Colorado Real Estate Closing Test Bank –
Complete Practice Questions with Verified
Answers & Explanations – Updated
2025/2026 Exam Prep
Description:
Prepare for the Colorado Real Estate Closing exam with
this comprehensive test bank, featuring 100% verified practice
questions and detailed explanations. Covers escrow procedures,
settlement statements, state-specific laws, title transfers, and contract
compliance. Fully updated for the 2025/2026 licensing cycle, ideal for
real estate brokers, closing agents, and professionals seeking Colorado
real estate certification.
,COLORADO REAL ESTATE CLOSINGS AND
SETTLEMENT FINAL QUESTIONS WITH
COMPLETE SOLUTION
The document fee is collected by the clerk and recorder, so the buyer/grantee typically
pays this fee as part of recording the deed.
Whose closing statement would normally include the Colorado documentary fee? The
Buyer
Deposit = debit broker ; checks =credit broker.
Fund deposited in the broker's escrow account are represented by? A broker debit.
The Buyer can agree to assume the amount owed, in which case, the amount will not
show at closing. If the assessment is paid at closing, it will be paid by the Seller - Debit
Seller the full amount.
The rule for special assessments is? Charge to the Selller is paid off at closing
Taxes in Colorado are paid in arrears, so the Seller always owes the buyer *SOB. The
closing in September means the Seller will have the large portion of the year, so it will
be debit the Seller $2,554.26 and credit the buyer who will have to pay the bill. $3,685 ÷
365 × 253 (Number of days of 9 months= $2,554.26
Last year's general taxes = $3,685.
Colorado property taxes are paid in arrears.
If the real estate taxes for last year were $3,685 What is the prorated tax for this year's
taxes for September 11 closing? $2,554.26 Debit Seller, Credit buyer.
The lender in a new loan collects, so when the bills are taxes and insurance in the
lender reserve account, so when the bills are due, the lender will pay them.
In a new loan closing, The settlement worksheet will show an entry for tax reserve that
indicates the new lender is? Collecting this amount to start the reserve for the buyer's
next tax payment.
Special assessment taxes have a special rule: If it is paid at closing, debit seller, unless
the buyer agrees to pay. If the buyer assumes the payment, this means the buyer has
,taken over the payment agreement. the charge / assessment amount will not show up
at closing, so it is not mentioned.
At closing, taxes for a special assessments will be? charged to the seller if they are paid
off at closing.
Because the seller's debit Bills are more than the seller's credit, the seller needs to
bring the difference in good funds, to the closing.
The seller's subtotal of debts is $150,550 and subtotal of credit is $132,330. This means
the seller will? Bring $18,220 to closing.
Good funds are a cashier's check, teller's check, and a wire transfer. Personal,
business, and trust checks are not good funds.
this is not considered good funs? A check on the broker's escrow account.
Since this is a new loan, this is a single - entry debit to the seller, who wants this payoff
recorded. remember, the broker does not write this check.
There is a $13 cost for the recording of the release for the current deed of trust in the
new loan statement. The settlement sheet entry is? $13 debit seller only.
A deed of trust is created as security for a lender. In a seller - carry situation, the seller
is literally loaning equity to the buyer. At closing, the money is taken from the
seller debit and loaned to the buyer credit.
How would the amount of a new seller - carry deed of trust be entered on the settlement
worksheet? Debit seller, credit buyer.
In a seller - carry loan, the seller is literally loaning the their equity to the buyer. This is
money the buyer does not bring and the seller does not receive at the closing table. at
closing, it will appear as a seller debit and a buyer credit. remember, all loans are
always a buyer credit.
How would a seller - carry loan be entered on the six - column settlement
worksheet?Debit seller, credit buyer
The broker's fee is usually paid by the seller, thus debit seller, credit broker. This would
be tru even in a new loan closing because the broker's fee in not part of the new loan.
The broker's fee is normally shown on the settlement worksheet as? debit seller, credit
broker.
Security deposits are considered the tenant's money. The seller, who is currently
holding the security deposit, must transfer it completely to the buyer *new landlord and,
per the contract, notify the tenant of the transfer and the buyer's name and address.
, An investor buyer is acquiring a four-unit property. each unit has a $400 security deposit
held by the seller. how are these deposits handled on the settlement worksheet? $1,600
debit buyer, credit seller.
The way to express the documentary fee is $0.01 per $100. the easiest way to calculate
it is just to move the decimal four digits to the left. For this question, $26.39 or $263,900
× 0.0001 = $26.39
If a colorado property sells for $263,900 what document fee will be paid when the
warranty deed is recorded? $26.39
The gross loan is $70,330. The lender is paying fees and disbursements related to
closing and clearing the title. Those fees and disbursements, also know as lender
payout, total $35,326, which is payouts in the net loan proceeds *debit broker, single
entry.
If the new loan amount is $70,330 and the total lender payouts are $35,326 the net loan
proceeds are? $35,004
The responsibility of the overall closing belongs to the listing brokerage and listing
broker. The designated buyer's broker will be responsible only for the buyer's statement
of settlement.
Who is responsible for the overall closing? The listing brokerage and listing broker.
While state law requires good funds be brought to closing, is a small mistake is
discovered, it is permitted to correct this with a cash or personal check.
A small money error is found at closing. the best option is to? Suggest that because it is
a small amount and a personal check will satisfy both parties, a check outside the
closing be used.
Properties below this amount are excluded from withholding. Also remember that the
closing entitiy is required to collect this money *up to 2Percent os the sales price, or the
seller's entire net proceeds, whichever is less.
A seller who will reside outside of Colorado after the sale may be subject to a 2 percent
withholding for state income tax if? The sale price is more than $100,000.
Because the appraisal bill is being split between the seller and the buyer, each would
obviously awe half. Because it's on a new loan, these are single - entry debits to each
party *with no matching credit.
A $300 charge for an appraisal is shown on the new loan statement. The contract states
that the buyer and seller have agreed to share this cost. The settlement worksheet entry
is? $150 debit seller, $150 debit buyer, $300 credit broker.
The contract makes the parties decide who will pay; thus, it's negotiable.
Complete Practice Questions with Verified
Answers & Explanations – Updated
2025/2026 Exam Prep
Description:
Prepare for the Colorado Real Estate Closing exam with
this comprehensive test bank, featuring 100% verified practice
questions and detailed explanations. Covers escrow procedures,
settlement statements, state-specific laws, title transfers, and contract
compliance. Fully updated for the 2025/2026 licensing cycle, ideal for
real estate brokers, closing agents, and professionals seeking Colorado
real estate certification.
,COLORADO REAL ESTATE CLOSINGS AND
SETTLEMENT FINAL QUESTIONS WITH
COMPLETE SOLUTION
The document fee is collected by the clerk and recorder, so the buyer/grantee typically
pays this fee as part of recording the deed.
Whose closing statement would normally include the Colorado documentary fee? The
Buyer
Deposit = debit broker ; checks =credit broker.
Fund deposited in the broker's escrow account are represented by? A broker debit.
The Buyer can agree to assume the amount owed, in which case, the amount will not
show at closing. If the assessment is paid at closing, it will be paid by the Seller - Debit
Seller the full amount.
The rule for special assessments is? Charge to the Selller is paid off at closing
Taxes in Colorado are paid in arrears, so the Seller always owes the buyer *SOB. The
closing in September means the Seller will have the large portion of the year, so it will
be debit the Seller $2,554.26 and credit the buyer who will have to pay the bill. $3,685 ÷
365 × 253 (Number of days of 9 months= $2,554.26
Last year's general taxes = $3,685.
Colorado property taxes are paid in arrears.
If the real estate taxes for last year were $3,685 What is the prorated tax for this year's
taxes for September 11 closing? $2,554.26 Debit Seller, Credit buyer.
The lender in a new loan collects, so when the bills are taxes and insurance in the
lender reserve account, so when the bills are due, the lender will pay them.
In a new loan closing, The settlement worksheet will show an entry for tax reserve that
indicates the new lender is? Collecting this amount to start the reserve for the buyer's
next tax payment.
Special assessment taxes have a special rule: If it is paid at closing, debit seller, unless
the buyer agrees to pay. If the buyer assumes the payment, this means the buyer has
,taken over the payment agreement. the charge / assessment amount will not show up
at closing, so it is not mentioned.
At closing, taxes for a special assessments will be? charged to the seller if they are paid
off at closing.
Because the seller's debit Bills are more than the seller's credit, the seller needs to
bring the difference in good funds, to the closing.
The seller's subtotal of debts is $150,550 and subtotal of credit is $132,330. This means
the seller will? Bring $18,220 to closing.
Good funds are a cashier's check, teller's check, and a wire transfer. Personal,
business, and trust checks are not good funds.
this is not considered good funs? A check on the broker's escrow account.
Since this is a new loan, this is a single - entry debit to the seller, who wants this payoff
recorded. remember, the broker does not write this check.
There is a $13 cost for the recording of the release for the current deed of trust in the
new loan statement. The settlement sheet entry is? $13 debit seller only.
A deed of trust is created as security for a lender. In a seller - carry situation, the seller
is literally loaning equity to the buyer. At closing, the money is taken from the
seller debit and loaned to the buyer credit.
How would the amount of a new seller - carry deed of trust be entered on the settlement
worksheet? Debit seller, credit buyer.
In a seller - carry loan, the seller is literally loaning the their equity to the buyer. This is
money the buyer does not bring and the seller does not receive at the closing table. at
closing, it will appear as a seller debit and a buyer credit. remember, all loans are
always a buyer credit.
How would a seller - carry loan be entered on the six - column settlement
worksheet?Debit seller, credit buyer
The broker's fee is usually paid by the seller, thus debit seller, credit broker. This would
be tru even in a new loan closing because the broker's fee in not part of the new loan.
The broker's fee is normally shown on the settlement worksheet as? debit seller, credit
broker.
Security deposits are considered the tenant's money. The seller, who is currently
holding the security deposit, must transfer it completely to the buyer *new landlord and,
per the contract, notify the tenant of the transfer and the buyer's name and address.
, An investor buyer is acquiring a four-unit property. each unit has a $400 security deposit
held by the seller. how are these deposits handled on the settlement worksheet? $1,600
debit buyer, credit seller.
The way to express the documentary fee is $0.01 per $100. the easiest way to calculate
it is just to move the decimal four digits to the left. For this question, $26.39 or $263,900
× 0.0001 = $26.39
If a colorado property sells for $263,900 what document fee will be paid when the
warranty deed is recorded? $26.39
The gross loan is $70,330. The lender is paying fees and disbursements related to
closing and clearing the title. Those fees and disbursements, also know as lender
payout, total $35,326, which is payouts in the net loan proceeds *debit broker, single
entry.
If the new loan amount is $70,330 and the total lender payouts are $35,326 the net loan
proceeds are? $35,004
The responsibility of the overall closing belongs to the listing brokerage and listing
broker. The designated buyer's broker will be responsible only for the buyer's statement
of settlement.
Who is responsible for the overall closing? The listing brokerage and listing broker.
While state law requires good funds be brought to closing, is a small mistake is
discovered, it is permitted to correct this with a cash or personal check.
A small money error is found at closing. the best option is to? Suggest that because it is
a small amount and a personal check will satisfy both parties, a check outside the
closing be used.
Properties below this amount are excluded from withholding. Also remember that the
closing entitiy is required to collect this money *up to 2Percent os the sales price, or the
seller's entire net proceeds, whichever is less.
A seller who will reside outside of Colorado after the sale may be subject to a 2 percent
withholding for state income tax if? The sale price is more than $100,000.
Because the appraisal bill is being split between the seller and the buyer, each would
obviously awe half. Because it's on a new loan, these are single - entry debits to each
party *with no matching credit.
A $300 charge for an appraisal is shown on the new loan statement. The contract states
that the buyer and seller have agreed to share this cost. The settlement worksheet entry
is? $150 debit seller, $150 debit buyer, $300 credit broker.
The contract makes the parties decide who will pay; thus, it's negotiable.
