No one likes surprises….particularly when there are large sums of money involved. Imagine getting to the closing table of your real estate transaction, and out of no where discover there’s thousands of dollars in fees you weren’t anticipating, commissions were higher than expected and the state taxes weren’t what you were expecting. It could be a true mess for everyone involved. Thats exactly why there is a document called the closing disclosure and today we are going to talk about the details of what it entails and when you may expect to see it.
At the end of the transaction, just a few days before closing, both sides of the deal should get a document called the Closing Disclosure. This is sometimes referred to as the CD.
This disclosure insures that the money is accounted for properly. Every penny that exchanges hands, is supposed to be clearly documented and applied to the proper side. This should show who is getting paid and by whom. It will also show that any outstanding work done by contractors during the due diligence request have been paid for and all other fees are documented.
Side note….If the deal is an all cash deal, and no bank is involved you will find a similar item called the HUD will be used to provide similar details. Whichever is used, there may be items you don’t fully understand. Be sure to forward the disclosure to your agent and have them explain to you exactly what each line item is. It is important that you know where you money is going and coming from. Use their knowledge and expertise all the way to the closing table.
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Chris Whitehurst
Berkshire Hathaway-RW Towne Realty
252 312 2263