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Real Estate Colibri Practice Exam |
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Which item below can help protect against a home with a listed incorrect street address or legal description in public records? - ✔✔Standard coverage title insurance policy and extended coverage title insurance policy Robert owns his property and enjoys the full bundle of rights. Can he use his property as collateral for debt? - ✔✔Yes. Robert can encumber his property Which location is an industrial coal plant least likely to be located? - ✔✔Adjacent to an elementary school What is the least likely answer needed in a "legal consent" scenario? - ✔✔Contract What is the name used to describe the fact that a client must have consent, free will, and act without duress when entering a contract or business relationship? - ✔✔Legal Consent Mortgage lenders are required to disclose financing costs and annual percentage rate to the borrower under which law or regulation? - ✔✔Truth in Lending Earl orally agreed to an 18 - month lease with landlord Blake. Is this contract enforceable? - ✔✔No, all leases for longer than one year must be in writing to be enforceable Jessica can only afford a 7 % down payment on her new cottage. What will she be required to purchase at closing? - ✔✔Private Mortgage Insurance What happens if the Grievance Committee finds that there is a potential ethics violation and that the complaint has been appropriately filed? - ✔✔The complaint is forwarded to a hearing panel of the Professional Standards Committee
Listing agents must present. - ✔✔All formal and informal offers Which of the following principles are included in the Preamble to the Code of Ethics? - ✔✔Honesty and Integrity, Fairness, and Moral conduct in business relations What type of agency cannot be revoked by the principal, nor is terminated if the principal dies? - ✔✔Agency coupled with an interest Who can train office staff at a brokerage firm in weekly meetings? - ✔✔Principal Broker, associate brokers, and outside social media marketers What is the minimum earnest money deposit that a Buyer can offer to purchase a listed home? - ✔✔Zero dollars Which action does an escrow officer typically work on in a home sale transaction? - ✔✔Collects earnest money deposits, orders title insurance, and gathers third party inspection reports What was the original name of the National Association of REALTORS® when it was first founded? - ✔✔The National Association of Real Estate Exchanges What is "one click away" as it relates to the real estate profession? - ✔✔When a viewer online can find the agent's contact information with just one click of the mouse, smartphone, or keyboard A broker who spends their client's $ 10 ,0 00 earnest money deposit on their office's monthly expenses such as rent, utilities, and has engaged in the act of what? - ✔✔Conversion and Criminal Fraud Broker Joy just signed a listing agreement with a seller. When should Joy schedule an office tour? - ✔✔Within a week after the listing is taken Under the Rectangular survey system, which direction do the principal meridian lines run on a map? - ✔✔North-South
A REALTOR® is preparing a valuation of a property for a fee on a sliding scale depending on what value of the property he comes up with. Is this allowed? - ✔✔No, fees for preparing appraisals or other valuations must not be contingent upon the amount of the appraisal or valuation. All the licensees of Red Cardinal Realty and Blue Wildcat Realty met together and decided not to do future business with Hilltopper Realty because of their low commission rates. This is an example of _. - ✔✔a group boycott. Buyer Immanuel's broker finds out information about the seller which will help Immanuel in the transaction. Loyalty is one of the duties of _. - ✔✔protection. When must offers be presented by an Agent to the Seller? - ✔✔In a timely manner Buyer Emilio wants to see a For Sale by Owner (FSBO) property. What might his broker do before showing Emilio the FSBO? - ✔✔Have Emilio agree to pay the broker's commission if he buys the FSBO. Taxation, money supply, and zoning regulations are examples of what as it relates to properties? - ✔✔Government influence on values Article 10 mandates that REALTORS® may not deny professional services on the basis of any of the protected classes. What areas of their practice does this Article apply to? - ✔✔This applies to both the public services they provide and in their real estate employment practices. Where can agents and brokers find additional rules and restrictions for various forms of advertising options? - ✔✔"Do not call" lists, MLS IDX, and NAR Membership marks manual A REALTOR® keeps all monies in one business account that he uses for all business expenditures and transfers monies out at appropriate times during a transaction, is this allowable? - ✔✔No, a REALTOR® must keep monies coming into their possession in trust for other persons in separate special accounts in an appropriate financial institution. Which third party report is likeliest to note any new fences, driveways, or garages added to the property site? - ✔✔Survey
When should a Principal Broker, office manager, or accountant reconcile or balance their trust fund records? - ✔✔Every month Who cannot act as the closing agent in a purchase deal? - ✔✔Principal Which situation below is the least likeliest to be covered under a Standard Coverage title insurance policy? - ✔✔Unrecorded leasehold interest held by a lessee 10 years ago What is the first step taken by a contractor under the quantity survey method? - ✔✔Contractor lists all materials, equipment, and necessary labor How many acres combined are there in the NE ¼ and NW ¼ regions of Section 5? - ✔✔ 320 ( 1 / 4 or 25 % of a section has 160 acres in it - 160 * One or more licensees designated by the employing broker, with the consent of the principal, to act exclusively as the agent is described as a. - ✔✔Designated agent If a cooperating broker accepts the offer of subagency from a listing broker, to whom does the cooperating broker owe fiduciary duties? - ✔✔Seller According to Article 2 , which of the following statements are TRUE? - ✔✔REALTORS® must disclose all known material facts but are not obligated to discover latent defects in the property. How many square feet are there in ½ acre? - ✔✔ 21 , 780 (one full acre = 43 , 560 sf) Carla has been walking across a path on John's property for the past 22 years. John knows about this but has never given Carla permission. What might a court grant to Carla? - ✔✔An easement by prescription Should a licensee who represents both the buyer and seller tell the buyer about material defects on the seller's property? - ✔✔Yes, any defects known to the broker should have been disclosed to the buyer.
In order for a dispute to qualify for arbitration what type of dispute must it be? - ✔✔A contractual dispute or a non-contractual dispute as specified in Standard of Practice 17 - 4. What is established upon the signing of a contract or by the actions or spoken words between an Agent and Principal? - ✔✔Fiduciary relationship When was the Statute of Frauds first enacted? - ✔✔England in 1 677 What is the name of a standard elevation reference point in a land survey? - ✔✔Datums A "house location survey" is also called a. - ✔✔Drive-by survey Why is the condition of bearing walls more important than non-bearing walls? - ✔✔Bearing walls support the ceiling and the roof. Broker Willy has a buyer who has seen a property three times and seems ready to make an offer. However, the buyer is objecting because the air conditioning system is 9 years old. What should Willy do? - ✔✔Ask the buyer if the buyer would like to make an offer taking the age of the a/c unit into account. What is another common name for the lot and block system of legal descriptions? - ✔✔The recorded plat method How does Planned Unit Development zoning differ from ordinary zoning? - ✔✔It requires that multiple tracts of land be developed according to a single design for efficient use of space. Who has the most liability in a fiduciary relationship dispute over a real estate transaction? - ✔✔Principal Broker
A developer wants to develop an 18 - acre subdivision. He figures that the streets and common area will take up about 20 % of this overall area. If the minimum lot size is to be 10 , 000 SF, how many lots can the developer have on this property? - ✔✔ 62 lots REALTORS® intending to share or sell consumer information gathered on the Internet must - ✔✔disclose that possibility in a readily apparent manner on the site. Why would municipal governments be concerned if property values are falling? - ✔✔Because the majority of their revenue comes from real estate taxes. When property values fall, revenue for municipal governments also falls. Which of the following actions is legal in Kentucky? - ✔✔Acting for more than 1 party in a transaction with the knowledge of all parties for whom the licensee acts. Justin defaulted on his home mortgage payments. The lender obtained a court order to foreclose on the property. At the foreclosure sale, Justin's house sold for $ 339 , 000 and the unpaid balance of his loan is $ 400 , 000. What must the lender do to recover the $ 61 , 000 Justin still owes? - ✔✔Seek a deficiency judgment Dan is buying Jessica's house. The closing date (day belongs to seller) of the sale transaction is March 9 th. Current year real estate taxes are $ 1 , 900 (will be billed to Dan next year). Use the 365 - day method for prorating. What is the Jessica's share of the real estate taxes for the current year? - ✔✔$ 354 What type of bank accounts are trust funds placed into once received from clients? - ✔✔Non-interest bearing accounts What is another description for a "restrictive covenant"? - ✔✔Deed restrictions If a prospective buyer calls about a $ 1 , 000 , 000 listing, what is the most important thing a broker should do? - ✔✔Set an appointment to show the property the buyer asked about
What is NOT required in an exclusive listing agreement, per Section 35. 332? - ✔✔A listing term for more than one year Which type of third party benefit coverage protection or form of insurance is the least likely to have a physical inspection of the interior of the property? - ✔✔Standard Coverage title insurance policy What must a licensee first do before advertising listed property? - ✔✔Obtain the owner's consent Which parties typically purchase title insurance once the transaction is complete? - ✔✔Lender and buyer A party's failure to perform a specific action or obligation included in a written contract can later be construed as what by the other party in the agreement? - ✔✔Breach of Contract Who has to cover any trust fund balance shortages? - ✔✔Principal broker Commercial Law governs. - ✔✔Agency law The Code of Ethics prohibits. - ✔✔concealment of facts relating to the property or transaction What is the difference between the Articles of the Code and the Standards of Practice? - ✔✔The Articles are broad statements of ethical principles while the Standards support, interpret, and amplify the Articles under which they are included. What is one of the main factors for a Planning and Zoning Department to deny a proposed construction plan for a new restaurant? - ✔✔Lack of parking If broker Marco is showing property that was the site of a murder-suicide five years ago, he _. - ✔✔is not required to disclose the act
What does "caveat emptor" translate to in English? - ✔✔Let the buyer beware Which of the following is the correct definition of the word "ethic," according to Merriam Webster? - ✔✔Dealing with what is good and bad and with moral duty and obligation What year did the FDIC amount increase on a temporary basis to the current amount today? - ✔✔ 2008 When office vacancies are high, a likely result is - ✔✔falling rents. Which buyer would likely replace the original buyer who could not qualify for a home purchase in a multiple bid situation? - ✔✔First and backup buyer The highest price a buyer is willing to pay and the lowest price the seller will accept for a property is known as what? - ✔✔Market value Under the Rectangular survey system, which direction do the base lines run on a map? - ✔✔East-west Which land measurement system was the oldest one used in the original 13 states? - ✔✔Metes and bounds What formula or calculation is used to determine if it is worthwhile for a builder to buy a piece of raw land? - ✔✔Cost Approach The system of land ownership in the United States is known as what? - ✔✔The allodial system What is the main purpose of the Kentucky Real Estate Commission? - ✔✔To put into effect and make known the administrative regulations to effectively carry out and enforce the provisions of the Kentucky statutes governing real estate. The very fine line between acting as a licensed real estate agent and as an unlicensed attorney is described as _. - ✔✔The upper limits of a licensed agent's limited authority
What is typically used to find boundaries for properties? - ✔✔Land surveys Agency that is based upon Old English Common Law is also known as _. - ✔✔Common Law Agency The Quarry Mountain Subdivision requires all properties to have fences that are at least 8 feet tall surrounding each property. This is an example of. - ✔✔a deed restriction. Which advertising guidelines do most agents need to follow the most closely? - ✔✔The Broker's Office Policy Manual The Broker of record can be responsible for the real estate transactions worked on by _. - ✔✔Salespersons on site, partnerships with real estate licenses, and corporations with real estate licenses Which national group has tried to stop real estate licensees from handling any contracts? - ✔✔American Bar Association What was the maximum FDIC bank account insurance protection limit in early 2008? - ✔✔$ 100 , 000 Which of the following is an agency disclosure statement that a licensee does NOT have to include? - ✔✔The number of years the licensee has held a real estate license. The 'damage and destruction' clause in a lease generally establishes which of the following? - ✔✔That the tenant is responsible for restoration of the tenant's alterations Real estate laws that are passed by government bodies in Arkansas are called. - ✔✔Statutory laws Where can Kentucky Brokers purchase the latest updated real estate forms? - ✔✔MLS and KREC
What is the name of the national survey system that was first established many years ago to classify giant land parcels before naming an independent owner? - ✔✔Public Land Survey System Which survey system is the likeliest to be used to define specific boundaries between two adjacent large land parcels? - ✔✔Metes and bounds
