REAL ESTATE EXPRESS COLORADO CLOSINGS
ACTUAL REAL EXAM (2025/2026) ALL COMPLETE
QUESTIONS AND DETAILED CORRECT ANSWERS
Page | 1
|EXPERT VERIFIED FOR GUARANTEED PASS|
TOP RATED A+.
REAL ESTATE EXPRESS COLORADO CLOSINGS
Pass the Real Estate Express Colorado Closings exam 2025/2026 with
confidence. This exam resource features questions in areas like: contracts,
escrow, title, and Colorado-specific closing procedures. This study guide is
perfect for aspiring real estate agents and brokers preparing for licensing or
continuing education.
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 ...... ANSWER ......$150 debit seller,
$150 debit buyer.
RATIONALE: Because the appraisal bill is being split between the seller
and the buyer, each would obviously owe half. Because it's on a new
loan, these are single-entry debits to each party (with no matching credit).
A special tax or special assessment is shown on the certificate of taxes due
in the amount of $834 for a curb and gutter project, which the buyer has
agreed to assume. How will it show on the settlement worksheet? ......
ANSWER ......It will not show up.
, RATIONALE: Remember that when the buyer agrees to pay the special
taxes or special assessments, these are not collected at closing. The buyer
is agreeing to make the payments as per the assumption agreement.
Page | 2
If the new loan statement indicates the lender is withholding $700 for an
owner's title policy, how will the settlement worksheet reflect these items?
...... ANSWER ......$700 debit seller, single entry
RATIONALE: The purchase agreement says the seller will buy title
insurance at closing to protect the buyer. Because this is a new loan, both
entries are single entries. Debit the seller, single entry, as the lender will
pay the charge.
A water bill is due in advance, and it has been paid for the month in the
amount of $60. For a closing on April 21, how will the worksheet reflect
this bill? ...... ANSWER ......$20 debit buyer, credit seller
RATIONALE: Water paid in advance is buyer owes seller (BOS).
Because the closing is at the end of the month, buyer will owe little side
$20. $60 ÷ 30 × (30 - 20) 10 = $20
Water paid in advance for April = $60 (30 days)
If the real estate taxes for last year were $3,685, what is the prorated tax
entry for this year's taxes for a September 11 closing? ...... ANSWER
......$2,554.26 debit seller, credit buyer
, RATIONALE: Taxes in Colorado are paid in arrears, so the seller
always owes the buyer (SOB). The closing in September means the seller
will have the large portion of the year, so it will be debit the seller
Page | 3
$2,554.26 and credit the buyer who will have to pay the bill. $3,685 ÷ 365
× 253 = $2,554.26
Last year's general taxes = $3,685.
Colorado property taxes are paid in arrears.
If the new loan amount is $70,330 and the total lender payouts are
$35,326, the net loan proceeds are ...... ANSWER ......$35,004.
RATIONALE: 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 known as lender payouts, total $35,326, which is
subtracted from the $70,330. The remainder of the money after the lender
payouts is the net loan proceeds (debit broker, single entry).
All of the following would be considered good funds EXCEPT a ......
ANSWER ......check on the broker's escrow account.
RATIONALE: Good funds are a cashier's check, teller's check, and wire
transfer. Personal, business, and trust checks are not good funds.
In a new loan closing, how is the loan entered on the settlement
worksheet? ...... ANSWER ......Credit the buyer, single entry.
, RATIONALE: Loans are always credit buyer, and because this is a new
loan, it is a single entry.
Page | 4
Whose Closing Statement would normally include the notary fee for the
warranty deed? ...... ANSWER ......Seller
RATIONALE: Notary fees are paid by the person whose signature is
being notarized. The grantor/seller signs the warranty deed so the seller
will be charged for this cost.
Debit entries in the broker column represent ...... ANSWER
......deposits to the trust account.
RATIONALE: Debit = Deposit; Checks = Credits.
The entry for purchase price is ...... ANSWER ......credit seller, debit
buyer.
RATIONALE: The purchase price is paid by the buyer and given to the
seller (debit buyer, credit seller).
At closing, taxes for special assessments will be ...... ANSWER
......charged to the seller if they are paid off at closing.
ACTUAL REAL EXAM (2025/2026) ALL COMPLETE
QUESTIONS AND DETAILED CORRECT ANSWERS
Page | 1
|EXPERT VERIFIED FOR GUARANTEED PASS|
TOP RATED A+.
REAL ESTATE EXPRESS COLORADO CLOSINGS
Pass the Real Estate Express Colorado Closings exam 2025/2026 with
confidence. This exam resource features questions in areas like: contracts,
escrow, title, and Colorado-specific closing procedures. This study guide is
perfect for aspiring real estate agents and brokers preparing for licensing or
continuing education.
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 ...... ANSWER ......$150 debit seller,
$150 debit buyer.
RATIONALE: Because the appraisal bill is being split between the seller
and the buyer, each would obviously owe half. Because it's on a new
loan, these are single-entry debits to each party (with no matching credit).
A special tax or special assessment is shown on the certificate of taxes due
in the amount of $834 for a curb and gutter project, which the buyer has
agreed to assume. How will it show on the settlement worksheet? ......
ANSWER ......It will not show up.
, RATIONALE: Remember that when the buyer agrees to pay the special
taxes or special assessments, these are not collected at closing. The buyer
is agreeing to make the payments as per the assumption agreement.
Page | 2
If the new loan statement indicates the lender is withholding $700 for an
owner's title policy, how will the settlement worksheet reflect these items?
...... ANSWER ......$700 debit seller, single entry
RATIONALE: The purchase agreement says the seller will buy title
insurance at closing to protect the buyer. Because this is a new loan, both
entries are single entries. Debit the seller, single entry, as the lender will
pay the charge.
A water bill is due in advance, and it has been paid for the month in the
amount of $60. For a closing on April 21, how will the worksheet reflect
this bill? ...... ANSWER ......$20 debit buyer, credit seller
RATIONALE: Water paid in advance is buyer owes seller (BOS).
Because the closing is at the end of the month, buyer will owe little side
$20. $60 ÷ 30 × (30 - 20) 10 = $20
Water paid in advance for April = $60 (30 days)
If the real estate taxes for last year were $3,685, what is the prorated tax
entry for this year's taxes for a September 11 closing? ...... ANSWER
......$2,554.26 debit seller, credit buyer
, RATIONALE: Taxes in Colorado are paid in arrears, so the seller
always owes the buyer (SOB). The closing in September means the seller
will have the large portion of the year, so it will be debit the seller
Page | 3
$2,554.26 and credit the buyer who will have to pay the bill. $3,685 ÷ 365
× 253 = $2,554.26
Last year's general taxes = $3,685.
Colorado property taxes are paid in arrears.
If the new loan amount is $70,330 and the total lender payouts are
$35,326, the net loan proceeds are ...... ANSWER ......$35,004.
RATIONALE: 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 known as lender payouts, total $35,326, which is
subtracted from the $70,330. The remainder of the money after the lender
payouts is the net loan proceeds (debit broker, single entry).
All of the following would be considered good funds EXCEPT a ......
ANSWER ......check on the broker's escrow account.
RATIONALE: Good funds are a cashier's check, teller's check, and wire
transfer. Personal, business, and trust checks are not good funds.
In a new loan closing, how is the loan entered on the settlement
worksheet? ...... ANSWER ......Credit the buyer, single entry.
, RATIONALE: Loans are always credit buyer, and because this is a new
loan, it is a single entry.
Page | 4
Whose Closing Statement would normally include the notary fee for the
warranty deed? ...... ANSWER ......Seller
RATIONALE: Notary fees are paid by the person whose signature is
being notarized. The grantor/seller signs the warranty deed so the seller
will be charged for this cost.
Debit entries in the broker column represent ...... ANSWER
......deposits to the trust account.
RATIONALE: Debit = Deposit; Checks = Credits.
The entry for purchase price is ...... ANSWER ......credit seller, debit
buyer.
RATIONALE: The purchase price is paid by the buyer and given to the
seller (debit buyer, credit seller).
At closing, taxes for special assessments will be ...... ANSWER
......charged to the seller if they are paid off at closing.
