Settlement

Question 1

What is settlement? Closing

Answer 1

Occurs when title to real property transfer from grantor to grantee.

In Hawaii closing occurs when closing documents ( conveyance documents) are delivered/recorded in the Regular System Or when property is REGISTERED.

Question 2

What is a Closing Disclosure?

Aka. The closing statement, the HUD-1 statement or the settlement statement

Answer 2

Provides an accounting costs and prepaid items (debits and credits)

Similar to a balance sheet
Known as TRID. TRUTH IN LENDING RESPA INTEGRATED DISCLOSURE for all federally insured lenders And if the real property is residential (1-4 family dwelling)

Not required for cash transactions but usually still used.

Question 3

Proration

Answer 3

If items are prepaid by seller, the period of proration is from the closing date until the end of the prepaid period.

If items are unpaid by seller, the period of proration is from the beginning of the
Unpaid period until closing.

Question 4

In Hawaii, real property taxes are assessed by October 1st for City and County of Honolulu but paid on a fiscal year

Answer 4

Fiscal year starts on July 1st and usually paid in 2 installments:

The first installment is July1 through Dec. 30th.

The 2nd installment is January thru June 30th.