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REAL ESTATE EXPRESS COLORADO CLOSINGS FINAL VERSION
1&2 NEWEST 2025/2026 ACTUAL EXAM WITH COMPLETE
QUESTIONS AND CORRECT DETAILED ANSWERS (100% VERIFIED
ANSWERS) |ALREADY GRADED A+| ||PROFESSOR VERIFIED||
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?
A)
$700 debit seller, credit buyer
B)
$700 debit seller, single entry
C)
$700 debit buyer, credit broker
D)
$700 debit seller, $700 credit broker - ANSWER-B)
The purchase agreement says the seller will buy title insurance at
closing to protect the buyer. Because this is a new loan, both
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entries are single entries. Debit the seller, single entry, as the
lender will pay the charge.
There is a new seller carry loan with a closing August 20 and the
first payment is due October 1. How is the interest adjustment
calculated?
A)
Divide annual interest by 365, then multiply by 12 days
B)
Divide annual interest by 365, then multiply by 19 days
C)
Divide annual interest by 12, then multiply by 12 days
D)
Divide annual interest by 12, then multiply by 19 days - ANSWER-
A)
The October payment covers September, but there is interest due
from August 20 through August 31 (31 - 19 <seller's last day> =
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12). Because this is a new loan and only 12 days are needed,
take annual interest ÷ 365 × 12 days.
How would a seller-carry loan be entered on the six-column
settlement worksheet?
A)
Debit buyer, credit broker
B)
Debit buyer, credit seller
C)
Debit seller, credit broker
D)
Debit seller, credit buyer - ANSWER-D)
In a seller-carry loan, the seller is literally loaning her equity to the
buyer. This is money the buyer does not bring and the seller does
not receive at the closing table. At closing, it will appear as a
seller debit and buyer credit. Remember, all loans are always a
buyer credit.
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Net loan proceeds are a single entry
A)
credit buyer.
B)
debit broker.
C)
debit buyer.
D)
credit broker. - ANSWER-B)
Net loan proceeds are always a debit (deposit) to the broker, who
will need the funds to complete closing.
The broker's fee is normally shown on the settlement worksheet
as
A)
REAL ESTATE EXPRESS COLORADO CLOSINGS FINAL VERSION
1&2 NEWEST 2025/2026 ACTUAL EXAM WITH COMPLETE
QUESTIONS AND CORRECT DETAILED ANSWERS (100% VERIFIED
ANSWERS) |ALREADY GRADED A+| ||PROFESSOR VERIFIED||
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?
A)
$700 debit seller, credit buyer
B)
$700 debit seller, single entry
C)
$700 debit buyer, credit broker
D)
$700 debit seller, $700 credit broker - ANSWER-B)
The purchase agreement says the seller will buy title insurance at
closing to protect the buyer. Because this is a new loan, both
,2|Page
entries are single entries. Debit the seller, single entry, as the
lender will pay the charge.
There is a new seller carry loan with a closing August 20 and the
first payment is due October 1. How is the interest adjustment
calculated?
A)
Divide annual interest by 365, then multiply by 12 days
B)
Divide annual interest by 365, then multiply by 19 days
C)
Divide annual interest by 12, then multiply by 12 days
D)
Divide annual interest by 12, then multiply by 19 days - ANSWER-
A)
The October payment covers September, but there is interest due
from August 20 through August 31 (31 - 19 <seller's last day> =
,3|Page
12). Because this is a new loan and only 12 days are needed,
take annual interest ÷ 365 × 12 days.
How would a seller-carry loan be entered on the six-column
settlement worksheet?
A)
Debit buyer, credit broker
B)
Debit buyer, credit seller
C)
Debit seller, credit broker
D)
Debit seller, credit buyer - ANSWER-D)
In a seller-carry loan, the seller is literally loaning her equity to the
buyer. This is money the buyer does not bring and the seller does
not receive at the closing table. At closing, it will appear as a
seller debit and buyer credit. Remember, all loans are always a
buyer credit.
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Net loan proceeds are a single entry
A)
credit buyer.
B)
debit broker.
C)
debit buyer.
D)
credit broker. - ANSWER-B)
Net loan proceeds are always a debit (deposit) to the broker, who
will need the funds to complete closing.
The broker's fee is normally shown on the settlement worksheet
as
A)
