Colorado Real Estate Questions and Answers with Verified Solutions |
Latest 2026 Update
Q: A loan being assumed by the buyer has what effect at closing?
Answer:
Q: 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 entry?
Answer:
A) $291.42, debit the buyer
Q: Owners association dues of $300 are paid in advance on a quarterly basis. For a
closing on July 28, what would be the prorated amount on the closing
statements?
Answer:
,Colorado Real Estate Questions and Answers with Verified Solutions |
Latest 2026 Update
Q: If the taxes for the preceding year are unpaid at the time of closing, the amount
will ALWAYS be
Answer:
A) A credit on the buyer's closing statement.
C) Paid outside closing.
Q: If the real estate taxes for last year were $3,685, what would the prorated tax
entry be for this year's taxes for a September 11 closing?
Answer:
buyer
,Colorado Real Estate Questions and Answers with Verified Solutions |
Latest 2026 Update
Q: In a new loan closing, the settlement worksheet will show an entry for a tax
reserve that
Answer:
indicates the new lender is
A) Withholding this amount from the loan proceeds to start the impound account for
the next
payment of taxes.
C) Deducting this amount as a loan transfer fee.
D) Contributing this amount toward the buyer's taxes for this year. A) Withholding
this
amount from the loan proceeds to start the impound account for the next payment of
taxes.
Q: A special tax or assessment of $834 is shown on the Certificate of Taxes Due for
a curb and gutter project. The tax is payable over 10 years with an annual
interest of 5%. If the buyer agreed to assume this property obligation, how will it
show on the settlement worksheet?
Answer:
B) It will not show up because it has no financial effect on the closing up because it
has no financial effect on the closing
, Colorado Real Estate Questions and Answers with Verified Solutions |
Latest 2026 Update
Q: All of the following would be considered to be a closing entity responsible for
collecting the
Answer:
Colorado nonresident tax EXCEPT
A) The Colorado Department of Revenue.
B) A broker doing the closing.
Q: C) The title insurance company.
Answer:
D) An attorney closing the transaction. A) The Colorado Department of Revenue.
Q: A flat-rate water bill of $37.50 that is paid in advance for the month has not been
paid. For a closing on June 16, which is the correct entry on the closing
statements?
Answer:
Latest 2026 Update
Q: A loan being assumed by the buyer has what effect at closing?
Answer:
Q: 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 entry?
Answer:
A) $291.42, debit the buyer
Q: Owners association dues of $300 are paid in advance on a quarterly basis. For a
closing on July 28, what would be the prorated amount on the closing
statements?
Answer:
,Colorado Real Estate Questions and Answers with Verified Solutions |
Latest 2026 Update
Q: If the taxes for the preceding year are unpaid at the time of closing, the amount
will ALWAYS be
Answer:
A) A credit on the buyer's closing statement.
C) Paid outside closing.
Q: If the real estate taxes for last year were $3,685, what would the prorated tax
entry be for this year's taxes for a September 11 closing?
Answer:
buyer
,Colorado Real Estate Questions and Answers with Verified Solutions |
Latest 2026 Update
Q: In a new loan closing, the settlement worksheet will show an entry for a tax
reserve that
Answer:
indicates the new lender is
A) Withholding this amount from the loan proceeds to start the impound account for
the next
payment of taxes.
C) Deducting this amount as a loan transfer fee.
D) Contributing this amount toward the buyer's taxes for this year. A) Withholding
this
amount from the loan proceeds to start the impound account for the next payment of
taxes.
Q: A special tax or assessment of $834 is shown on the Certificate of Taxes Due for
a curb and gutter project. The tax is payable over 10 years with an annual
interest of 5%. If the buyer agreed to assume this property obligation, how will it
show on the settlement worksheet?
Answer:
B) It will not show up because it has no financial effect on the closing up because it
has no financial effect on the closing
, Colorado Real Estate Questions and Answers with Verified Solutions |
Latest 2026 Update
Q: All of the following would be considered to be a closing entity responsible for
collecting the
Answer:
Colorado nonresident tax EXCEPT
A) The Colorado Department of Revenue.
B) A broker doing the closing.
Q: C) The title insurance company.
Answer:
D) An attorney closing the transaction. A) The Colorado Department of Revenue.
Q: A flat-rate water bill of $37.50 that is paid in advance for the month has not been
paid. For a closing on June 16, which is the correct entry on the closing
statements?
Answer:
