Page 1 of 71
Real Estate Express Colorado Closings Exam ALL 250
QUESTIONS AND CORRECT ANSWERS LATEST
UPDATE THIS YEAR
Which of the following activities are not governed by RESPA?
a. Preventing excessive settlement costs resulting from affiliated business arrangements.
b. Preventing kickbacks for referrals between settlement services.
c. Preventing excessive settlement charges by charging for something other than settlement
services.
d. Ensuring that foreigners pay the proper tax on the sale of their US properties.
d. Ensuring that foreigners pay the proper tax on the sale of their US properties.
The "gap" exception excludes what period of time from coverage under the title
commitment?
a. The period from the search of the records until closing.
b. The period from the search of the records until the recording of the deed.
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c. The period from the effective date of the commitment to the date of closing.
d. The period from the effective date of the commitment to the date of recording of the deed.
d. The period from the effective date of the commitment to the date of recording of the deed.
Which of the following is true about a prepayment penalty?
a. They will be included in all non-conforming loans
b. They will be included in all conforming loans
c. They can be a trade off for lower interest rates
d. They are not permitted in any loans
b. They will be included in all conforming loans
Bill Buyer and Sam Seller contract for and close on property on the edge of town. A week
after closing Bill gets a notice that a developer has announced plans to build a mall on the
property behind Bill's new house. Bill files suit against Sam for failing to disclose a material
fact. What are Bill's chances?
a. Bill has a good case; Sam was under a duty to disclose the adjacent property's zoning.
b. Bill has a good case because Sam has warranted good title in his general warranty deed.
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c. Bill does not have a cause of action because Bill had an opportunity to investigate the
zoning during the Due Diligence period and failed to do so.
d. Sam does not have a good case because once he closed, he waived the right to sue.
c. Bill does not have a cause of action because Bill had an opportunity to investigate the
zoning during the Due Diligence period and failed to do so.
Broker Bob places an ad in XYZ title company's newsletter. He pays full price for the ad. Has
Bob violated any Rules?
a. Yes, because Bob bought an ad from XYZ.
b. Yes, because Bob paid full price for the ad.
c. No, because the ad was in a newsletter and not in advertising materials.
d. No, because the arrangement created an affiliated business arrangement.
a. Yes, because Bob bought an ad from XYZ.
Sam and Bill have entered into a contract. It contains a provision that if Bill does not get a
loan commitment within 30 days, the contract automatically terminates. Bill does not timely
obtain the commitment. What is the result?
a. Bill loses his earnest money deposit because he defaulted.
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b. Bill gets his earnest money back, even though he defaulted.
c. Bill gets his earnest money back because of a failure of a contingency provision in the
contract.
d. Bill loses his earnest money because the contract automatically terminated.
c. Bill gets his earnest money back because of a failure of a contingency provision in the
contract.
Bob Broker lists a property and Jane Broker finds a buyer. Jane secures the earnest money
deposit and opens a separate escrow account for it. The contract did not provide for Jane
Broker holding the earnest deposit. She does add some of her own money to the account to
pay the bank's fee for opening the account. Is Jane in violation of any Commission Rule?
a. No, because she opened a separate account.
b. Yes, because she commingled her funds with the escrowed money.
c. Yes, because she accepted the deposit.
d. No, because the Rules permit commingling
c. Yes, because she accepted the deposit.
Which of the following is not a feature of a construction loan?
a. The interest is usually higher than on a conventional loan.
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Real Estate Express Colorado Closings Exam ALL 250
QUESTIONS AND CORRECT ANSWERS LATEST
UPDATE THIS YEAR
Which of the following activities are not governed by RESPA?
a. Preventing excessive settlement costs resulting from affiliated business arrangements.
b. Preventing kickbacks for referrals between settlement services.
c. Preventing excessive settlement charges by charging for something other than settlement
services.
d. Ensuring that foreigners pay the proper tax on the sale of their US properties.
d. Ensuring that foreigners pay the proper tax on the sale of their US properties.
The "gap" exception excludes what period of time from coverage under the title
commitment?
a. The period from the search of the records until closing.
b. The period from the search of the records until the recording of the deed.
1
, Page 2 of 71
c. The period from the effective date of the commitment to the date of closing.
d. The period from the effective date of the commitment to the date of recording of the deed.
d. The period from the effective date of the commitment to the date of recording of the deed.
Which of the following is true about a prepayment penalty?
a. They will be included in all non-conforming loans
b. They will be included in all conforming loans
c. They can be a trade off for lower interest rates
d. They are not permitted in any loans
b. They will be included in all conforming loans
Bill Buyer and Sam Seller contract for and close on property on the edge of town. A week
after closing Bill gets a notice that a developer has announced plans to build a mall on the
property behind Bill's new house. Bill files suit against Sam for failing to disclose a material
fact. What are Bill's chances?
a. Bill has a good case; Sam was under a duty to disclose the adjacent property's zoning.
b. Bill has a good case because Sam has warranted good title in his general warranty deed.
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, Page 3 of 71
c. Bill does not have a cause of action because Bill had an opportunity to investigate the
zoning during the Due Diligence period and failed to do so.
d. Sam does not have a good case because once he closed, he waived the right to sue.
c. Bill does not have a cause of action because Bill had an opportunity to investigate the
zoning during the Due Diligence period and failed to do so.
Broker Bob places an ad in XYZ title company's newsletter. He pays full price for the ad. Has
Bob violated any Rules?
a. Yes, because Bob bought an ad from XYZ.
b. Yes, because Bob paid full price for the ad.
c. No, because the ad was in a newsletter and not in advertising materials.
d. No, because the arrangement created an affiliated business arrangement.
a. Yes, because Bob bought an ad from XYZ.
Sam and Bill have entered into a contract. It contains a provision that if Bill does not get a
loan commitment within 30 days, the contract automatically terminates. Bill does not timely
obtain the commitment. What is the result?
a. Bill loses his earnest money deposit because he defaulted.
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, Page 4 of 71
b. Bill gets his earnest money back, even though he defaulted.
c. Bill gets his earnest money back because of a failure of a contingency provision in the
contract.
d. Bill loses his earnest money because the contract automatically terminated.
c. Bill gets his earnest money back because of a failure of a contingency provision in the
contract.
Bob Broker lists a property and Jane Broker finds a buyer. Jane secures the earnest money
deposit and opens a separate escrow account for it. The contract did not provide for Jane
Broker holding the earnest deposit. She does add some of her own money to the account to
pay the bank's fee for opening the account. Is Jane in violation of any Commission Rule?
a. No, because she opened a separate account.
b. Yes, because she commingled her funds with the escrowed money.
c. Yes, because she accepted the deposit.
d. No, because the Rules permit commingling
c. Yes, because she accepted the deposit.
Which of the following is not a feature of a construction loan?
a. The interest is usually higher than on a conventional loan.
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