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Chapter 16

________________Title Closing and Escrow

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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.

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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.

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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

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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.

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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.

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Closing meeting Escrow agent Escrow closing Prorating

RESPA* Settlement statement Title closing Walk-through

Key Terms

* Real Estate Settlement Procedures Act