Escrow & Title

In Colorado, the 'Settlement Statement' (HUD-1 or Closing Disclosure) serves what function at closing?

AA. It replaces the deed
BB. It provides an itemized accounting of all funds collected and disbursed for both buyer and seller✓ Correct
CC. It serves as proof of insurance
DD. It is not required in Colorado

Explanation

The Closing Disclosure (or Settlement Statement) is a detailed accounting of the transaction, showing all costs, credits, and funds for both buyer and seller. Under TRID rules, lenders must provide it to the buyer at least 3 business days before closing for most purchase transactions.

Related Colorado Escrow & Title Questions

Practice More Colorado Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Colorado Quiz →