What is a final disclosure that reflects the actual terms of the transaction called?

A final disclosure that reflects the actual terms of the transaction is known as a closing disclosure. This document provides essential details about the closing process, including the final loan terms, costs, and fees that the buyer and seller will be responsible for at the closing meeting. It ensures that all parties have a clear understanding of the financial aspects of the transaction, facilitating transparency and allowing for any last-minute questions or clarifications before the transfer of property occurs.

The closing disclosure is typically provided to the buyer at least three days before the closing date, ensuring they have adequate time to review the figures and ensure accuracy. This is a critical step in the closing process, as it helps prevent misunderstandings and disputes down the line.

In contrast, a closing statement is a general term that may refer to various documents involved in closing but does not specifically denote the comprehensive disclosure mandated by the Consumer Financial Protection Bureau (CFPB). A final financial report and transaction summary are not formal documents recognized in the same way as the closing disclosure and potentially lack the level of detail required for compliance with real estate regulations.