Lesson 18 – Ch 14 Vocabulary Quiz

The final stage of a real estate transaction, in which documents are signed and delivered and funds are transferred, Also called settlement.

A third party who holds money and documents and carries out the closing process. If the closing is handled via escrow instead of face-to-face, this person may be called an escrow agent.

An arrangement in which money and documents are held by a third party on behalf of the buyer and the seller.

A bilateral contract between the buyer and the seller that tells the escrow agent how to proceed and states the conditions each party must fulfill before the transaction can close

A statement that sets forth all of the financial aspects of a real estate transaction in detail and indicates how much cash each party will be required to pay or will receive at closing.

A charge payable by a party, either to the other party or to a third party

A charge payable to a party, either by the other party or to a third party.

Funds on deposit with a lender to pay the property taxes, insurance premiums, and other recurring costs when due. also called an impound account

To divide and allocate an expense proportionately, according to time, interest, or benefit, determining what share of it a particular party is responsible for.

Interest on the buyer’s new mortgage loan that the lender requires to be paid at closing, covering the period from the closing date through the last day of the month.

A form the TRID rule requires a lender to give to a loan applicant, providing detailed information about the loan and estimates of the closing costs.

A closing in which the seller and buyer personally meet to exchange the deed, money, and other documents. Also called roundtable closing, passing papers, settlement and transfer.