Real estate express - Colorado closings final exam.pdf file:///C:/Users/HP/Desktop/TYPA%20NEW/Real%20estate%20exp
Real Estate Express - Colorado Closings Final Exam
1. Which of the following is not permitted in a contract lawsuit?
a. Liquidated damages
b. Actual damages
c. Specific performance
d. Punitive damages
ANS d. Punitive damages
2. A non-conforming loan fails to meet whose underwriting standards?
a. The primary lender
b. The provider of the mortgagee title policy
c. Fannie Mae
d. The PMI insurer
ANS c. Fannie Mae
3. What is the major difference between a title commitment and a title ab-stract?
a. An abstract does not create an obligation to insure title.
b. An abstract is longer.
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c. A title commitment is not reviewed as closely by an attorney.
d. A title searcher does not have to go as far back in time with a title commit-ment.
ANS a. An abstract does not create an obligation to insure title.
4. At closing Bill Buyer brings a certified check, but he made a mistake on theamount, not
realizing he owes $36 for recording the deed. He writes a personalcheck to the closing
agent. The agent calls Bill's bank to verify he has the funds to cover the check. Can the
closing agent accept it?
a. No, because the Good Funds Rule only b. allows disbursement from fundswired in.
b. Yes, because the agent checked with the bank.
c. No, because checking with the bank does not satisfy the Good Funds Rule. d.Yes, the
Good Funds Rule would allow it because of the size of the check.
ANS d.Yes, the Good Funds Rule would allow it because of the size of the check.
5. What is the difference in the proration amount for a $1000 item if closing ison June 6
using the 365 day vs. the 12 mo/30 method of calculation? There are 156 days between
January 1 and June 6, including June 6.
a. $3.21
b. $3.18
c. $3.25
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d. None of the above
ANS d. None of the above
6. Which of the following is not required with regard to transferring propertyowned by
a corporation?
a. The corporation must always file a certificate of incorporation in eachcounty
where it holds real property.
b. The deed must be signed by an officer with the power to convey property.
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c. The corporation must always file the articles of incorporation in the countywhere it
holds property.
d. None of the answers are required.
ANS a. The corporation must always file acertificate of incorporation in each county
where it holds real property.
7. For an item a buyer pays in arrears, which of the following is true?
a. The buyer receives a credit and the broker receives a debit.
b. The buyer receives a credit and the seller receives a debit.
c. The buyer receives a debit and the seller receives a credit.
d. The seller receives a credit and the broker receives a debit.
ANS b. The buyerreceives a credit and the seller receives a debit.
8. What are the advantages of a conventional loan?
a. The risk is less than for other kinds of loans.
b. The interest rates are usually lower than on other loans.
c. The loans are easier to obtain than other loans.
d. The terms and rates are more flexible than other loans.
ANS b. The interest ratesare usually lower than on other loans.
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