COLORADO REAL ESTATE CLOSINGS AND SETTLEMENT FINAL REVIEW NEWEST ACTUAL
EXAM WITH COMPLETE QUESTIONS AND CORRECT VERIFIED ANSWERS
(DETAILED ANSWERS) ALREADY GRADED A+ 100%
Whose closing statement would normally include the Colorado documentary fee? The
Buyer - <<ANSWER>>The document fee is collected by the clerk and recorder, so the
buyer/grantee typically pays this fee as part of recording the deed.
How would the amount of a new seller - carry deed of trust be entered on the settlement
worksheet? Debit seller, credit buyer. - <<ANSWER>>A deed of trust is created as
security for a lender. In a seller - carry situation, the seller is literally loaning equity to
the buyer. At closing, the money is taken from the seller *debit and loaned to the buyer
*credit.
How would a seller - carry loan be entered on the six - column settlement
worksheet?Debit seller, credit buyer - <<ANSWER>>In a seller - carry loan, the seller is
literally loaning the their equity to the buyer. This is money the buyer does not bring and
the seller does not receive at the closing table. at closing, it will appear as a seller debit
and a buyer credit. remember, all loans are always a buyer credit.
The broker's fee is normally shown on the settlement worksheet as? debit seller, credit
broker. - <<ANSWER>>The broker's fee is usually paid by the seller, thus debit seller,
credit broker. This would be tru even in a new loan closing because the broker's fee in
not part of the new loan.
An investor buyer is acquiring a four-unit property. each unit has a $400 security deposit
held by the seller. how are these deposits handled on the settlement worksheet? $1,600
debit buyer, credit seller. - <<ANSWER>>Security deposits are considered the tenant's
money. The seller, who is currently holding the security deposit, must transfer it
completely to the buyer *new landlord and, per the contract, notify the tenant of the
transfer and the buyer's name and address.
If a colorado property sells for $263,900 what document fee will be paid when the
warranty deed is recorded? $26.39 - <<ANSWER>>The way to express the
documentary fee is $0.01 per $100. the easiest way to calculate it is just to move the
decimal four digits to the left. For this question, $26.39 or $263,900 × 0.0001 = $26.39
, If the new loan amount is $70,330 and the total lender payouts are $35,326 the net loan
proceeds are? $35,004 - <<ANSWER>>The gross loan is $70,330. The lender is paying
fees and disbursements related to closing and clearing the title. Those fees and
disbursements, also know as lender payout, total $35,326, which is payouts in the net
loan proceeds *debit broker, single entry.
Who is responsible for the overall closing? The listing brokerage and listing broker. -
<<ANSWER>>The responsibility of the overall closing belongs to the listing brokerage
and listing broker. The designated buyer's broker will be responsible only for the buyer's
statement of settlement.
A small money error is found at closing. the best option is to? Suggest that because it is
a small amount and a personal check will satisfy both parties, a check outside the
closing be used. - <<ANSWER>>While state law requires good funds be brought to
closing, is a small mistake is discovered, it is permitted to correct this with a cash or
personal check.
A seller who will reside outside of Colorado after the sale may be subject to a 2 percent
withholding for state income tax if? The sale price is more than $100,000. -
<<ANSWER>>Properties below this amount are excluded from withholding. Also
remember that the closing entitiy is required to collect this money *up to 2Percent os the
sales price, or the seller's entire net proceeds, whichever is less.
A $300 charge for an appraisal is shown on the new loan statement. The contract states
that the buyer and seller have agreed to share this cost. The settlement worksheet entry
is? $150 debit seller, $150 debit buyer, $300 credit broker. - <<ANSWER>>Because the
appraisal bill is being split between the seller and the buyer, each would obviously awe
half. Because it's on a new loan, these are single - entry debits to each party *with no
matching credit.
A survey is required as a condition in a purchase contract. Who will be charged for this
cost? Negotiable - check the contract. - <<ANSWER>>The contract makes the parties
decide who will pay; thus, it's negotiable.
Notary fees are charged as? debit the person who signs. - <<ANSWER>>A notary is a
witness of signatures. Notaries charge the person who signs the document after
checking that person's identification to verify it is the correct person; the person is
signing of his own free will.
The entry for purchase price is? Credit seller, debit buyer. - <<ANSWER>>The
purchase price is paid by the buyer and given to the seller *debit the buyer, credit the
seller
The tax reserve will show as a settlement entry for all of the following loans Except?
Seller- carry second loans. - <<ANSWER>>A seller carry loan will not collect for tax
