Tx cont-16

1. Unit 6: Transaction
Process and Closing

2. UNIT 6: TRANSACTION PROCESS AND
CLOSING
Importance of Pre-Closing Procedures
 The Seller’s Responsibility
 Provide Clear Title
 Provide Documents to Escrow
 Provide Access to the Property
 Provide Proof of Repairs (if required)
 Provide Proof of Residential Service Contract

3. UNIT 6: TRANSACTION PROCESS AND
CLOSING
Importance of Pre-Closing Procedures
 The Buyer’s Responsibility
 Provide Adequate Funds to Close
 Review and Approve the Title Commitment
 Parts of a Title Commitment
 Schedule “A”
 Schedule “B”
 Schedule “C”
 Schedule “D”
 Schedule Inspections
 Obtain Insurance Coverage
 Do a Final Walk Through
 The Lender’s Responsibility

4. UNIT 6: TRANSACTION PROCESS AND
CLOSING
Steps in Escrow Closings
 Who May Be an Escrow Officer?
 Basic Requirements to Open Escrow
 Binding Contract  Conditional Delivery
 General Escrow Principles and Rules
 Open Escrow  Order Title Search
 Request Demands and/or  Receive Survey from Seller
Beneficiary Statements  Receive Reports
 Receive Homeowner’s  Receive New Loan
Insurance Policies Instructions and Documents
 Receive Funds to Close  Prepare Deeds
 Prepare Settlement Statement  Audit File
 Close the Escrow

5. UNIT 6: TRANSACTION PROCESS AND
CLOSING
Closing Costs
 Prorated Costs
 Prorate Property Tax
 Prorate Interest on Loan Assumption
 Escrow (Impound) Account
 Allocate Costs
 Typical Seller’s Costs
 Typical Buyer’s Costs
 What are Credits and Debits?

6. UNIT 6: TRANSACTION PROCESS AND
CLOSING
Settlement (Closing) Statements
 Estimated Closing Statements
 Seller’s Estimated Statement
 Buyer’s/Borrower’s Estimated Statement
 HUD-1 Settlement Statement
 Page 1
 Page Two
 Page Three
 CFPB – Closing Disclosure

7. UNIT 6: TRANSACTION PROCESS AND
CLOSING
Title Insurance
 Types of Title Insurance Policies
 Owners’ Policies
 Loan Policy
 Title Insurance Coverage
 What a Title Policy Covers
 What a Title Policy Does not Cover
 Regulation of the Title Insurance Industry
 Real Estate Settlement Procedures Act
 Undisclosed Rebates or Kickbacks
 Selection of Title Company
 Limitation on the Amount of Funds in an Escrow Account
 Uniform Settlement Statement – HUD-1
 Controlled Business Arrangements
 Texas Department of Insurance
 Premiums
 Rebates Prohibited