Check Your Understanding-Answers
- What is the Closing Disclosure?
The required form that details the costs that the buyer and seller will pay at closing.
- What is the ultimate result of using the Closing Disclosure form?
The buyer will see the actual debits and credits for the purchase and know exactly how much money to bring to closing. The seller will know exactly how much he or she will receive at closing.
- If an item is paid for in advance by the seller, how will it be handled on the settlement statement?
The buyer will receive a debit and the seller will receive a credit.
- What do you call those items that have been incurred by the seller but not paid, and how will they be handled on the settlement statement?
These items are paid in arrears. The buyer will get a credit and the seller will get a debit.
