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Closing Procedures

Principles 2 Chapter 22
Horizontales
Any person who extends consumer credit more than 25 times each year or more than 5 times each year if the transactions involve dwellings as security
On a closing statement, items of expense that are incurred but not yet payable, such as interest on a mortgage loan or taxes on real property
To divide or distribute expenses, either prepaid or paid in arrears, between buyer and seller at the closing (such as taxes, interest, and rents)
Item on a closing statement that has been paid in advance by the seller, such as insurance premiums, which must be reimbursed to the seller by the buyer
Th person responsible for conducting the settlement of a real estate sale
Involves an accounting of the parties' debits and credits
The Real Estate Settlement Act
The closing of a transaction through a third party called an escrow agent who receives certain funds and documents to be delivered on the performance of certain conditions outlined in the escrow agreement
Verticales
On closing statement, an amount entered in a person's favor - either an amount the party has paid or an amount for which the party must be reimbursed
An individual, partnership, corporation, or Texas government agency that seeks or acquires, by purchase or lease, any goods or services, as defined by the TDTPA
A detailed cash accounting of a real estate transaction showing all cash received, all charges and credits made, and all cash paid out in the transaction
The lender must provide this document to the borrower within three days of the date the borrower submits a loan application to the lender
May be an attorney, a title company, a trust company, an escrow company, or the escrow department of a lending institution
The consummation of a real estate transaction, when the seller delivers title to the buyer in exchange for payment by the buyer of the purchase price
On a closing statement, an amount charged, that is, an amount that a party must pay