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| Finalizing a real estate transaction: documents are signed and delivered and funds are transferred |
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an arrangement in which money and documents are held by a neutral 3rd party on behalf of the buyer and seller
the closing process by a neutral 3rd party |
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Exemptions to Escrow Agent Registration Act (who doesn't need an escrow license but still perform escrow duties):
(5 main catagories) |
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Definition
- Attorneys
- Title insurance companies & other insurance co.'s
- Banks, S&L's, Credit unions, fed. approved lenders
- Acting under supervision of court such as receivers, trustees in bankruptcy, guardians, executors, probate administrators
- RE brokers if on own transactions w/o add'l service fee |
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| Settlement statement is AKA: |
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| sets forth all the financial aspects of the transaction in detail |
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| Funds on deposit with a lender to pay the property taxes and insurance premiums when due |
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| To divide an expense and allocate it proportionately according to time, interest or benefit, determining what share of it a particular part is responsible for |
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| Form used by escrow or closing agent to report every sale of real property to the IRS |
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Foreign Investment in Real Property Tax Act
If seller is 'foreign', withhold 10% for IRS |
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Real Estate Settlement Procedures Act
- federal law
- 1974
2 goals:
1. Provide info on closing costs
2. Eliminate kickbacks and other unnessasary costs |
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| Mortgage servicing disclosure statement: |
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| Discloses whether the lender intends to service the loan or transfer it to another lender |
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| A written document that tells the escrow agent how to proceed and states the conditions each party must fulfill before the transaction can close |
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