Unit 7

Question 1

Who is the three-party agreement between?

Answer 1

Buyer, seller, and closing company

Question 2

Who selects the closing company?

Answer 2

Listing broker and the seller or buyer

Question 3

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

Answer 3

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

Question 4

*What is the closing companies job?

Answer 4

Close the transaction according to the terms of the contract.

Question 5

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

Answer 5

1. Set terms of transfer

2. Determines who pays for what

Question 6

Who charges the closing fees and are they negotiable?

Answer 6

A closing company and yes, they are negotiable

Question 7

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

Answer 7

Yes

Question 8

What is the purpose of a deed?

Answer 8

To convey title to real property

Question 9

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

Answer 9

$0.01 per $100

Question 10

What is the purpose of a Bill of Sale?

Answer 10

Convey title to personal property

Question 11

What does the Certificate of Taxes Due report?

Answer 11

Reports the Ad Valorem taxes (aka assessed taxes due)

Question 12

Who verifies the amount of taxes owed?

Answer 12

The county

Question 13

*What is TD-1000?

Answer 13

Real Property Transfer Declaration

Question 14

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

Answer 14

At closing

Question 15

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

Answer 15

Required by the state and sent to the county addessor

Question 16

*What does the Real Property Transfer Declaration do?

Answer 16

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

Question 17

Does the Real Property Transfer Declaration transfer personal property?

Answer 17

No. A Bill of Sales does

Question 18

Who does the selling broker represent?

Answer 18

The buyer

Question 19

Who is responsible for the overall supervision of the closing?

Answer 19

The listing broker

Question 20

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

Answer 20

At closing; by the respective broker to each party

Question 21

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

Answer 21

True

Question 22

What does the buyers statement contain?

Answer 22

Only the buyer’s debits and credits

Question 23

What does the sellers statement contain?

Answer 23

Only the seller’s debits and credits

Question 24

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

Answer 24

The respective broker for each side

Question 25

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

Answer 25

All brokers involved + employing broker

Question 26

*What are considered good funds?

Answer 26

- Cashier's check from a commercial bank - Teller's checks from a savings and loan - Fund conveyed using the federal funds wire transfer system

Question 27

What are NOT considered good funds?

Answer 27

- Business checks - personal checks - money market checks - certificate of deposit - title insurance company checks

Question 28

What is the 2% nonresident seller income tax withholding?

Answer 28

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

Question 29

Who is responsible to withhold the 2% fee?

Answer 29

The closing entity

Question 30

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

Answer 30

True (all of the following except question)

Question 31

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

Answer 31

$100,000+

Question 32

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

Answer 32

Take the seller's net proceeds of sale

Question 33

What must the broker do immediately after closing?

Answer 33

Must return all closing docs to the employing broker

Question 34

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

Answer 34

Debit buyer, Credit seller

Question 35

Whose closing statement does the sales price appear on?

Answer 35

Both the buyer and seller

Question 36

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

Answer 36

Credit buyer, debit broker

Question 37

Whose closing statement does the earnest money appear on?

Answer 37

buyers only

Question 38

What is an assumed loan amount?

Answer 38

principal remaining on loan assumed by buyer

Question 39

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

Answer 39

?credit buyer; debit seller

Question 40

Whose closing statement does the assumed loan amount appear on?

Answer 40

Both the buyer and seller

Question 41

What is Accrued interest on assumed loan?

Answer 41

Prorated seller owes buyer for month of closing

Question 42

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

Answer 42

Debit seller; credit buyer

Question 43

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

Answer 43

Both the buyer and seller

Question 44

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

Answer 44

Seller pays owner's policy

Question 45

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

Answer 45

Debit seller, credit broker

Question 46

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

Answer 46

Seller's only

Question 47

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

Answer 47

Buyer pays lender's policy

Question 48

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

Answer 48

Debit buyer; Credit broker

Question 49

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

Answer 49

Buyer's only

Question 50

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

Answer 50

Who signs documents pays notary; seller signs deed

Question 51

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

Answer 51

Debit seller; Credit broker

Question 52

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

Answer 52

Recording deed benefits buyer/grantee

Question 53

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

Answer 53

Debit buyer, Credit broker

Question 54

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

Answer 54

Buyer's only

Question 55

What are the details to remember for a documentary fee?

Answer 55

$ per $100 of sales price

Question 56

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

Answer 56

debit buyer; credit broker; buyer pays

Question 57

What are the details to remember for new loan about?

Answer 57

Figures from the new lender

Question 58

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

Answer 58

credit

Question 59

Whose closing statement does a documentary fee appear on?

Answer 59

buyer's only

Question 60

Whose closing statement does a new loan amount appear on?

Answer 60

Buyer's only

Question 61

What is an assumption loan?

Answer 61

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

Question 62

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

Answer 62

The lender

Question 63

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

Answer 63

True

Question 64

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

Answer 64

Yes

Question 65

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

Answer 65

No