Colibri Real Estate EXAM COMPLETE QUESTIONS AND CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED A+

Colibri Real
Estate EXAM
COMPLETE
QUESTIONS AND
CORRECT DETAILED
ANSWERS (VERIFIED
ANSWERS)
|ALREADY GRADED
A+
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. - ANSStatutory Nonemployee
In which field do the majority of new licensees
begin their work? - ANS-Residential Sales
Which is NOT an advantage to a career in real
estate sales? - ANS-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? - ANS-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? - ANS-1099-MISC
These professionals purchase large tracts of
land at a low cost per acre, then subdivide and
improve it with streets, sewers, and utilities so
it can be resold at a higher cost per front foot
(for lots) or per square foot (for buildings). -
ANS-Real Estate Development
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. - ANS-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? - ANS-$3,000
A real estate licensee is more likely to be an
employee of his broker. - ANS-False
If a broker supervises the real estate activities
of an associated licensee, that licensee
CANNOT be considered an independent
contractor. - ANS-False
A real estate licensee who is an independent
contractor is paid based on successful real
estate transactions, not on hours worked. -
ANS-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. - ANSBroker
A business that serves as an intermediary
between buyers and sellers and/or lessees and
lessors of real estate. - ANS-Brokerage
Insurance that protects real estate licensees
from liability due to mistakes or negligence. It
does not cover claims related to fraud or
discrimination. - ANS-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. - ANSIndependent Contractor
A person licensed under state law to practice
real estate. - ANS-Licensee