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Closing Disclosure

A form that details all costs the buyer will owe at closing, provided at least three business days before the closing.

Earnest Money Deposit

A deposit made by the buyer that shows their commitment to purchasing the property, credited back at closing.

Net Loan Proceeds

The loan amount minus any costs the lender charged back to the buyer.

RESPA

The Real Estate Settlement Procedures Act that prevents brokers from providing kickbacks to settlement providers.

Accrued Items

Items that the seller has incurred but hasn't paid, which will be prorated at closing.

Seller Concessions

Financial assistance offered by the seller to cover buyer’s closing costs, recorded as a credit to the buyer.

Statutory Year Proration

A method that assumes there are 360 days in a year, with 30 days per month for prorating.

Escrow Holdback for Water

An amount typically required by Colorado closing companies to cover potentially unpaid water bills, entered as a debit in the seller’s closing statement.

Documentary Fee

A state fee in Colorado for real estate transactions, assessed at one cent for every $100 of the sales price.

Title Commitment

A document that outlines the conditions under which a title insurance policy will be issued.

VA-guaranteed Loan

A loan program that provides veterans with favorable loan conditions, including reduced closing costs.

Owner-Occupied

A property that the owner lives in, often with different financing rules than non-owner-occupied properties.

Survey

An assessment of property boundaries that may be requested as part of a real estate transaction.

Legal Documents for Closing

Includes the deed, bill of sale, promissory note, and deed of trust required to finalize a property sale.

Broker's Commission

A fee paid to real estate brokers for their services during a transaction, generally a percentage of the sale price.

Improvements Location Certificate (ILC)

A simplified survey that confirms the location of improvements on a property.

Property Tax Arrears

Property taxes that have not been paid for the previous year, which must be settled at closing.

Industry Standard

Common practices and benchmarks within the real estate industry to ensure consistency and fairness.

Closing Agent

The person or entity responsible for facilitating the closing of a real estate transaction.

Mortgage Interest Calculation

The process of determining the amount of interest due based on the outstanding loan balance over a specified period.

Proration

The process of dividing costs and expenses fairly between parties based on time and usage.