AZ - Escrow and Settlement – Flashcards Graded A

AZ - Escrow and Settlement – Flashcards Graded A+ Closing ️The settlement of a real estate transaction in which a property transfer occurs Closing agent ️Manages the closing process, presents and explains all of the closing documents to the parties, and obtains signatures; may be an attorney, broker, or a title company representative Truth in Lending Act (TILA) ️Requires that lenders disclose the annual percentage rate, loan terms, and total borrower costs before extending credit to borrowers Real Estate Settlement Procedures Act (RESPA) ️Ensures that buyers in residential real estate transactions financed by federally-related mortgage loans have information about all settlement costs via disclosures TILA-RESPA Integrated Disclosures (TRID) ️Requires that lenders use the TRID disclosure forms—the Loan Estimate (LE) and Closing Disclosure (CD)—for all federally related new residential mortgage applications. Loan Estimate form (LE) ️Lists charges the buyer is likely to pay at settlement Closing Disclosure form (CD) ️Provides information about all costs that will be settled at closing Closing statement ️A document signed and agreed to at closing that reconciles both the buyer's and the seller's final financial obligations Seller net sheet ️An estimate the seller's agent prepares that estimates the seller's net proceeds in the event the seller accepts the buyer's offer Debit ️An amount a party has to pay Credit ️An amount that appears as a sum in the party's favor—an already paid, reimbursed, or promised amount Proration ️An amount that is divided proportionally between the buyer and seller Double escrow ️When someone contracts to buy a property at one price and then contracts to sell that property at a higher price, and both closings take place on the same day, often at the same time; aka double closing or simultaneous closing Foreign Investment in Real Property Tax Act (FIRPTA) ️Requires non-residents who sell real property