Colorado Real Estate Closings and Settlement Midterm
and Final Exam v3.0 questions and answers with
solutions 2025/2026
You are the buyer's broker attending closing. You discover that your
buyer was charged $225 for an appraisal for which the seller had agreed
to pay. How should you handle this?
A)
Ignore it because all the paperwork has these numbers on it
B)
Stop the closing and demand all new settlement statements and good
funds figures
C)
Suggest that, if your buyer agrees, the seller could give the buyer a
personal check for this amount to settle this unfortunate oversight
D)
Demand that the listing broker pay this amount since the broker should
have caught the error - ANSWER The answer is suggest that, if the buyer
agrees, the seller could give the buyer a personal check for this amount
to settle this unfortunate oversight. Small corrections in money are
allowed at closing. If the deed or other documents were not correct,
they would have to be corrected before proceeding. In the case of the
overlooked appraisal fee, having the seller give the buyer a check is fine
as long as all the parties agree to the solution.
,The tax reserve will show as a settlement entry for all of the following
loans EXCEPT
A)
Veterans Affairs (VA) loans.
B)
new conventional loans.
C)
seller-carry second loans.
D)
Federal Housing Administration (FHA) loans. - ANSWER A seller-carry
second loan will not collect for tax reserves, as this is being collected in
the first loan. All conventional, FHA, and VA loans will call for lender
reserves to be collected.
The broker's fee is normally shown on the settlement worksheet as
A)
debit seller, credit buyer.
B)
debit seller, credit broker.
C)
debit seller and buyer equally, credit the broker the full amount.
D)
debit seller, single entry because the broker will keep it. - ANSWER The
answer is debit seller, credit broker. The broker's fee is usually paid by
, the seller, thus debit seller, credit broker. This would be true even in a
new loan closing because the broker's fee is not part of the new loan.
At closing, taxes for special assessments will be
A)
always prorated to the date of closing.
B)
charged to the seller if they are paid off at closing.
C)
charged to the seller if assumed by the buyer.
D)
charged to the seller. - ANSWER The answer is charged to the seller if
they are paid off at closing. Special assessment taxes have a special rule:
if it is paid at closing, debit seller, unless the buyer agrees to pay. If
buyer assumes the payment, this means the buyer has taken over the
payment agreement. The charge/assessment amount will not show up at
closing, so it is not mentioned.
Funds deposited in the broker's escrow account are represented by
A)
a broker credit.
B)
a lender debit.
and Final Exam v3.0 questions and answers with
solutions 2025/2026
You are the buyer's broker attending closing. You discover that your
buyer was charged $225 for an appraisal for which the seller had agreed
to pay. How should you handle this?
A)
Ignore it because all the paperwork has these numbers on it
B)
Stop the closing and demand all new settlement statements and good
funds figures
C)
Suggest that, if your buyer agrees, the seller could give the buyer a
personal check for this amount to settle this unfortunate oversight
D)
Demand that the listing broker pay this amount since the broker should
have caught the error - ANSWER The answer is suggest that, if the buyer
agrees, the seller could give the buyer a personal check for this amount
to settle this unfortunate oversight. Small corrections in money are
allowed at closing. If the deed or other documents were not correct,
they would have to be corrected before proceeding. In the case of the
overlooked appraisal fee, having the seller give the buyer a check is fine
as long as all the parties agree to the solution.
,The tax reserve will show as a settlement entry for all of the following
loans EXCEPT
A)
Veterans Affairs (VA) loans.
B)
new conventional loans.
C)
seller-carry second loans.
D)
Federal Housing Administration (FHA) loans. - ANSWER A seller-carry
second loan will not collect for tax reserves, as this is being collected in
the first loan. All conventional, FHA, and VA loans will call for lender
reserves to be collected.
The broker's fee is normally shown on the settlement worksheet as
A)
debit seller, credit buyer.
B)
debit seller, credit broker.
C)
debit seller and buyer equally, credit the broker the full amount.
D)
debit seller, single entry because the broker will keep it. - ANSWER The
answer is debit seller, credit broker. The broker's fee is usually paid by
, the seller, thus debit seller, credit broker. This would be true even in a
new loan closing because the broker's fee is not part of the new loan.
At closing, taxes for special assessments will be
A)
always prorated to the date of closing.
B)
charged to the seller if they are paid off at closing.
C)
charged to the seller if assumed by the buyer.
D)
charged to the seller. - ANSWER The answer is charged to the seller if
they are paid off at closing. Special assessment taxes have a special rule:
if it is paid at closing, debit seller, unless the buyer agrees to pay. If
buyer assumes the payment, this means the buyer has taken over the
payment agreement. The charge/assessment amount will not show up at
closing, so it is not mentioned.
Funds deposited in the broker's escrow account are represented by
A)
a broker credit.
B)
a lender debit.
