The Real Estate Settlement Agreement serves as the primary document governing the closing of a real estate transaction in the United States. This agreement is essential when finalizing property transfers, documenting the terms of settlement between buyers and sellers, and ensuring compliance with federal regulations like RESPA and state-specific requirements. It includes crucial information about the property, purchase price, closing costs, and responsibilities of all parties involved. The document is particularly important for risk management and maintaining clear records of the transaction terms.
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1. Parties: Identification of all parties involved in the settlement
2. Background: Context of the transaction and reason for settlement
3. Definitions: Key terms used throughout the agreement
4. Property Description: Detailed legal description of the property
5. Purchase Price and Payment Terms: Details of the settlement amount and payment structure
6. Closing Costs: Allocation of settlement costs between parties
7. Representations and Warranties: Statements of fact by both parties
8. Governing Law: Applicable jurisdiction and laws
1. Contingencies: Conditions that must be met before closing
2. Escrow Provisions: Terms for handling escrow funds
3. Property Inspection: Terms regarding property inspection rights
4. Dispute Resolution: Procedures for handling disputes
1. Property Description Schedule: Detailed legal description and property boundaries
2. Settlement Statement: HUD-1 or Closing Disclosure Form showing all costs
3. Title Documents: Title report and related documentation
4. Disclosure Schedules: Required state and federal disclosures
Relevant legal definitions
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