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CO RE Exam > Unit 7 > Flashcards

Unit 7 Flashcards

1
Q

Who is the three-party agreement between?

A

Buyer, seller, and closing company

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2
Q

Who selects the closing company?

A

Listing broker and the seller or buyer

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3
Q

What is the purpose of a closing company and authority do they have?

A

Acts as a scrivener. Gives authority to prepare standard and pre-approved legal docs

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4
Q

*What is the closing companies job?

A

Close the transaction according to the terms of the contract.

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5
Q

What is the purpose of the Contract to Buy and Sell at closing?

A
  1. Set terms of transfer

2. Determines who pays for what

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6
Q

Who charges the closing fees and are they negotiable?

A

A closing company and yes, they are negotiable

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7
Q

If there is a blank in a contract, is it negotiable?

A

Yes

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8
Q

What is the purpose of a deed?

A

To convey title to real property

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9
Q

A CO documentary fee of ____ per ____ of the purchase price is paid upon the recording of any conveyance deed.

A

$0.01 per $100

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10
Q

What is the purpose of a Bill of Sale?

A

Convey title to personal property

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11
Q

What does the Certificate of Taxes Due report?

A

Reports the Ad Valorem taxes (aka assessed taxes due)

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12
Q

Who verifies the amount of taxes owed?

A

The county

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13
Q

*What is TD-1000?

A

Real Property Transfer Declaration

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14
Q

When is TD-1000 (Real Property Transfer Declaration) fill out?

A

At closing

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15
Q

Who requires Real Property Transfer Declaration and where is it sent?

A

Required by the state and sent to the county addessor

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16
Q

*What does the Real Property Transfer Declaration do?

A
  • Declares market price (not market value) and circumstances of sale
  • Used to help ensure fair and uniform property tax assessments
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17
Q

Does the Real Property Transfer Declaration transfer personal property?

A

No. A Bill of Sales does

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18
Q

Who does the selling broker represent?

A

The buyer

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19
Q

Who is responsible for the overall supervision of the closing?

A

The listing broker

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20
Q

When is the Closing Statement form approved and provided to the buyer/seller? Who gives it to the buyer/seller?

A

At closing; by the respective broker to each party

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21
Q

True or False? The statement identifies if it is a buyer or seller statement.

A

True

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22
Q

What does the buyers statement contain?

A

Only the buyer’s debits and credits

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23
Q

What does the sellers statement contain?

A

Only the seller’s debits and credits

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24
Q

Who is responsible for the accuracy of the statement for the party they represent?

A

The respective broker for each side

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25
Q

*Who is responsible for the accuracy of closing docs when a broker asks another broker to attend for them?

A

All brokers involved + employing broker

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26
Q

*What are considered good funds?

A
  • Cashier’s check from a commercial bank
  • Teller’s checks from a savings and loan
  • Fund conveyed using the federal funds wire transfer system
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27
Q

What are NOT considered good funds?

A
  • Business checks
  • personal checks
  • money market checks
  • certificate of deposit
  • title insurance company checks
28
Q

What is the 2% nonresident seller income tax withholding?

A

If someone is selling a house in CO, and it is not their primary residence, they are charged 2% of the sales price

29
Q

Who is responsible to withhold the 2% fee?

A

The closing entity

30
Q

*True or False. A closing entity can be a broker, attorney, or the title/closing company?

A

True (all of the following except question)

31
Q

The 2% rule only applies to a property sold for what price or higher?

A

$100,000+

32
Q

If the closing entity doesn’t take the 2%, what else may they do?

A

Take the seller’s net proceeds of sale

33
Q

What must the broker do immediately after closing?

A

Must return all closing docs to the employing broker

34
Q

The sales price is a _____ to a buyer and a _____ to a seller on the settlement worksheet.

A

Debit buyer, Credit seller

35
Q

Whose closing statement does the sales price appear on?

A

Both the buyer and seller

36
Q

The earnest money is a ______ buyer and a _____ broker.

A

Credit buyer, debit broker

37
Q

Whose closing statement does the earnest money appear on?

A

buyers only

38
Q

What is an assumed loan amount?

A

principal remaining on loan assumed by buyer

39
Q

An assumed loan amount is a _____ to a buyer and a _____ to the seller

A

?credit buyer; debit seller

40
Q

Whose closing statement does the assumed loan amount appear on?

A

Both the buyer and seller

41
Q

What is Accrued interest on assumed loan?

A

Prorated seller owes buyer for month of closing

42
Q

An accrued interest on assumed loan is a _____ to a seller and a _____ to the buyer

A

Debit seller; credit buyer

43
Q

Whose closing statement does the accrued interest on assumed loan appear on?

A

Both the buyer and seller

44
Q

What are the details to remember for an owner’s (buyer’s) title insurance

A

Seller pays owner’s policy

45
Q

An owner’s (buyer’s) title insurance is a _____ to a seller and a _____ to the broker

A

Debit seller, credit broker

46
Q

Whose closing statement does the owner’s (buyer’s) title insurance appear on?

A

Seller’s only

47
Q

What are the details to remember for a mortgagee’s (lender’s) title insurance?

A

Buyer pays lender’s policy

48
Q

A mortgagee’s (lender’s) title insurance is a _____ to a buyer and a _____ to the broker

A

Debit buyer; Credit broker

49
Q

Whose closing statement does a mortgagee’s (lender’s) title insurance appear on?

A

Buyer’s only

50
Q

What are the details to remember to a notary fee for warranty deed?

A

Who signs documents pays notary; seller signs deed

51
Q

A notary fee for warranty deed is a _____ to a seller and a _____ to the broker

A

Debit seller; Credit broker

52
Q

What are the details to remember for a recording of warranty deed?

A

Recording deed benefits buyer/grantee

53
Q

A recording of warranty deed is a _____ to a buyer and a _____ to the broker

A

Debit buyer, Credit broker

54
Q

Whose closing statement does a recording of warranty deed appear on?

A

Buyer’s only

55
Q

What are the details to remember for a documentary fee?

A

$ per $100 of sales price

56
Q

A documentary fee is a _____ to a buyer and a _____ to the broker. _____ pays

A

debit buyer; credit broker; buyer pays

57
Q

What are the details to remember for new loan about?

A

Figures from the new lender

58
Q

A new loan amount is a _____ to a buyer (single entry)

A

credit

59
Q

Whose closing statement does a documentary fee appear on?

A

buyer’s only

60
Q

Whose closing statement does a new loan amount appear on?

A

Buyer’s only

61
Q

What is an assumption loan?

A

Buyer assumes a loan that is already in place with the seller

62
Q

Who decides if the new borrower is able to take over the loan already in place?

A

The lender

63
Q

True or False? Creditworthy borrower has to prove only good credit to take over the loan?

A

True

64
Q

*Are all assumption clauses found in the alienation clause in the deed of trust?

A

Yes

65
Q

*Do assumption clauses ever have an increase in interest rate?

A

No

CO RE Exam (10 decks)

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