What is a Closing Disclosure?

Closing Disclosures: What You Need to Know


If you're purchasing a home or other residential property, U.S. government regulations under the Dodd-Frank Act's TILA-RESPA rules mandate that you be provided a form called a closing disclosure, which you'll have to sign in order to close the deal. According to federal law, you have the right to see your closing disclosure at least 3 business days before closing. 

What is typically covered on a closing disclosure form? 

A closing disclosure form usually covers expenses including: 

  • Outstanding mortgages to be paid
  • Amount of new loan 
  • Loan origination fees
  • Property appraisal costs
  • Title insurance costs 
  • Tax preparation fees 
  • Credit report fees
  • Courier fees
  • Document/recording fees 
  • Real estate agent fees
  • Settlement/closing fees 
  • Closing protection fees 

Do closing disclosure forms apply to commercial property? 

In most cases, closing disclosure forms are not required for commercial closings. However, there may be some exceptions; if a commercial property is being used for a family or non-commercial, "consumer" purpose, it may be held to TILA rules, which usually would mandate a closing disclosure. 

Make sure to read your closing disclosure as early as possible 

Reading your closing disclosure is a great way to make sure that all of the costs of your loan are in order-- and that there aren't any unexpected surprises lurking. If possible, see if you can get your closing disclosure more than 3 days before closing in order to review it thoroughly-- and always have someone else, such as a trusted friend, family member, or attorney look it over with you to make sure there are no inconsistencies. 

To learn more about closing disclosures and how to save money during the closing and escrow process, contact the title company experts at Florida Title Company today for a free consultation. 

And, to get a free quote or more information, fill out the form below and an experienced title attorney will get in touch.