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REAL ESTATE EXPRESS -
COLORADO CLOSINGS FI NAL
EXAM WITH COMPLETE
SOLUTION
Question :You are the buyer's broker attending closing.
You discover that your buyer was charged $225 for an appraisal for which the seller had agreed to pay. How should you handle this?A) Ignore it because all the paperwork has these numbers on it B) Stop the closing and demand all new settlement statements and good funds figures C) Suggest that, if your buyer agrees, the seller could give the buyer a personal check for this amount to settle this unfortunate oversight D)
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Demand that the listing broker pay this amount since the broker should have caught the error
Correct answer:C)
Suggest that, if your buyer agrees, the seller could give the buyer a personal check for this amount to settle this unfortunate oversight The answer is suggest that, if the buyer agrees, the seller could give the buyer a personal check for this amount to settle this unfortunate oversight. Small corrections in money are allowed at closing. If the deed or other documents were not correct, they would have to be corrected before proceeding. In the case of the overlooked appraisal fee, having the seller give the buyer a check is fine as long as all the parties agree to the solution.
Question :The tax reserve will show as a settlement entry
for all of the following loans EXCEPT A) Veterans Affairs (VA) loans.B) new conventional loans.
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C) seller-carry second loans.D) Federal Housing Administration (FHA) loans.
Correct answer:C)
seller-carry second loans.
Question :The broker's fee is normally shown on the
settlement worksheet as A) debit seller, credit buyer.B) debit seller, credit broker.C) debit seller and buyer equally, credit the broker the full amount.D) debit seller, single entry because the broker will keep it.
Correct answer:B)
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debit seller, credit broker.
Question :At closing, taxes for special assessments will be
A) always prorated to the date of closing.B) charged to the seller if they are paid off at closing.C) charged to the seller if assumed by the buyer.D) charged to the seller.
Correct answer:B)
charged to the seller if they are paid off at closing.
Question :Funds deposited in the broker's escrow account
are represented by
A)