◉ Neal's home has been foreclosed on and sold at a Sheriff's sale.
The sale brought in $500,000 and the total liabilities on the home
were $425,000. Who receives the additional $75,000? Answer: Neal
PRACTICE TEST PAPER CONTRACTS AND
AGENCY REVIEW SHEET FULL SOLUTIONS
◉ Owner Tom decided to lease out his basement to a college
student. By leasing the basement, Tom has Answer: transferred a
portion of his bundle of rights
◉ What is a forecast of income and expenses that can be projected
over five years? Answer: Stabilized budget
◉ A buyer told broker Lena that she wants to move to Cuban
neighborhood. Then the buyer asked if Lena could show her the best
home in a Cuban area. How should Lena respond to this request?
Answer: Lena should explain to the buyer that she ethically and
legally cannot recommend housing based on national origin.
◉ Which of the following wills may be considered invalid? Answer:
A will that is not signed.
◉ Broker Torrey hires salesperson Wes as an independent
contractor. As an independent contractor, Wes can expect which of
the following from Broker Torrey? Answer: Performance
Expectations
,◉ Which of the following statements best describes what happens
with a judicial foreclosure? Answer: The mortgaged property is sold
under the supervision of a court.
◉ Which of the following best describes the principle of conformity?
Answer: A home maintains its highest value by being in a
neighborhood with similar-type housing.
◉ The cost of doing direct mail advertising depends on Answer: The
frequency of the mailings
◉ A type of mortgage which allows the lender to increase the
outstanding balance of a loan up to the original amount of the loan
in order to advance additional funds is called an Answer: open-end
mortgage
◉ Of the following liens: a $100,000 mortgage, a $2,500 property tax
bill, and a $8,000 mechanic's lien and a $25,000 judgement lien,
which will be paid off first after a foreclosure sale? Answer: The
$2,500 property tax lien
◉ On a $280,000 loan, the lender charges a 2 point service charge.
How much does the borrower have to pay for just these two points?
Answer: $5,600
, ◉ A seller decided to back out of a sales contract for no good reason.
What recourse does the buyer have? Answer: To sue for specific
performance.
◉ What are the primary advantages of PEX piping? Answer: PEX
piping is able to withstand both high and low temperatures and it is
highly resistant to chemicals.
◉ How does Planned Unit Development zoning differ from ordinary
zoning? Answer: I requires that multiple tracts of land be developed
according to a single design for efficient use of space.
◉ Home Hoarding Realty is advertising to the public that their
managing broker has been in the business 37 years and has sold
over 1,250 homes. This is an example of Answer: institutional
advertising
◉ Which of the following would qualify as an example of retail
property? Answer: A shopping center
◉ Neal's home has been foreclosed on and sold at a Sheriff's sale.
The sale brought in $500,000 and the total liabilities on the home
were $425,000. Who receives the additional $75,000? Answer: Neal
