COLORADO REAL ESTATE VOCABULARY EXAM QUESTIONS AND 100% CORRECT ANSWERS |LATEST 2025/2026|GRADED A+

COLORADO REAL ESTATE EXAM PREP
STATE PORTION SECTION 7, CLOSING AND



An out-of- B



state investor sells a property in Colorado. The closing entity must uphold up to 2 percent of th
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e - ANSWER-
B B selling price as a possible income tax liability
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The Closing Instruction form - ANSWER-
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engages a closing service on behalf of the buyer and seller
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According to statue, "good funds" include a - ANSWER-
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tellers check from a savings and loan
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If a buyer and seller have a dispute over earnest money, the listing broker may - ANSWER-
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hold earnest money in escrow account until the parties provide mutual instructions
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Following a closing, the listing broker should pay commissions due to the company associates
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- ANSWER-
B from the company operating account accruing to employment agreements.
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What is the listing broker's responsibility for an Earnest Money Promissory Note? - ANSWER-
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hold the note, and notify the seller if it is not redeemed in time.
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The Statement of Settlement prepared for the closing must be signed by - ANSWER-
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the brokers associated with the transaction, the buyer, and the seller.
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The six -column settlement worksheet entry for the property purchase price would be -
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B ANSWER- credit to the seller, debit to the buyer
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Wicky

, How is a buyers earnest money deposit treated at closing? - ANSWER-
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The obeyer gets credit for the deposit as part of the purchase price
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A loan being assumed by a buyer has what effect at a closing? - ANSWER-
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Debit to the seller, credit to the buyer
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If the seller agrees to carry back part of the purchase price as a second Deed of Trust, what is t
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he effect at closing? - ANSWER-
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Credit the buyer who can use this promise to pay in place of cash at closing
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If the buyer is assuming an 8.5% loan with a balance of $127,538 at a closing on July 11, what i
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s the interest proration? - ANSWER-
B B B B B $291.42 debit to seller, credit to buyerB B B B B B




Based on the approved Contract to Buy and Sell, the title insurance premium would be entere
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d on a settlement worksheet as - ANSWER-
B B B B B B B debit to seller, credit to broker
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On the settlement worksheet, charges for "Abstracting: Before Sale" would include - ANSWER-
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an abstract certified to date by a qualified abstractor
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How would charges for an attorney to examine the title documents normally appear on the se
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ttlement worksheet? - ANSWER- B B B credit to broker, debit to buyerB B B B B




At closing, who normally is charged for recording charges for the Warranty Deed? - ANSWER-
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Buyer



The six- B



column settlement statement worksheet would show the charges for recording a Deed of the
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Trust as - ANSWER- B B B Debit the buyer, credit the broker
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Wicky