NEWEST 2025/2026 COLORADO REAL ESTATE
CLOSING AND SETTLEMENT FINAL EXAM
ACTUAL EXAM WITH FREQUENTLY TESTED
Page | 1
QUESTIONS WITH CORRECT ACCURATE
ANSWERS|EXPERT VERIFIED FOR GUARANTEED
PASS/TOP RATED A+.
COLORADO REAL ESTATE
Pass the Colorado Real Estate Closing and Settlement Exam 2025/2026
with confidence. This exam material features questions in areas like:
escrow, settlement statements, title transfers, and state-specific laws. It is
ideal for students preparing to become licensed real estate professionals in
Colorado.
A flat-rate water bill that is paid in advance in the amount of $37.50 for
the month has not been paid. For a closing on June 16, which is a correct
entry for the settlement statements?
A)
Credit seller $18.75
B)
Debit seller $18.75, credit buyer $18.75
C)
Debit buyer $18.75, credit seller $18.75
D)
Debit seller and buyer $18.75 ...... ANSWER ...... D)
, The water is a lien at closing, but the seller only owes for the seller
portion of the month, and the buyer will be required to pay the buyer
Page | 2 portion. The combined amount is the total amount due, which will be a
credit to the broker, who will write a check to clear the lien.
There is a $13 cost for the recording of the release for the current deed of
trust in the new loan statement. The settlement sheet entry is
A)
$13 debit seller only.
B)
$13 debit buyer, credit broker.
C)
$13 debit seller, credit broker.
D)
$13 debit buyer only. ...... ANSWER ...... A)
Since this is a new loan, this is a single-entry debit to the seller who wants
this payoff recorded. Remember, the broker does not write this check.
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?
, A)
$834 debit seller, $834 credit broker.
B)
Page | 3
It will not show up.
C)
$834 plus prorated interest debit seller and credit buyer.
D)
$834 debit seller, $834 credit buyer. ...... ANSWER ...... B)
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.
The seller's subtotal of debits is $132,456.28 and subtotal of credits is
$142,333.26. This means the seller
A)
is bringing $9,876.98 to closing.
B)
will receive $9,876.98 at closing.
C)
needs $142,333.26 in cash to close.
D)
needs $132,456.28 in cash to close. ...... ANSWER ...... B)
, Because the seller has more credits than debits, the seller receives the
difference at closing; simply subtract.
Page | 4
Who traditionally pays loan costs like discount points on a new loan?
A)
Buyer
B)
Seller
C)
Lender
D)
Broker ...... ANSWER ...... A)
Loan costs and other loan fees are traditionally paid by the borrower but
can be negotiated to be a seller concession. The Contract to Buy and Sell
determines who will pay and how much.
At closing, a loan that is being assumed will show up on which closing
statement?
A)
Seller's only
CLOSING AND SETTLEMENT FINAL EXAM
ACTUAL EXAM WITH FREQUENTLY TESTED
Page | 1
QUESTIONS WITH CORRECT ACCURATE
ANSWERS|EXPERT VERIFIED FOR GUARANTEED
PASS/TOP RATED A+.
COLORADO REAL ESTATE
Pass the Colorado Real Estate Closing and Settlement Exam 2025/2026
with confidence. This exam material features questions in areas like:
escrow, settlement statements, title transfers, and state-specific laws. It is
ideal for students preparing to become licensed real estate professionals in
Colorado.
A flat-rate water bill that is paid in advance in the amount of $37.50 for
the month has not been paid. For a closing on June 16, which is a correct
entry for the settlement statements?
A)
Credit seller $18.75
B)
Debit seller $18.75, credit buyer $18.75
C)
Debit buyer $18.75, credit seller $18.75
D)
Debit seller and buyer $18.75 ...... ANSWER ...... D)
, The water is a lien at closing, but the seller only owes for the seller
portion of the month, and the buyer will be required to pay the buyer
Page | 2 portion. The combined amount is the total amount due, which will be a
credit to the broker, who will write a check to clear the lien.
There is a $13 cost for the recording of the release for the current deed of
trust in the new loan statement. The settlement sheet entry is
A)
$13 debit seller only.
B)
$13 debit buyer, credit broker.
C)
$13 debit seller, credit broker.
D)
$13 debit buyer only. ...... ANSWER ...... A)
Since this is a new loan, this is a single-entry debit to the seller who wants
this payoff recorded. Remember, the broker does not write this check.
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?
, A)
$834 debit seller, $834 credit broker.
B)
Page | 3
It will not show up.
C)
$834 plus prorated interest debit seller and credit buyer.
D)
$834 debit seller, $834 credit buyer. ...... ANSWER ...... B)
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.
The seller's subtotal of debits is $132,456.28 and subtotal of credits is
$142,333.26. This means the seller
A)
is bringing $9,876.98 to closing.
B)
will receive $9,876.98 at closing.
C)
needs $142,333.26 in cash to close.
D)
needs $132,456.28 in cash to close. ...... ANSWER ...... B)
, Because the seller has more credits than debits, the seller receives the
difference at closing; simply subtract.
Page | 4
Who traditionally pays loan costs like discount points on a new loan?
A)
Buyer
B)
Seller
C)
Lender
D)
Broker ...... ANSWER ...... A)
Loan costs and other loan fees are traditionally paid by the borrower but
can be negotiated to be a seller concession. The Contract to Buy and Sell
determines who will pay and how much.
At closing, a loan that is being assumed will show up on which closing
statement?
A)
Seller's only
