Kovats Real Estate School Practice Test 2025 - Free Real Estate Practice Questions and Study Guide

Question: 1 / 400

In real estate, what is a primary characteristic of a closing disclosure?

It is non-negotiable and cannot be altered

It includes a verbal discussion between parties

It provides a breakdown of the terms and costs associated with a transaction

A closing disclosure is a critical document in the real estate transaction process as it serves to provide a detailed breakdown of the terms and costs associated with the transaction. This document allows both the buyer and seller to understand the financial components involved, including loan details, closing costs, and other relevant fees. The clarity provided by the closing disclosure helps ensure that both parties are fully informed before the finalization of the sale, enhancing transparency and reducing the likelihood of misunderstandings.

Additionally, the closing disclosure must be presented to the buyer at least three days before closing, giving them adequate time to review the details and address any concerns with their lender or real estate professional. This aspect emphasizes its role as an essential document for informed decision-making rather than a mere transactional formality.

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It must be filled out by the buyer only

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