At the settlement, our settlement officer "closes" the transaction by explaining (as permitted under local law) each of the closing documents and ensuring that the buyer and seller sign each where required. The settlement officer also reviews with the parties a settlement statement (HUD-1) which shows how all of the settlement funds are to be handled.

The parties' respective shares of the closing costs are typically outlined in the sales contract. Closing costs may include state and local government transfer and recordation taxes and fees, lender and broker fees, real estate commissions, municipal charges, bills for pest inspections and surveys, homeowner insurance premiums, lenders' and owners' title insurance premiums, title company charges, real property taxes, homeowners' or condominium association dues or assessments, and any other invoices or items to be paid or adjusted at closing. Funds are often held in escrow by Masters Title to respond to various items or circumstances agreed to in advance by the parties.

Whenever possible, parties to the transaction are provided a draft copy of the HUD-1 form well in advance of closing for their review. Once the parties approve the figures on the settlement statement, the settlement officer collects all necessary funds and then disburses them in accordance with the settlement statement.