Escrow & Title
RESPA (Real Estate Settlement Procedures Act) requires that buyers receive:
AA survey of the property
BA Closing Disclosure at least 3 business days before closing✓ Correct
CTitle insurance at no cost
DA home warranty
Explanation
Under TRID/RESPA, buyers must receive the Closing Disclosure at least 3 business days before closing to review final loan terms and closing costs. This replaced the former HUD-1 Settlement Statement.
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Key Terms to Know
Title Insurance
Insurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
Closing CostsFees and expenses paid by the buyer and/or seller at the closing of a real estate transaction, in addition to the property's purchase price.
ProrationThe division of ongoing property expenses (taxes, HOA dues, rents) between buyer and seller at closing based on their respective days of ownership.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Math Concepts
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