ALABAMA COLIBRI REAL ESTATE EXAM QUESTIONS WITH ALL CORRECT AND VERIFIED ANSWERS

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ALABAMA COLIBRI REAL ESTATE

EXAM QUESTIONS WITH ALL

CORRECT AND VERIFIED ANSWERS

Question 1: Steven just successfully finished his required real estate

prelicensing course. Which statement is TRUE?

• Once he joins the NAR, he can call himself a REALTOR®.
• Once he passes the state exam, he can call himself a REALTOR®.
• Once he has his real estate license, he can call himself a REALTOR®.
• Once he affiliates with a broker, he can call himself a REALTOR®.

Correct Answer: Once he joins the NAR, he can call himself a REALTOR®.

Question 2: In order to be considered an independent contractor, a licensee's

compensation must be

• based on sales produced, not hours worked.
• based on a negotiated annual salary.
• based on an hourly wage only.
• a combination of hourly wages and commission.

Correct Answer: based on sales produced, not hours worked.

Question 3: 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?

• Rick cannot be held liable for any associated licensee's conduct.

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• Since Louie has 20 years of experience, Rick is not required to supervise

him, and so is not liable.

• Rick can be held liable for Louie's misconduct.
• If Louie is an independent contract, Rick cannot be held liable for his

conduct.

Correct Answer: Rick can be held liable for Louie's misconduct.

Question 4: What can be considered is the most important factor in determining

supply in the real estate market?

• interest rates
• population growth
• government programs
• economic base of an area

Correct Answer: economic base of an area

Question 5: At the end of the year, what tax form will an independent contractor receive to document their income?

A. 1099-MISC

B. W-2

C. 1086-IND-CON

D. 1040

Correct Answer: 1099-MISC

Question 6: BigTime Manufacturers are getting ready to build a new factory in

Smithton that should attract hundreds of new workers to the small town. What would you expect the immediate effect on home prices in the area to be?

• It's not possible to predict.
• Home prices should not be affected.

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• Home prices should rise initially.
• Home prices should fall initially.

Correct Answer: Home prices should rise initially.

Question 7: For a real estate licensee, which is NOT a characteristic that

indicates they are an independent contractor?

• The licensee can set their own hours.
• The licensee must be paid for hours spent in the brokerage office.
• The broker may supervise the licensee's actions.
• The broker and the licensee must have a signed agreement.

Correct Answer: The licensee must be paid for hours spent in the brokerage

office.

Question 8: What would more MOST LIKELY to contribute to a seller's

market?

• low labor costs
• migration out of an area
• high unemployment
• high construction costs

Correct Answer: high construction costs

Question 9: In which field do the majority of new licensees begin their work?

• residential leasing
• residential sales
• property management
• commercial leasing

Correct Answer: residential sales

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Question 10: What acronym can you use to remember the broad forces that can

impact the real estate market?

A. P-A-T-S

B. P-E-G-S

C. G-A-P-S

D. B-I-G-S

Correct Answer: P-E-G-S

Question 11: What are the tasks for which a property manager is typically

responsible? Select all correct responses.

• managing the maintenance and repair of the building
• maintaining tenant relationships
• leasing units
• collecting rents

Correct Answer: ALL

Question 12: The Alabama Real Estate Commission royalties of how many

members?

• Six
• Seven
• Eight
• Nine

Correct Answer: Nine

Question 13: Which is NOT an advantage to a career in real estate sales?

• the opportunity to own your own brokerage