Colorado Real Estate Broker Exam — All Questions
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In a typical Colorado residential transaction, the document that authorizes the closing entity to disburse funds and directs how the closing is to be conducted is the:
- a.Closing Instructions signed by the parties✓
- b.Deed of trust
- c.Listing agreement
- d.Promissory note
Colorado uses a Commission-approved Closing Instructions form that the buyer and seller sign to authorize and direct the closing company on how to handle the closing and disburse funds. The deed of trust and promissory note relate to the loan security and repayment, not to instructions for conducting the closing. Proper closing instructions help ensure funds and documents are handled correctly.
Colorado secures most real estate loans using a deed of trust. If the borrower defaults, nonjudicial foreclosure is typically carried out through the:
- a.County sheriff acting as trustee
- b.Listing broker
- c.Public Trustee of the county✓
- d.Colorado Real Estate Commission
Colorado is a deed of trust state that uses a Public Trustee, a county office, to conduct nonjudicial foreclosures. The deed of trust conveys the property to the Public Trustee as security for the loan, allowing foreclosure without a full court action in most cases. This system distinguishes Colorado from pure mortgage states that rely on judicial foreclosure.