Escrow & Title
What is the purpose of a HUD-1 Settlement Statement (now replaced by the Closing Disclosure)?
ATo disclose the agent's commission only
BTo itemize all financial transactions and charges for both buyer and seller at settlement✓ Correct
CTo record the deed in the land records
DTo confirm the property passed inspection
Explanation
The Closing Disclosure (formerly HUD-1) itemizes all costs, credits, and financial transactions for both buyer and seller at settlement.
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- In Maryland, the primary purpose of the settlement statement (Closing Disclosure or HUD-1) is to:Contracts (alternative)
- A Maryland real estate settlement sheet (HUD-1 or Closing Disclosure) shows a 'debit' to the buyer for:Escrow & Title
- The Closing Disclosure under TRID must be provided to the buyer at least how many business days before settlement?Finance
- In Maryland, the HUD-1/Closing Disclosure must be provided to the buyer and seller at or before:Escrow & Title (alternative)
- In Maryland, if a seller has an existing mortgage at settlement, the proceeds are used to:Escrow & Title
- In Maryland, the settlor (seller) at a real estate closing typically receives:Escrow & Title
Key Terms to Know
Deed
A 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.
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.
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.
Math Concepts
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