Closings & Settlement (11 items; 15%) Flashcards Preview

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Flashcards in Closings & Settlement (11 items; 15%) Deck (11)
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1

The _________ is responsible for reporting change of ownership of water wells to the Colorado ____________ of __________ Resources.

buyer

Division of Water

2

Colorado charges a documentary fee (___% of $_____) when transferring property. This fee lets the county know the exact price of the _______ _________.

(1% of $100) transferred property.

3

The CREDIT columns for the seller and buyer record ________ in ________

OR amounts  ________ to that party to the transaction.

 

The sales price of a property is a _________ (debit/credit) on the ___________ (buyer's/seller's) ledger.

INcreases in value; owed

 

 

credit;

seller's

4

The DEBIT columns for the seller and buyer record _________ in ________

OR amounts ________ to that party to the transaction.

 

The sales price is a ______ (debit/credit) to the ______ (buyer/seller).

DEcreases in value;  

owed

 

 

DEBIT to the BUYER. 

5

The credit and debit columns for the closing entity (sometimes the broker) reflect amounts  _________ OR _____ on behalf of the seller and buyer.

The entries in these columns are opposite to the entries in the __________ and _________ ledgers.

collected OR paid;

 

seller's and buyer's

6

The amount paid TO the Seller at the end of the calculations is a ___________ to the seller because the seller _______ the funds at closing.

It is a ____________ to the closing entity.

DEBIT, receives

CREDIT

7

The amount paid BY the Buyer at the end of the calculations is a ______ (debit/credit) to the buyer because he is _________ the funds at closing. It is a __________ (debit/credit) to the closing entity.

CREDIT, paying DEBIT

8

Earnest money is a ______ (debit/credit) to the buyer and a __________ (debit/credit) to the closing entity.

CREDIT

DEBIT

9

Most of the SMALL FEES at closing, including:

-recording the warranty deed

-deeds of trust

-documentary fee

-tax certificate fee

-loan service fees

-credit reports

...are paid for by the _______ ( ______ [debit/credit] buyer and _____ [debit/credit] closing entity.)

buyer

(debit; credit) 

10

The release of a recorded deed of ______ is paid for by the ________ since it is related to closing out the prior ___________.

(_______  [debit/credit] seller and _______ [debit/credit] closing entity).

trust; seller; mortgage

(debit; credit)

11

The buyer assuming a loan assumes:

-The remaining _______ ______ of the note.

-Any ________ ________ such as tax and insurance reserves.

-_____-_______ insurance (if chosen by the buyer)

-The year's _____ liability for the previous year   (If lender ________ and closing is prior to _______.)

- principal balance

- reserve balance

- Home-owners

- TAX (escrowed; April 30th)