Adjustments at Closing
At Closing the Purchaser must reimburse the Seller for prepaid expenses.  For example if the Seller has paid the Real Estate taxes for the balance of the year and the closing takes place on July 1 then the Purchaser
has to reimburse the Seller for the prepaid taxes from July 1 - December 31.  At Closing the Seller will receive a credit for these prepaid expenses and the Purchaser will receive credit for the deposit he paid when the signed the contract, the Property Condition Disclosure Statement credit etc.

Escrow  
This is money held in a special account (usually an Attorney’s Trust Account) which insures the happening of an event.  For example at the signing of a contract for purchase of real estate the Purchaser will give a deposit (usually 10%) to the Seller’s Attorney which the Attorney holds in escrow pending the Closing.

Closing
This is where the Purchaser pays the balance
of the money due the Seller and the Seller transfers his/her ownership to the Purchaser

Mortgage Insurance  
Ensures the Purchaser’s Lender that they will have a bona fide lien on the Property.  A Lender will require the Purchaser to purchase Mortgage Insurance for the benefit of the Lender.

Closing Costs  
These are the costs that accompany the purchase of a home.  For example the Purchaser will have to pay the Title Charges (including Title Search and Insurance, Mortgage Tax etc.) and the Mortgage Fees (including application fee, appraisal fee,
credit report, points, bank attorney fee, etc.).

Mortgage  
Is a document filed at the County Clerk’s office which is a lien on the property and is evidence of a loan secured by the real estate.

Closing Statement
An accounting of the purchase price, downpayment, balance, credits and costs associated with your purchase or sale.

Satisfaction (of Mortgage)  
This is a document that is filed with the County Clerk by a Lender and reports that the loan – a prior lien- is paid off.

Deed
Is a document that evidences ownership in real property.  There are different types of deeds.  It is the custom in the greater New York area to use a “Bargain and Sale Deed with Covenants Against Grantor’s Acts”.

Settlement Statement (HUD-1)  
Is a federal reporting form which was developed by the Department of Housing and Urban Development.  It contains all the costs of the purchase or sale of property and is prepared at closing.

Encumbrance
This includes liens, easements, mortgages etc. that affect the title of property

Title Insurance  
This is insurance that a Purchaser buys that will insure that he/she has good title to the property.  This is also called Fee Insurance.

Marketable Title  
Refers to title of Real Property that is free and clear of liens that would prevent the sale of the property.

Title Report  
This is a report that the Title Company provides that lists the current owner(s), liens on the property (including mortgages), reports on the real estate taxes, whether there are any violations of record and whether there is a valid Certificate of Occupancy.