The Closing Process
This is the final step where ownership of property is legally transferred.
What is closing (or settlement)?
These are expenses paid at closing in addition to the purchase price.
What are closing costs?
Legal right to own, use, and control property.
What is title?
The document that creates the mortgage lien on the property.
What is the mortgage or deed of trust?
This is when the buyer physically takes control of the property.
What is possession?
The person who oversees the closing process and ensures documents are properly signed.
What is a closing agent or escrow officer?
Fee paid to the lender for processing the loan application.
What is an origination fee?
A problem or claim against a property that can affect ownership.
What is a lien or encumbrance?
A borrower's promise to repay the loan.
What is a promissory note?
Agreement allowing the seller to remain in the home after closing.
What is a rent-back or seller possession after closing agreement?
The document that officially transfers ownership from seller to buyer.
What is the deed?
Insurance that protects against defects in the property title.
What is title insurance?
Insurance that protects the buyer from past ownership claims.
What is title insurance?
A federal form that outlines final loan terms and closing costs.
What is the Closing Disclosure (CD)?
A legal right allowing someone to cross or use part of another’s property.
What is an easement?
The meeting where buyer, seller, and lender finalize the transaction.
What is a closing meeting?
Taxes paid when property ownership is transferred.
What are transfer taxes?
The process of verifying legal ownership and identifying defects.
What is a title search?
Insurance required by lenders to protect against property loss.
What is homeowners insurance?
Issues discovered after closing that may involve hidden defects or claims.
What are post-closing disputes or title defects?
The account where funds are held until all conditions of the sale are met.
What is escrow?
Document that lists all final credits and debits in the transaction.
What is the Closing Disclosure (or settlement statement)?
A person or company that ensures title is clear before closing.
What is a title company?
Document confirming borrower has received loan terms before closing.
What is loan disclosure/initial disclosure forms?
The final document recorded with the county to make ownership official.
What is the deed recording?