Escrow & Title
An Indiana closing agent who accepts funds but does not disburse them as required by the HUD-1 or Closing Disclosure may be subject to:
AOnly a civil fine
BCriminal charges for theft or embezzlement and regulatory sanctions✓ Correct
COnly a license suspension
DA RESPA violation only
Explanation
Misappropriation of closing funds is a serious legal violation. A closing agent who misuses closing funds may face criminal prosecution for theft or embezzlement in addition to civil penalties and professional sanctions.
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Key Terms to Know
Closing Costs
Fees 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.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
EasementA non-possessory right to use another person's land for a specific purpose.
EncumbranceAny claim, lien, charge, or liability attached to real property that affects its value or limits its use.
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