© 2010 by cengage learning chapter 16 ________________ title closing and escrow
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© 2010 by Cengage Learning
Chapter 16
________________Title Closing and Escrow
© 2010 by Cengage Learning
Buyer’s Walk-Through
This is the final inspection of the property just prior to closing to make certain that the premises have been vacated, no damage has occurred, agreed personal property is left behind, and that no real property has been removed.
© 2010 by Cengage Learning
Title Closing
This occurs when the buyer pays for the property and the seller delivers the deed.
Settlement meeting – seller meets in person with the buyer and delivers the deed.
Escrow – use of a neutral third party, called the escrow agent, who acts on behalf of both buyer and seller to carry out instructions of the contract.
© 2010 by Cengage Learning
Closing Terms Title closing Closing date Closing Settlement Escrow
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Common Prorations
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Closing Transaction Summary
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Good Faith Estimate of Closing Costs
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HUD Settlement S
tatement
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HUD Set
tlem
ent S
tate
men
t
© 2010 by Cengage Learning
NEW RESPA REGULATIONS
On November 12, 2008, HUD announced its new mortgage rules to help consumers shop for lower cost home loans.
HUD published a new Good Faith Estimate (GFE) form that more clearly answers key questions when applying for amortgage, including the loan terms: prepayment penalties, closing costs, balloon payments, and whether or not the interest rate is fixed or is adjustable.
© 2010 by Cengage Learning
New HUD-1 Settlement Statement that allows consumers to easily compare their final closing costs and loan terms with those listed on the new GFE.
The rules also require that payments to mortgage brokers will be disclosed in a more meaningful way to help buyers select the lowest cost loan.
© 2010 by Cengage Learning
Closing meeting Escrow agent Escrow closing Prorating
RESPA* Settlement statement Title closing Walk-through
Key Terms
* Real Estate Settlement Procedures Act
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