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Colorado Real Estate Exam Prep State
Portion- Closing and Settlement
Questions and Answers Latest 2026
An out-of-state investor sells a property in Colorado. The
closing entity must uphold up to 2 percent of the Ans:
selling price as a possible income tax liability
The Closing Instruction form Ans: engages a closing
service on behalf of the buyer and seller
According to statue, "good funds" include a Ans: tellers
check from a savings and loan
If a buyer and seller have a dispute over earnest money,
the listing broker may Ans: hold earnest money in escrow
account until the parties provide mutual instructions
Following a closing, the listing broker should pay
commissions due to the company associates Ans: from
the company operating account accruing to employment
agreements.
What is the listing broker's responsibility for an Earnest
Money Promissory Note? Ans: hold the note, and notify
the seller if it is not redeemed in time.
The Statement of Settlement prepared for the closing
must be signed by Ans: the brokers associated with the
transaction, the buyer, and the seller.
© 2025 All rights reserved
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The six -column settlement worksheet entry for the
property purchase price would be Ans: credit to the
seller, debit to the buyer
How is a buyers earnest money deposit treated at
closing? Ans: The obeyer gets credit for the deposit as
part of the purchase price
A loan being assumed by a buyer has what effect at a
closing? Ans: Debit to the seller, credit to the buyer
If the seller agrees to carry back part of the purchase
price as a second Deed of Trust, what is the effect at
closing? Ans: Credit the buyer who can use this promise
to pay in place of cash at closing
If the buyer is assuming an 8.5% loan with a balance of
$127,538 at a closing on July 11, what is the interest
proration? Ans: $291.42 debit to seller, credit to buyer
Based on the approved Contract to Buy and Sell, the title
insurance premium would be entered on a settlement
worksheet as Ans: debit to seller, credit to broker
On the settlement worksheet, charges for "Abstracting:
Before Sale" would include Ans: an abstract certified to
date by a qualified abstractor
How would charges for an attorney to examine the title
documents normally appear on the settlement
worksheet? Ans: credit to broker, debit to buyer
© 2025 All rights reserved
Colorado Real Estate Exam Prep State
Portion- Closing and Settlement
Questions and Answers Latest 2026
An out-of-state investor sells a property in Colorado. The
closing entity must uphold up to 2 percent of the Ans:
selling price as a possible income tax liability
The Closing Instruction form Ans: engages a closing
service on behalf of the buyer and seller
According to statue, "good funds" include a Ans: tellers
check from a savings and loan
If a buyer and seller have a dispute over earnest money,
the listing broker may Ans: hold earnest money in escrow
account until the parties provide mutual instructions
Following a closing, the listing broker should pay
commissions due to the company associates Ans: from
the company operating account accruing to employment
agreements.
What is the listing broker's responsibility for an Earnest
Money Promissory Note? Ans: hold the note, and notify
the seller if it is not redeemed in time.
The Statement of Settlement prepared for the closing
must be signed by Ans: the brokers associated with the
transaction, the buyer, and the seller.
© 2025 All rights reserved
, 2 | Page
The six -column settlement worksheet entry for the
property purchase price would be Ans: credit to the
seller, debit to the buyer
How is a buyers earnest money deposit treated at
closing? Ans: The obeyer gets credit for the deposit as
part of the purchase price
A loan being assumed by a buyer has what effect at a
closing? Ans: Debit to the seller, credit to the buyer
If the seller agrees to carry back part of the purchase
price as a second Deed of Trust, what is the effect at
closing? Ans: Credit the buyer who can use this promise
to pay in place of cash at closing
If the buyer is assuming an 8.5% loan with a balance of
$127,538 at a closing on July 11, what is the interest
proration? Ans: $291.42 debit to seller, credit to buyer
Based on the approved Contract to Buy and Sell, the title
insurance premium would be entered on a settlement
worksheet as Ans: debit to seller, credit to broker
On the settlement worksheet, charges for "Abstracting:
Before Sale" would include Ans: an abstract certified to
date by a qualified abstractor
How would charges for an attorney to examine the title
documents normally appear on the settlement
worksheet? Ans: credit to broker, debit to buyer
© 2025 All rights reserved
