In Colorado, a 'simultaneous closing' means that in a 1031 exchange:
Why Both the relinquished property sale and the replacement property purchase close at the same time Is Correct
Answer B: Both the relinquished property sale and the replacement property purchase close at the same time
Exam Tip: Contracts
Contract questions frequently test the essential elements required for a valid contract. Remember: competent parties, mutual consent, lawful object, and sufficient consideration. Watch for void vs. voidable distinctions.
Key Contracts Terms in This Question
People Also Study
Related Colorado Questions
- A Colorado investment property sells for $820,000. The buyer uses a 1031 exchange (tax-deferred exchange). To defer all capital gains, the replacement property must cost at least:Real Estate Math
- The Colorado Real Estate Commission-approved contract for the purchase and sale of residential property is called the:Contracts
- Under a Colorado Contract to Buy and Sell, if the seller fails to close on the Closing Date, the buyer's remedies may include:Contracts
- In a Colorado real estate contract, 'time is of the essence' means:Contracts
- A Colorado property is sold and the deed is signed but not yet recorded. Before recording, a second buyer who has no knowledge of the first sale purchases the same property and immediately records their deed. Under Colorado's race-notice statute, who prevails?Escrow & Title
- A Colorado property owner using a 'like-kind exchange' (1031 exchange) can defer capital gains taxes by:Finance
- A Colorado seller's net sheet shows: sale price $485,000, commission 5.5%, mortgage payoff $195,000, prorated taxes $1,200, other closing costs $2,800. What are the net proceeds?Real Estate Math
- In Colorado, when a property is transferred by 'devise' through a will, it means:Property Ownership
Key Terms to Know
A tax-deferred exchange allowing investors to sell one investment property and reinvest proceeds in a like-kind property while deferring capital gains taxes.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
Math Concepts
Study This Topic
Practice More Colorado Real Estate Questions
1,400+ questions covering all exam topics. Start free — no signup required.
Take the Free Colorado Quiz →