Colorado Real Estate Broker Exam — All Questions
4 questions
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.Deed of trust
- b.Listing agreement
- c.Promissory note
- d.Closing Instructions signed by the parties✓
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.Colorado Real Estate Commission
- b.Public Trustee of the county✓
- c.Listing broker
- d.County sheriff acting as trustee
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.
A Colorado home sells for $450,000. The state documentary fee the county clerk and recorder collects when the deed is recorded is:
- a.$0, because residential conveyances are exempt
- b.$45.00✓
- c.$450.00
- d.$4,500.00
Colorado's documentary fee is one cent for each one hundred dollars of consideration, or major fraction thereof: $450,000 divided by $100 is 4,500, times $0.01 equals $45.00. No documentary fee is payable when the total consideration is five hundred dollars or less. Cite: C.R.S. 39-13-102(2).
The Real Property Transfer Declaration (TD-1000) that accompanies a Colorado deed presented for recording is:
- a.recorded alongside the deed and open to public inspection
- b.prepared by the closing company and filed with the Division of Real Estate
- c.required only when the property conveyed is commercial or industrial
- d.signed by the grantor or the grantee and sent to the county assessor, not recorded✓
The declaration prescribed by the property tax administrator must accompany any conveyance document presented for recording and be completed and signed by either the grantor or the grantee. The clerk and recorder does not record or file it; it is transmitted to the county assessor. If a grantee fails to supply it within thirty days of the assessor's notice, the penalty is $25 or twenty-five one-thousandths of one percent of the sale price, whichever is greater. Cite: C.R.S. 39-14-102(1).