© OnCourse Learning Chapter 16 : Title Closing and Escrow

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. BUYER’S WALK-THROUGH © OnCourse Learning

 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. TITLE CLOSING © OnCourse Learning

 Title closing  Closing date  Closing  Settlement  Escrow  Deed Delivery CLOSING TERMS © OnCourse Learning

 Deed Delivery  Delays & Failure to close  Loan Escrow  Reporting Requirements © OnCourse Learning ITEMS TO CONSIDER

 Prorating at the Closing  Loan Interest  Rents  Property Taxes  Insurance  HOA fees © OnCourse Learning PRORATING

Common Prorations © OnCourse Learning

Closing Transaction Summary © OnCourse Learning

Good Faith Estimate of Closing Costs © OnCourse Learning

NEW RESPA REGULATIONS Effective January 2009, 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 a mortgage, including the loan terms: prepayment penalties, closing costs, balloon payments, and whether or not the interest rate is fixed or is adjustable. © OnCourse 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. © OnCourse Learning PAGE 1

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© OnCourse Learning RIGHT TO CURE The rules give the loan originator the opportunity to cure any violation by reimbursing the borrower in any amount in which the tolerance has over exceeded. This reimbursement may be made at settlement or within 30 calendar days after settlement.

Closing meeting Escrow agent Escrow closing Prorating Real Estate Settlement RESPA Settlement statement Title closing Walk-through Key Terms © OnCourse Learning