Contracts
In Colorado, the 'Seller's Disclosure of Settlement Costs' provision in the CBS contract means:
AA. The seller must pay all closing costs
BB. The seller agrees to itemize all concessions or credits being given to the buyer, which must be disclosed to the lender✓ Correct
CC. The title company must approve all seller credits
DD. The seller receives a detailed cost breakdown
Explanation
Seller concessions (credits to the buyer for closing costs) must be disclosed to the buyer's lender. Undisclosed concessions can constitute mortgage fraud. The CBS contract requires that any seller-paid closing costs or credits be clearly documented and disclosed, ensuring the lender's underwriting is based on accurate information.
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