Contracts
In New Mexico, what is the primary purpose of a 'closing disclosure' (formerly HUD-1) given to a buyer in a mortgage transaction?
ATo transfer title to the buyer
BTo provide a detailed, itemized accounting of all charges and credits to the buyer and seller at closing✓ Correct
CTo satisfy the seller's disclosure requirements
DTo confirm the buyer's mortgage approval
Explanation
The Closing Disclosure itemizes all financial aspects of the transaction for both buyer and seller—including loan terms, closing costs, prepaids, and net proceeds/amount due at closing.
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