Real estate express - Colorado closings final exam ME!
1. Which of the following is not permitted in a contract d. Punitive damages
lawsuit?
a. Liquidated damages
b. Actual damages
c. Specific performance
d. Punitive damages
2. A non-conforming loan fails to meet whose underwrit- c. Fannie Mae
ing standards?
a. The primary lender
b. The provider of the mortgagee title policy
c. Fannie Mae
d. The PMI insurer
3. What is the major difference between a title commit- a. An abstract does not
ment and a title abstract? create an obligation to in-
a. An abstract does not create an obligation to insure sure title.
title.
b. An abstract is longer.
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 commitment.
4. At closing Bill Buyer brings a certified check, but he d. Yes, the Good Funds
made a mistake on the amount, not realizing he owes Rule would allow it be-
$36 for recording the deed. He writes a personal check cause of the size of the
to the closing agent. The agent calls Bill's bank to check.
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 funds wired in.
, Real estate express - Colorado closings final exam ME!
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.
5. What is the difference in the proration amount for a d. None of the above
$1000 item if closing is on 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
d. None of the above
6. Which of the following is not required with regard to a. The corporation must
transferring property owned by a corporation? always file a certificate
a. The corporation must always file a certificate of of incorporation in each
incorporation in each county where it holds real prop- county where it holds real
erty. property.
b. The deed must be signed by an officer with the
power to convey property.
c. The corporation must always file the articles of in-
corporation in the county where it holds property.
d. None of the answers are required.
7. For an item a buyer pays in arrears, which of the b. The buyer receives a
following is true? credit and the seller re-
a. The buyer receives a credit and the broker receives ceives a debit.
a debit.
b. The buyer receives a credit and the seller receives a
debit.
, Real estate express - Colorado closings final exam ME!
c. The buyer receives a debit and the seller receives a
credit.
d. The seller receives a credit and the broker receives
a debit.
8. What are the advantages of a conventional loan? b. The interest rates are
a. The risk is less than for other kinds of loans. usually lower than on oth-
b. The interest rates are usually lower than on other er loans.
loans.
c. The loans are easier to obtain than other loans.
d. The terms and rates are more flexible than other
loans.
9. What are the documentary fees in a transaction where b. $10.00
the purchase price is $100,000 and the mortgage
amount is $50,000, assuming no local transfer fees?
a. None, since the fees would be less than $500
b. $10.00
c. $100.00
d. $5.00
10. In the case where there is a title abstract instead of c. It will show as a credit
a commitment, how would the abstract update re- to the buyer but no credit
quired by the lender be shown on the Worksheet? to anyone since it is being
a. It will not be shown if the lender pays the abstract paid out of loan proceeds.
fee out of the loan proceeds.
b. It will show as a credit to the buyer and a debit to
the broker.
c. It will show as a credit to the buyer but no credit to
anyone since it is being paid out of loan proceeds.
d. It will be shown as a credit to the buyer and a debit
to the lender.
, Real estate express - Colorado closings final exam ME!
11. What is the cost of documentary fees on a transaction a. $35.00
whose purchase price is $350,000 with a $200,000
mortgage?
a. $35.00
b. $350.00
c. $55.00
d. $15.00
12. When would a Closing Disclosure be required? d. Whenever the lender is
a. It is always an optional form. subject to RESPA.
b. Whenever there is a loan on the property.
c. Whenever the seller requires it.
d. Whenever the lender is subject to RESPA.
13. Sam and Bill get together over a cup of coffee and d. Yes, provided Bill buys
draw up an agreement on a napkin that says, "Sam the coffee and pancakes.
agrees to sell Bill the two-story green brick house on
Colfax Avenue for a price of $200. Bill's buying the
coffee and pancakes." Sam and Bill both sign and date
the napkin. Does this agreement satisfy the Statute of
Frauds?
a. No, because the State of Frauds does not apply to
real estate.
b. No, because the price of the property is clearly not
enough.
c. No, because it isn't written on the approved Com-
mission mandatory form.
d. Yes, provided Bill buys the coffee and pancakes.
14. Which of the following is not an option for the escrow a. Release the funds to the
agent in the event of a dispute about releasing the party signing the release
earnest money? instructions.
1. Which of the following is not permitted in a contract d. Punitive damages
lawsuit?
a. Liquidated damages
b. Actual damages
c. Specific performance
d. Punitive damages
2. A non-conforming loan fails to meet whose underwrit- c. Fannie Mae
ing standards?
a. The primary lender
b. The provider of the mortgagee title policy
c. Fannie Mae
d. The PMI insurer
3. What is the major difference between a title commit- a. An abstract does not
ment and a title abstract? create an obligation to in-
a. An abstract does not create an obligation to insure sure title.
title.
b. An abstract is longer.
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 commitment.
4. At closing Bill Buyer brings a certified check, but he d. Yes, the Good Funds
made a mistake on the amount, not realizing he owes Rule would allow it be-
$36 for recording the deed. He writes a personal check cause of the size of the
to the closing agent. The agent calls Bill's bank to check.
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 funds wired in.
, Real estate express - Colorado closings final exam ME!
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.
5. What is the difference in the proration amount for a d. None of the above
$1000 item if closing is on 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
d. None of the above
6. Which of the following is not required with regard to a. The corporation must
transferring property owned by a corporation? always file a certificate
a. The corporation must always file a certificate of of incorporation in each
incorporation in each county where it holds real prop- county where it holds real
erty. property.
b. The deed must be signed by an officer with the
power to convey property.
c. The corporation must always file the articles of in-
corporation in the county where it holds property.
d. None of the answers are required.
7. For an item a buyer pays in arrears, which of the b. The buyer receives a
following is true? credit and the seller re-
a. The buyer receives a credit and the broker receives ceives a debit.
a debit.
b. The buyer receives a credit and the seller receives a
debit.
, Real estate express - Colorado closings final exam ME!
c. The buyer receives a debit and the seller receives a
credit.
d. The seller receives a credit and the broker receives
a debit.
8. What are the advantages of a conventional loan? b. The interest rates are
a. The risk is less than for other kinds of loans. usually lower than on oth-
b. The interest rates are usually lower than on other er loans.
loans.
c. The loans are easier to obtain than other loans.
d. The terms and rates are more flexible than other
loans.
9. What are the documentary fees in a transaction where b. $10.00
the purchase price is $100,000 and the mortgage
amount is $50,000, assuming no local transfer fees?
a. None, since the fees would be less than $500
b. $10.00
c. $100.00
d. $5.00
10. In the case where there is a title abstract instead of c. It will show as a credit
a commitment, how would the abstract update re- to the buyer but no credit
quired by the lender be shown on the Worksheet? to anyone since it is being
a. It will not be shown if the lender pays the abstract paid out of loan proceeds.
fee out of the loan proceeds.
b. It will show as a credit to the buyer and a debit to
the broker.
c. It will show as a credit to the buyer but no credit to
anyone since it is being paid out of loan proceeds.
d. It will be shown as a credit to the buyer and a debit
to the lender.
, Real estate express - Colorado closings final exam ME!
11. What is the cost of documentary fees on a transaction a. $35.00
whose purchase price is $350,000 with a $200,000
mortgage?
a. $35.00
b. $350.00
c. $55.00
d. $15.00
12. When would a Closing Disclosure be required? d. Whenever the lender is
a. It is always an optional form. subject to RESPA.
b. Whenever there is a loan on the property.
c. Whenever the seller requires it.
d. Whenever the lender is subject to RESPA.
13. Sam and Bill get together over a cup of coffee and d. Yes, provided Bill buys
draw up an agreement on a napkin that says, "Sam the coffee and pancakes.
agrees to sell Bill the two-story green brick house on
Colfax Avenue for a price of $200. Bill's buying the
coffee and pancakes." Sam and Bill both sign and date
the napkin. Does this agreement satisfy the Statute of
Frauds?
a. No, because the State of Frauds does not apply to
real estate.
b. No, because the price of the property is clearly not
enough.
c. No, because it isn't written on the approved Com-
mission mandatory form.
d. Yes, provided Bill buys the coffee and pancakes.
14. Which of the following is not an option for the escrow a. Release the funds to the
agent in the event of a dispute about releasing the party signing the release
earnest money? instructions.
