Term
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Definition
Real Estate Settlement Proceedures Act
The purpose of this is to protect the consumer who obtains a loan to purchase a 1-4 family dwelling. |
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Term
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Definition
The lender must provide the borrower w/a consumer info booklet w/in 3 business days following the mortgage loan application date
The lender has 3 days to provide a good faith estimate of settlement costs that the buyer is likely to incurr
The HUD-1 settlement statement must be used at the accutal settlement and the borrow must receive a completed copy
The borrow has the right to review the settlement statement 1 day before closing
Parties that arrange for settlement serviecs cant get a kickback, rebate or fee for services not performed, and MUST disclose to borrower any interests or arrangements if referring a borrower to that provider.
Seller can't require specific providers
Excess funds paid by borrower cannot exceed to months worth of funds
Brokerages may use a computerized loan if they disclose the fee in writing |
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Term
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Definition
| Anywhere, usually the title insuance agency's location |
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Term
| Who should be consulted regarding settlement date |
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Definition
| seller, buyer, lender, title insurance company, attorneys, and cooperating brokers |
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Term
| Who should attend settlement |
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Definition
| seller, buyer, attorneys, and cooperating brokers |
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Term
| What documents must be at settlement |
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Definition
Mortgage documents and check for buyer
Deposit check
New Deed
Hazard and or flood insurance policy/binder as well as buill or receipt
Title insurance policy or binder
Certifications or receipts for property taxes and other lienable municipal services
Wood infestation report if required
Pay-off statements for seller's mortgage and other liens
Certificate of occupancy
Other certifications and or reports which may be required by the purchase agreement or a lender as well as a bill of sale or receipts for all certificates/reports |
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Term
| What is the role of the settlement officer at settlement |
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Definition
Complete the requests of the title insurance company and the buyer/borrower's lender
complete the settlement statement
Collect and disperse funds |
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Term
| What is the role of the real estate agents/attorneys |
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Definition
Provide the settlement officer with necessary information and documents
explain the documents that must be signed
explain the settlement statement
Collect their fee |
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Term
| What is the role of the seller at settlement |
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Definition
sign documents, including the deed
approve the settlement statement
give deed and keys to the buyer
receive a proceeds check |
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Term
| What is the role of the buyer at settlement |
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Definition
Sign documents
approve the settlement statement
pay additional funds as required
receive teh deed and keys from the seller |
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Term
| section 35.334 PA state Real Estate Commission's rules and Regulations |
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Definition
Requires real estate liscensees to provide a written estimate of closing costs to the parties before they sign the purchase agreement.
This will need to be amended with counter offers.
Just prior to settlement another estimate should be provided so the parties have funds to complete the transaction |
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Term
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Definition
Any of these can be negotiated as to who pays
Title insurance
Recording fees
Transfer tax
Survey
Notary fee
FINANCE RELATED
appliaction fee
appraisal fee
credit report
loan origination fee
loan discount fee
VA Funding fee
Mortgage insurance
Interest to the first payment
Wood infestation report
Reserves deposited w/lender for escrow account
Hazard Insurance
Flood Insurance
Taxes
MISC
Brokerage commissions
Broker Services
Certificate of Occupancy
Other certifications |
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Term
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Definition
To divide, distrubute, or assess proportionately based upon the date of settlement.
Necessary for property taxes, water and sewer, association fees, interest on a mortage assumption, rents on an income producing property. |
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Term
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Definition
Uniform Settlement Statement is an itemization of all charges which helps to make sure that they are paid by the proper party.
It determines the seller's net proceeds from the sale, this will occur if the sale price exceeds the total of the seller's closing costs and liens
Determin the amount of additional funds required from the buyer to complete the transaction. These funds should be brought to the settlement as cash or certified check. |
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