Escrow & Title
When closing a North Dakota real estate transaction, the 'disbursement date' refers to:
AThe date the buyer signed the purchase agreement
BThe date funds are distributed to the seller, payoff of existing mortgages, commissions, and other parties✓ Correct
CThe date the property was listed on the MLS
DThe date the buyer's loan application was submitted
Explanation
The disbursement date is when the closing agent disburses funds after all closing conditions have been met: the seller receives proceeds, the existing mortgage is paid off, commissions are paid, and other closing costs are settled.
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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.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
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.
Math Concepts
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