Contracts
In Colorado, the 'Closing Instructions' form used in real estate transactions serves to:
AReplace the Contract to Buy and Sell Real Estate
BAuthorize the closing company to disburse funds and record documents according to contract terms✓ Correct
CSet the commission rates for the brokers
DEstablish the property's final sale price
Explanation
Colorado Closing Instructions form authorizes the title company or closing agent to disburse funds, pay off existing liens, pay commissions, and record the deed and other documents in accordance with the contract terms at closing.
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Key Terms to Know
Deed
A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
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.
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