Escrow & Title
What is the purpose of a 'settlement statement' (Closing Disclosure) at a Maine real estate closing?
ATo set the property tax assessment
BTo itemize all financial transactions including purchase price, loan amounts, prorations, and closing costs for buyer and seller✓ Correct
CTo record the deed at the Registry of Deeds
DTo confirm the buyer's credit score
Explanation
The settlement statement (Closing Disclosure for mortgage transactions) itemizes all financial aspects of the transaction — purchase price, mortgage proceeds, credits, debits, prorations, and closing costs — for both buyer and seller.
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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).
ProrationThe division of ongoing property expenses (taxes, HOA dues, rents) between buyer and seller at closing based on their respective days of ownership.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Math Concepts
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