Colorado Closings Exam Questions with
correct Answers 2025-2026 A+ Graded.
Rule 6.19 - ANS-at the time of closing, the Broker who has established a Brokerage
Relationship with one or multiple Consumers in a transaction will be responsible for the proper
closing of the transaction. The Broker must ensure such Consumer receives an accurate,
complete and detailed closing statement that is signed by the Broker. If Broker is licensed with a
Brokerage Firm, Broker must deliver closing statements to the Brokerage Firm along with any
other closing documents, immediately following closing. Nothing in this Rule relieves an
Employing Broker of the responsibility for fulfilling supervisory responsibilities
What is the FIRPTA tax rate? - ANS-15% of the sales price
Keep in mind that Colorado has a required tax withholding at Closing for out of state sellers.
Both individuals and corporations are subject to income tax withholding on the sale of Colorado
real estate that is in excess of ___________________ - ANS-$100,000.
Both buyers and sellers receive a _____________________ at closing , a document that is
prepared by a broker, escrow, or lender, giving a complete breakdown of costs involved in a real
estate sale. - ANS-Settlement statement
The __________________________________________ is a federal disclosure act that
requires a lender to give borrowers a good-faith estimate of the settlement costs and an
information booklet. - ANS-Real Estate Settlement Procedures Act (RESPA)
___________________ is a federal law designed to subject nonresident aliens and foreign
corporations to U.S. Income tax upon their gain from the disposition (sale) of real property in the
U.S. - ANS-FIRPTA
The __________ is a standard government real estate form that was once used by the
settlement agent to itemize all charges imposed upon a borrower and seller for a real estate
transaction and is still used for reverse mortgages. - ANS-HUD1
A ______________________ is money paid to someone who is not a party to the contract, and
thus may be a violation of license law and/or RESPA - ANS-Kick back
P.O.C. - ANS-Paid outside of closing. If an item is paid directly to the provider but must be
accounted for on the closing worksheet, it will be listed as P.O.C.
, Title Commitment - ANS-An offer to issue a title insurance policy. It describes the various
conditions, exclusions, and exceptions that will apply on that particular policy.
Title Insurance - ANS-An insurance policy that indemnifies the owner against defects in the title.
The Contract to Buy and Sell Real Estate says that the __________ shall furnish the title
commitment; therefore, the _________ will pay the charge for the owner's title insurance. -
ANS-seller, seller
Mortgagee's Title Policy - ANS-When the buyer obtains a new loan, the lender or mortgagee
will also want this same title insurance coverage in order to be protected from loss. The cost of a
duplicate title insurance policy is nominal since the research has already been done.
The __________ typically pays the cost of the mortgagee's title policy. - ANS-buyer
Title Insurance Endorsements: - ANS-Endorsements attached to the title policy that provide
additional protection regarding specific circumstances, such as special assessment liens or
environmental protection. The lender almost always requests them when a new loan is issued
Title Insurance Endorsements would be a ____________ charge on settlement. - ANS-buyer
The _____________, as part of a scrivener fee, would pay the charge for the actual preparation
of the Warranty deed. - ANS-broker
The _____________, at closing, pays for notarizing their signature on the warranty deed. -
ANS-seller
The ________________ will want to be sure the warranty deed is recorded as legal notice so
the _________ will be charged on settlement. - ANS-buyer, buyer
The lender or mortgagee will require Deed of Trust or Trust Deed document to be recorded as a
lien against the property, so the ______________ will be charged the fee to have the deed of
trust recorded. - ANS-buyer
Release of Lien: The principal balance of the seller's loan is paid in full at closing. The
_____________ will pay the fee to have the courthouse release the lien that had been created
against the property. - ANS-seller
A transfer fee charged by the state of Colorado at a rate of one penny per hundred dollars of
consideration, paid by the person recording an instrument of conveyance to the county clerk
and recorder. If the purchase priced stated in the warranty deed were $119,900.00, the
documentary fee paid by the _____________ would be $11.99 (119,900 times 0.0001). -
ANS-buyer
correct Answers 2025-2026 A+ Graded.
Rule 6.19 - ANS-at the time of closing, the Broker who has established a Brokerage
Relationship with one or multiple Consumers in a transaction will be responsible for the proper
closing of the transaction. The Broker must ensure such Consumer receives an accurate,
complete and detailed closing statement that is signed by the Broker. If Broker is licensed with a
Brokerage Firm, Broker must deliver closing statements to the Brokerage Firm along with any
other closing documents, immediately following closing. Nothing in this Rule relieves an
Employing Broker of the responsibility for fulfilling supervisory responsibilities
What is the FIRPTA tax rate? - ANS-15% of the sales price
Keep in mind that Colorado has a required tax withholding at Closing for out of state sellers.
Both individuals and corporations are subject to income tax withholding on the sale of Colorado
real estate that is in excess of ___________________ - ANS-$100,000.
Both buyers and sellers receive a _____________________ at closing , a document that is
prepared by a broker, escrow, or lender, giving a complete breakdown of costs involved in a real
estate sale. - ANS-Settlement statement
The __________________________________________ is a federal disclosure act that
requires a lender to give borrowers a good-faith estimate of the settlement costs and an
information booklet. - ANS-Real Estate Settlement Procedures Act (RESPA)
___________________ is a federal law designed to subject nonresident aliens and foreign
corporations to U.S. Income tax upon their gain from the disposition (sale) of real property in the
U.S. - ANS-FIRPTA
The __________ is a standard government real estate form that was once used by the
settlement agent to itemize all charges imposed upon a borrower and seller for a real estate
transaction and is still used for reverse mortgages. - ANS-HUD1
A ______________________ is money paid to someone who is not a party to the contract, and
thus may be a violation of license law and/or RESPA - ANS-Kick back
P.O.C. - ANS-Paid outside of closing. If an item is paid directly to the provider but must be
accounted for on the closing worksheet, it will be listed as P.O.C.
, Title Commitment - ANS-An offer to issue a title insurance policy. It describes the various
conditions, exclusions, and exceptions that will apply on that particular policy.
Title Insurance - ANS-An insurance policy that indemnifies the owner against defects in the title.
The Contract to Buy and Sell Real Estate says that the __________ shall furnish the title
commitment; therefore, the _________ will pay the charge for the owner's title insurance. -
ANS-seller, seller
Mortgagee's Title Policy - ANS-When the buyer obtains a new loan, the lender or mortgagee
will also want this same title insurance coverage in order to be protected from loss. The cost of a
duplicate title insurance policy is nominal since the research has already been done.
The __________ typically pays the cost of the mortgagee's title policy. - ANS-buyer
Title Insurance Endorsements: - ANS-Endorsements attached to the title policy that provide
additional protection regarding specific circumstances, such as special assessment liens or
environmental protection. The lender almost always requests them when a new loan is issued
Title Insurance Endorsements would be a ____________ charge on settlement. - ANS-buyer
The _____________, as part of a scrivener fee, would pay the charge for the actual preparation
of the Warranty deed. - ANS-broker
The _____________, at closing, pays for notarizing their signature on the warranty deed. -
ANS-seller
The ________________ will want to be sure the warranty deed is recorded as legal notice so
the _________ will be charged on settlement. - ANS-buyer, buyer
The lender or mortgagee will require Deed of Trust or Trust Deed document to be recorded as a
lien against the property, so the ______________ will be charged the fee to have the deed of
trust recorded. - ANS-buyer
Release of Lien: The principal balance of the seller's loan is paid in full at closing. The
_____________ will pay the fee to have the courthouse release the lien that had been created
against the property. - ANS-seller
A transfer fee charged by the state of Colorado at a rate of one penny per hundred dollars of
consideration, paid by the person recording an instrument of conveyance to the county clerk
and recorder. If the purchase priced stated in the warranty deed were $119,900.00, the
documentary fee paid by the _____________ would be $11.99 (119,900 times 0.0001). -
ANS-buyer
