1. Chapter 16: Title Closing and Escrow
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2. BUYER’S WALK -THROUGH
This is the final inspection of the proper ty just prior to
closing to make cer tain that the premises have been
vacated, no damage has occurred, agreed personal proper ty
is lef t behind, and that no real proper ty has been removed.
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3. 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.
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4. CLOSING TERMS
Title closing
Closing date
Closing
Settlement
Escrow
Deed Delivery
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5. ITEMS TO CONSIDER
Deed Delivery
Delays & Failure to close
Loan Escrow
Reporting Requirements
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6. Prorating at the Closing
Loan Interest
Rents
Property Taxes
Insurance
HOA fees
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PRORATING

7. Common Prorations
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8. Closing Transaction Summary
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9. Good Faith Estimate of Closing Costs
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10. NEW RESPA REGULATIONS
Effective January 2009, HUD announced its new mortgage
rules to help consumers shop for lower cost home loans.
HUD published a new Good Faith Estimate (GFE) form that
more clearly answers key questions when applying for a
mortgage, including the loan terms: prepayment penalties,
closing costs, balloon payments, and whether or not the
interest rate is fixed or is adjustable.
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11. New HUD-1 Settlement
Statement that allows
consumers to easily
compare their final
closing costs and loan
terms with those listed
on the new GFE.
The rules also require
that payments to
mortgage brokers will be
disclosed in a more
meaningful way to help
buyers select the lowest
cost loan.
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12. PAGE 2
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RIGHT TO CURE
• The rules give the loan originator
the opportunity to cure any violation
by reimbursing the borrower in any
amount in which the tolerance has
over exceeded.
• This reimbursement may be made
at settlement or within 30 calendar
days after settlement.

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