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REAL ESTATE EXPRESS - COLORADO
CLOSINGS FINAL EXAM BRAND NEW
OFFICIAL QUESTIONS WITH ANSWERS.
What is the purpose of the "Owner's Affidavit"?
a. It is used by the title company to remove certain standard
exceptions.
b. It is used by the closing agent to establish the owner's
legal name and address.
c. It is used by the lender to verify the owner of the property.
d. It is used by the listing agent to verify the owner of the
property.
a. It is used by the title company to remove certain standard
exceptions.
Which of the following is not true about an FHA loan?
a. It will probably have a higher loan to value ratio than a
conventional loan.
b. The borrower will have to pay mortgage insurance.
c. The down payment the borrower must make will be higher
than a conventional loan.
d. The lender must be approved by the FHA.
c. The down payment the borrower must make will be higher
than a conventional loan.
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Which of the following statements is not true about
mediation?
a. It is not optional.
b. The parties have 30 days to reach a settlement through
mediation.
c. The mediation procedure is binding.
d. The parties split the cost of mediation.
c. The mediation procedure is binding.
Broker Bob receives a sales call from XYZ Title Company,
who Bob has never used before. The Title Company wants
Bob to buy an ad in the Company's trade newsletter. Bob
checks to be sure he is paying the going rate for the ad. If
Bob places the ad will he be violating a Commission Rule?
a. Yes, because he is paying the same rate as other
advertisers.
b. No, because Bob does not have an existing relationship
with XYZ.
c. Yes, because Bob bought the ad.
d. No because the ad was placed in a newsletter and the ad
did not represent an affiliated business arrangement.
c. Yes, because Bob bought the ad.
In Colorado, calculate the transfer tax on a transaction with a
purchase price of $156,280, a mortgage of $100,000 and
assume there is also a local transfer tax of .015%.
a. $230.44
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b. $23.44
c. $23.42
d. $230.42
b. $23.44
What does it mean when a contract is executed in
"counterparts"?
a. Buyer signs first and then the seller may sign the original
later.
b. Either party may execute a faxed copy of the contract
signed by the first party, and the faxed copy serves as an
original.
c. The contract and the addendums can be executed at
separate times by both parties.
d. Each party may sign an original and the two originals will
be considered as one contract.
d. Each party may sign an original and the two originals will
be considered as one contract.
Which of the following statements is not true with respect to
a broker closing a transaction?
a. The broker closing the transaction must verify that funds
are available prior to disbursing.
b. The broker must retain original closing statements in his
file.
c. Each party and the broker must sign the party's respective
settlement statement.
d. A broker can accept only wired funds.
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d. A broker can accept only wired funds.
What is the advantage of the growing equity mortgage?
a. It will have lower payments over the life of the loan
b. It will allow the buyer to accumulate equity in the home
faster
c. It will usually allow a borrower to pay off the mortgage
more quickly that a conventional loan
d. B and C
b. It will allow the buyer to accumulate equity in the home
faster
Which of the following is not a true statement?
a. For an expense a seller paid in advance, the seller receives
a credit.
b. For an expense a buyer pays in advance, the seller
receives a debit.
c. For an expense a buyer pays outside of closing, a buyer
receives a credit.
d. For income a seller receives in advance, the seller receives
a debit.
c. For an expense a buyer pays outside of closing, a buyer
receives a credit.
What is a negatively amortizing loan?
a. A loan in which the total payments over the life of the loan
do not pay off the principal?
b. A loan in which the rates adjust up or down over the life of
the loan.
REAL ESTATE EXPRESS - COLORADO
CLOSINGS FINAL EXAM BRAND NEW
OFFICIAL QUESTIONS WITH ANSWERS.
What is the purpose of the "Owner's Affidavit"?
a. It is used by the title company to remove certain standard
exceptions.
b. It is used by the closing agent to establish the owner's
legal name and address.
c. It is used by the lender to verify the owner of the property.
d. It is used by the listing agent to verify the owner of the
property.
a. It is used by the title company to remove certain standard
exceptions.
Which of the following is not true about an FHA loan?
a. It will probably have a higher loan to value ratio than a
conventional loan.
b. The borrower will have to pay mortgage insurance.
c. The down payment the borrower must make will be higher
than a conventional loan.
d. The lender must be approved by the FHA.
c. The down payment the borrower must make will be higher
than a conventional loan.
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Which of the following statements is not true about
mediation?
a. It is not optional.
b. The parties have 30 days to reach a settlement through
mediation.
c. The mediation procedure is binding.
d. The parties split the cost of mediation.
c. The mediation procedure is binding.
Broker Bob receives a sales call from XYZ Title Company,
who Bob has never used before. The Title Company wants
Bob to buy an ad in the Company's trade newsletter. Bob
checks to be sure he is paying the going rate for the ad. If
Bob places the ad will he be violating a Commission Rule?
a. Yes, because he is paying the same rate as other
advertisers.
b. No, because Bob does not have an existing relationship
with XYZ.
c. Yes, because Bob bought the ad.
d. No because the ad was placed in a newsletter and the ad
did not represent an affiliated business arrangement.
c. Yes, because Bob bought the ad.
In Colorado, calculate the transfer tax on a transaction with a
purchase price of $156,280, a mortgage of $100,000 and
assume there is also a local transfer tax of .015%.
a. $230.44
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b. $23.44
c. $23.42
d. $230.42
b. $23.44
What does it mean when a contract is executed in
"counterparts"?
a. Buyer signs first and then the seller may sign the original
later.
b. Either party may execute a faxed copy of the contract
signed by the first party, and the faxed copy serves as an
original.
c. The contract and the addendums can be executed at
separate times by both parties.
d. Each party may sign an original and the two originals will
be considered as one contract.
d. Each party may sign an original and the two originals will
be considered as one contract.
Which of the following statements is not true with respect to
a broker closing a transaction?
a. The broker closing the transaction must verify that funds
are available prior to disbursing.
b. The broker must retain original closing statements in his
file.
c. Each party and the broker must sign the party's respective
settlement statement.
d. A broker can accept only wired funds.
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d. A broker can accept only wired funds.
What is the advantage of the growing equity mortgage?
a. It will have lower payments over the life of the loan
b. It will allow the buyer to accumulate equity in the home
faster
c. It will usually allow a borrower to pay off the mortgage
more quickly that a conventional loan
d. B and C
b. It will allow the buyer to accumulate equity in the home
faster
Which of the following is not a true statement?
a. For an expense a seller paid in advance, the seller receives
a credit.
b. For an expense a buyer pays in advance, the seller
receives a debit.
c. For an expense a buyer pays outside of closing, a buyer
receives a credit.
d. For income a seller receives in advance, the seller receives
a debit.
c. For an expense a buyer pays outside of closing, a buyer
receives a credit.
What is a negatively amortizing loan?
a. A loan in which the total payments over the life of the loan
do not pay off the principal?
b. A loan in which the rates adjust up or down over the life of
the loan.
