Which document serves to confirm that a title company will follow the closing instructions provided?

Which document serves to confirm that a title company will follow the closing instructions provided?

• A. Closing Statement
• B. Insured Closing Letter
• C. Title Commitment
• D. Loan Estimate

Answer: (B)

The Insured Closing Letter is the document that confirms a title company will adhere to the closing instructions provided. This letter is important because it assures all parties involved in the transaction that the title company has agreed to the terms and conditions laid out for the closing process. It serves as a guarantee that the title company will perform certain actions, such as disbursing funds appropriately, ensuring all necessary documents are executed, and following the specific instructions from the lender or parties involved in the transaction. This helps to minimize risks associated with the closing process and provides peace of mind that the closing will adhere to the agreed-upon procedures. The other options do not fulfill this function. The Closing Statement details the financial settlement terms between buyer and seller but does not confirm adherence to closing instructions. The Title Commitment outlines the terms under which title insurance will be issued but does not address closing instructions specifically. The Loan Estimate is a form that provides estimates of loan terms and costs but again is focused on lending rather than closing procedure confirmation.

The Insured Closing Letter is the document that confirms a title company will adhere to the closing instructions provided. This letter is important because it assures all parties involved in the transaction that the title company has agreed to the terms and conditions laid out for the closing process.

It serves as a guarantee that the title company will perform certain actions, such as disbursing funds appropriately, ensuring all necessary documents are executed, and following the specific instructions from the lender or parties involved in the transaction. This helps to minimize risks associated with the closing process and provides peace of mind that the closing will adhere to the agreed-upon procedures.

The other options do not fulfill this function. The Closing Statement details the financial settlement terms between buyer and seller but does not confirm adherence to closing instructions. The Title Commitment outlines the terms under which title insurance will be issued but does not address closing instructions specifically. The Loan Estimate is a form that provides estimates of loan terms and costs but again is focused on lending rather than closing procedure confirmation.