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©OnCourse Learning. All Rights Reserved. Chapter 22 Title Closing and Escrow ©OnCourse Learning. All Rights Reserved. In This Chapter You learn how the process evolves from the buyer’s walk-through to the closing meeting or escrow, prorations, & the settlement statement. ©OnCourse Learning. All Rights Reserved. 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. ©OnCourse Learning. All Rights Reserved. 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. ©OnCourse Learning. All Rights Reserved. RESPONSIBILITIES AT CLOSING SELLER’S BUYER’S REAL ESTATE AGENT’S ESCROW AGENT’S Reporting Requirements ©OnCourse Learning. All Rights Reserved. Prorations Insurance Loan Interest Property Taxes Rents ©OnCourse Learning. All Rights Reserved. Common Prorations ©OnCourse Learning. All Rights Reserved. Closing Transaction Summary ©OnCourse Learning. All Rights Reserved. HUD Settlement Statement Required of all federally related real estate lenders Form HUD-1A ©OnCourse Learning. All Rights Reserved. HUD Settlement Statement ©OnCourse Learning. All Rights Reserved. HUD Settlement Statement (continued) ©OnCourse Learning. All Rights Reserved. HUD Settlement Statement (continued) ©OnCourse Learning. All Rights Reserved. Real Estate Settlement Procedures Act To regulate and standardize real estate settlement practices when “federally related” first mortgage loans are made on residential property ©OnCourse Learning. All Rights Reserved. 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 Texas Restrictions on Closing Practices 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. ©OnCourse Learning. All Rights Reserved. HUD Settlement Statement required of all federally related real estate lenders GFE ©OnCourse Learning. All Rights Reserved. Key Terms Closing meeting Escrow agent Escrow closing Prorating RESPA Settlement statement Title closing Walk-through ©OnCourse Learning. All Rights Reserved.