Escrow & Title
At a Maine closing, the settlement agent distributes funds according to:
AThe seller's instructions only
BThe Closing Disclosure and the purchase and sale agreement✓ Correct
CThe listing agent's verbal instructions
DThe buyer's lender's instructions only
Explanation
At closing, the settlement agent distributes funds in accordance with the Closing Disclosure (which itemizes all credits and debits) and the terms of the purchase and sale agreement.
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Key Terms to Know
Purchase Agreement
A legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Title InsuranceInsurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
EscrowA neutral third-party arrangement where funds, documents, and instructions are held until all conditions of a real estate transaction are satisfied.
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.
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