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REAL ESTATE EXPRESS COLORADO CLOSINGS FINAL
VERSION 1&2 NEWEST 2025/2026 NEWEST ACTUAL EXAM
WITH COMPLETE QUESTIONS AND VERIFIED ANSWERS
|ALREADY GRADED A+|
At closing, a loan that is being assumed will show up on which
closing statement? - ANSWER-D)Seller's and buyer's
The assumed loan amount will show up on both Closing
Statements, on the buyer's as a credit and on the seller's as a
debit. This is money the buyer is taking over for the seller and
money the seller still owes and will not receive at closing.
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-D)$2,554.26 debit seller, credit buyer
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
$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.
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Colorado property taxes are paid in arrears.
Who normally is charged for the recording fee? The - ANSWER-
D)party benefiting from the document
Recording fees are paid by the party benefiting from recording.
The buyer will pay to record the deed, and the seller will pay to
release the deed of trust.
When an existing loan is assumed, how is it entered on the
settlement worksheet? - ANSWER-D)Debit seller, credit buyer
Loans being assumed are always a credit buyer, debit seller. The
broker takes the current loan away from the seller (because the
seller will no longer make payments), and the broker must give it
to the buyer to help finance this sale.
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-A)It will not show up.
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The seller's subtotal of debits is $132,456.28 and subtotal of
credits is $142,333.26. This means the seller - ANSWER-A)will
receive $9,876.98 at closing.
Because the seller has more credits than debits, the seller
receives the difference at closing; simply subtract.
The tax reserve will show as a settlement entry for all of the
following loans EXCEPT - ANSWER-C)seller-carry second loans.
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.
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-B)$20 debit buyer, credit
seller
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
REAL ESTATE EXPRESS COLORADO CLOSINGS FINAL
VERSION 1&2 NEWEST 2025/2026 NEWEST ACTUAL EXAM
WITH COMPLETE QUESTIONS AND VERIFIED ANSWERS
|ALREADY GRADED A+|
At closing, a loan that is being assumed will show up on which
closing statement? - ANSWER-D)Seller's and buyer's
The assumed loan amount will show up on both Closing
Statements, on the buyer's as a credit and on the seller's as a
debit. This is money the buyer is taking over for the seller and
money the seller still owes and will not receive at closing.
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-D)$2,554.26 debit seller, credit buyer
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
$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.
, Page |2
Colorado property taxes are paid in arrears.
Who normally is charged for the recording fee? The - ANSWER-
D)party benefiting from the document
Recording fees are paid by the party benefiting from recording.
The buyer will pay to record the deed, and the seller will pay to
release the deed of trust.
When an existing loan is assumed, how is it entered on the
settlement worksheet? - ANSWER-D)Debit seller, credit buyer
Loans being assumed are always a credit buyer, debit seller. The
broker takes the current loan away from the seller (because the
seller will no longer make payments), and the broker must give it
to the buyer to help finance this sale.
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-A)It will not show up.
, Page |3
The seller's subtotal of debits is $132,456.28 and subtotal of
credits is $142,333.26. This means the seller - ANSWER-A)will
receive $9,876.98 at closing.
Because the seller has more credits than debits, the seller
receives the difference at closing; simply subtract.
The tax reserve will show as a settlement entry for all of the
following loans EXCEPT - ANSWER-C)seller-carry second loans.
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.
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-B)$20 debit buyer, credit
seller
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
