Colorado Final Exam #1 questions
well answered graded A+ 2025/2026
A lender has filed a "Notice of Election and Demand".
The sale must take place:
No more than 60 days
No less than 45 days
75 days
No more than 125 days unless agricultural land - correct answer ✔✔No more than 125 days
unless agricultural land
Lead‐based paint disclosure is required:
For property in known high lead areas
For all residential sales
For residential property in which a building permit was issued before January 1, 1978
,For residential property built before January 1, 1978 - correct answer ✔✔For residential
property in which a building permit was issued before January 1, 1978
An "In‐Company Transaction" means:
The Broker is representing the seller and the buyer in the same transaction
The Broker is representing the seller, and the buyer is a customer
Both the Listing Broker and the Selling Broker, both work for the same firm.
The Broker has a listing agreement and the cooperating broker is a transaction broker - correct
answer ✔✔Both the Listing Broker and the Selling Broker, both work for the same firm.
A benefit of seller financing is that the buyer and seller can avoid paying:
Title insurance premiums
Recording fees
State deed tax
Discount points and loan origination fees - correct answer ✔✔Discount points and loan
origination fees
,At closing, the recording charges for the warranty deed would normally be charged to:
Seller
Lender
Broker
Buyer - correct answer ✔✔Buyer
What percentage of mortgage broker ownership interest in a settlement service provider's
business, would trigger the need to provide an "Affiliate Business Arrangement Disclosure" ?
5.00%
10.00%
15.00%
1.00% - correct answer ✔✔1.00%
The closing is April 1, and the HOA monthly assessment of $200.00 has been paid by the seller.
, Who owes whom and how much ?
There is no proration, buyer owes seller $200.00, thus Buyer debit of $200, Seller credit of $200
$6.67 debit the buyer, credit the seller
$6.67 credit the buyer, debit the seller
There is no proration, seller owes buyer $200.00 - correct answer ✔✔There is no proration,
buyer owes seller $200.00, thus Buyer debit of $200, Seller credit of $200
How long must an independent broker keep his transaction files ?
4 years
7 years
Must be sent to the commission for safe keeping
Must be kept 30 after closing - correct answer ✔✔4 years
A "Special Tax or Special Assessment" is shown on the Certificate of Taxes due in the amount of
$834.00 for a curb and gutter project. The tax is payable over 10 years with annual interest of
5%. If the buyer has agreed to assume this property obligation, how will it show on the
settlement worksheet ?
well answered graded A+ 2025/2026
A lender has filed a "Notice of Election and Demand".
The sale must take place:
No more than 60 days
No less than 45 days
75 days
No more than 125 days unless agricultural land - correct answer ✔✔No more than 125 days
unless agricultural land
Lead‐based paint disclosure is required:
For property in known high lead areas
For all residential sales
For residential property in which a building permit was issued before January 1, 1978
,For residential property built before January 1, 1978 - correct answer ✔✔For residential
property in which a building permit was issued before January 1, 1978
An "In‐Company Transaction" means:
The Broker is representing the seller and the buyer in the same transaction
The Broker is representing the seller, and the buyer is a customer
Both the Listing Broker and the Selling Broker, both work for the same firm.
The Broker has a listing agreement and the cooperating broker is a transaction broker - correct
answer ✔✔Both the Listing Broker and the Selling Broker, both work for the same firm.
A benefit of seller financing is that the buyer and seller can avoid paying:
Title insurance premiums
Recording fees
State deed tax
Discount points and loan origination fees - correct answer ✔✔Discount points and loan
origination fees
,At closing, the recording charges for the warranty deed would normally be charged to:
Seller
Lender
Broker
Buyer - correct answer ✔✔Buyer
What percentage of mortgage broker ownership interest in a settlement service provider's
business, would trigger the need to provide an "Affiliate Business Arrangement Disclosure" ?
5.00%
10.00%
15.00%
1.00% - correct answer ✔✔1.00%
The closing is April 1, and the HOA monthly assessment of $200.00 has been paid by the seller.
, Who owes whom and how much ?
There is no proration, buyer owes seller $200.00, thus Buyer debit of $200, Seller credit of $200
$6.67 debit the buyer, credit the seller
$6.67 credit the buyer, debit the seller
There is no proration, seller owes buyer $200.00 - correct answer ✔✔There is no proration,
buyer owes seller $200.00, thus Buyer debit of $200, Seller credit of $200
How long must an independent broker keep his transaction files ?
4 years
7 years
Must be sent to the commission for safe keeping
Must be kept 30 after closing - correct answer ✔✔4 years
A "Special Tax or Special Assessment" is shown on the Certificate of Taxes due in the amount of
$834.00 for a curb and gutter project. The tax is payable over 10 years with annual interest of
5%. If the buyer has agreed to assume this property obligation, how will it show on the
settlement worksheet ?
