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Title Closing and Escrow

Chapter 15. Title Closing and Escrow. In This Chapter. You learn how the process evolves from the buyer’s walk-through to the closing meeting or escrow. Buyer’s Walk-Through.

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Title Closing and Escrow

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  1. Chapter 15 Title Closing and Escrow

  2. In This Chapter You learn how the process evolves from the buyer’s walk-through to the closing meeting or escrow.

  3. Buyer’s Walk-Through This is the final inspection of the property just prior to closing to make certain that the premises have been vacated, no damage has occurred, agreed personal property is left behind, and that no real property has been removed.

  4. Title Closing • This occurs when the buyer pays for the property and the seller delivers the deed. • Settlement meeting – seller meets in person with the buyer and delivers the deed. • Escrow – use of a neutral third party, called the escrow agent, who acts on behalf of both buyer and seller to carry out instructions of the contract.

  5. RESPONSIBILITIES AT CLOSING • SELLER’S • BUYER’S • REAL ESTATE AGENT’S • ESCROW AGENT’S • Reporting Requirements

  6. Prorations • Insurance • Loan Interest • Property Taxes • Rents

  7. Common Prorations

  8. Closing Transaction Summary

  9. HUD Settlement Statement • Required of all federally related real estate lenders • Form HUD-1A

  10. HUD Settlement Statement

  11. HUD Settlement Statement (continued)

  12. HUD Settlement Statement (continued)

  13. RESTRICTIONS ON CLOSING PRACTICES • prohibits title company kickbacks • does not allow referral fees • prohibit what titles companies can pay for outside of their normal business activities Note: Title companies can participate in associations of real estate practitioners, attorneys, builders, and developers, and deliver documents or funds to the parties of a closing, so long as they pay the market rate for participating.

  14. Key Terms • Closing meeting • Escrow agent • Escrow closing • Prorating • RESPA • Settlement statement • Title closing • Walk-through

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