Page 12 - King Title & Escrow Guide

UNDERSTANDING
THE SETTLEMENT
STATEMENT Net Proceeds

N e t p r o c e e d s r e f e r s t o t h e a m o u n t
Based on the terms of the Purchase and
r e c e i v e d b y t h e s e l l e r a r i s i n g f r o m t h e s a l e
Sale Agreement and instructions from the
lender (when financing is applicable), your o f a p r o p e r t y . T h i s i s d i f f e r e n t f r o m t h e
escrow officer balances the debits and h o m e o w n e r ' s e q u i t y , o r g r o s s p r o c e e d s i n
credits for both the buyer and seller for t h e h o m e , b e c a u s e i t t a k e s i n t o a c c o u n t
the transaction. Both parties will receive a a l l c o s t s a n d e x p e n s e s t h a t a r e d u e f r o m
settlement statement to review and t h e s e l l e r a s p a r t o f t h e s a l e .
acknowledge all of the debits & credits for Right of Rescission
their perspective sides of the transaction.
When financing from an institutional T h e r i g h t o f r e s c i s s i o n i s a r i g h t , s e t f o r t h
lender is involved, both buyer and seller b y t h e T r u t h i n L e n d i n g A c t ( T I L A ) u n d e r
will receive not only a settlement U . S . F e d e r a l L a w o f a b o r r o w e r t o c a n c e l a
statement but also a closing disclosure, as h o m e e q u i t y l o a n o r l i n e o f c r e d i t w i t h a
required by the Consumer Financial n e w l e n d e r , o r t o c a n c e l a r e f i n a n c e
Protection Bureau (CFPB). t r a n s a c t i o n d o n e o n a p r i m a r y r e s i d e n c e ,

w i t h i n t h r e e d a y s o f c o n s u m m a t i o n .
Closing Costs
Closing Disclosure
C l o s i n g c o s t s a r e t h e e x p e n s e s , o v e r a n d
F o r a b u y e r , t h e c l o s i n g d i s c l o s u r e i s a f o r m
a b o v e t h e p r i c e o f t h e p r o p e r t y t h a t
y o u r l e n d e r p r o v i d e s t o y o u , a m i n i m u m o f
b u y e r s a n d s e l l e r s i n c u r t o c o m p l e t e a
t h r e e d a y s b e f o r e y o u r c o n s u m m a t i o n
r e a l e s t a t e t r a n s a c t i o n . T h e s e c o s t s c a n
( s i g n i n g o f t h e l o a n d o c u m e n t s ) . I t o u t l i n e s
i n c l u d e , b u t a r e n o t l i m i t e d t o , a n y
t h e f i n a l t e r m s a n d c o s t s o f y o u r m o r t g a g e a s
e x p e n s e s r e l a t e d t o o b t a i n i n g a l o a n ,
w e l l a s t h e c o s t s t o p u r c h a s e t h e p r o p e r t y .
g o v e r n m e n t a l c h a r g e s s u c h a s p r o p e r t y
F o r a s e l l e r t h e c l o s i n g d i s c l o s u r e i s a f o r m
t a x e s a n d r e a l e s t a t e e x c i s e t a x ,
y o u r e s c r o w o f f i c e r p r o v i d e s t o y o u o u t l i n i n g
h o m e o w n e r s i n s u r a n c e , t i t l e & e s c r o w
t h e f i n a l c o s t s o f t h e s a l e . F o r b o t h t h e b u y e r
c h a r g e s , c o m m i s s i o n s a n d H o m e o w n e r s
a n d s e l l e r i t i s o n e o f t h e m o s t i m p o r t a n t
A s s o c i a t i o n ( H O A ) c h a r g e s , t o n a m e a
p i e c e s o f p a p e r w o r k y o u ' l l r e c e i v e , s o b e s u r e
t o t a k e a f e w m o m e n t s t o r e v i e w t h e d e t a i l s . f e w .
P A G E 1 0 S T R E N G T H | E X P E R T I S E | S E R V I C E