TRID Disclosure Laws For Real Estate Closings In South Carolina
Are you purchasing or selling a personal residence or a commercial property? For the first time in decades, lending disclosure laws have changed. To understand how these changes will affect you during your next real estate transaction, seek the advice of an experienced real estate closing attorney.
Experienced Real Estate Assistance For South Carolina Clients
Obtaining a loan for a property purchase usually involves a lot of paperwork, a complicated and confusing process for many. The Clemson law firm of Aaron & Aaron has provided skilled legal assistance with all types of real estate transactions to clients throughout South Carolina for more than 30 years. We will help guide you smoothly through your transaction.
Helping You Understand The TILA/RESPA Integrated Disclosure Rule
Late in 2013, the U.S. government passed new laws regarding the disclosures lenders must provide to borrowers. The changes became effective on Oct. 3, 2015.
If you are obtaining a mortgage to purchase a property, your lender is required to provide you with a TILA-RESPA Integrated Disclosure (TRID) form, also referred to as the "Closing Disclosure." For more details about the change, read the box below.
What are all these acronyms, and how do they apply to me? If you purchased property prior to Oct. 3, 2015, you received a settlement statement required by the Real Estate Settlement Procedures Act (RESPA). This statement was commonly referred to as a HUD-1, and it outlined where the cash was coming from and going to. Additionally, you received a Truth-in-Lending (TIL) form, which was required by the Truth in Lending Act (TILA) and includes information about the annual percentage rate (APR) and other aspects of the costs of your loan. The new TILA-RESPA Integrated Disclosure Rule (TRID) form combines aspects of both forms.
What Does The Law Change Mean To You?
The merger of the two forms (the HUD-1 and the TIL) into one (the TRID) is an effort to make the closing process more easily understood by the buyers and sellers and to clearly identify the fees involved in the transaction. While many aspects of your transaction occur behind the scenes and are best handled by your lawyer, you should know how some of the changes can affect you:
The Closing Disclosure must be given to you a set number of days prior to closing — known as the "review period" — so you have an opportunity to review it thoroughly.
You will also receive a "closing estimate" shortly after you initiate the loan process, which will provide fee and cost estimates that are finalized on the Closing Disclosure form.
The review period for the Closing Disclosure must be extended in certain circumstances — such as when a change in the loan interest rate or another material aspect of your loan causes a delay in closing.
If the lender delivers the Closing Disclosure too close to the closing date, the closing must be extended unless the requirements of a waiver are met.
The TRID requirement and an experienced lawyer from Aaron & Aaron will help you avoid unwelcome surprises on closing day.
Skilled Legal Assistance With No Surprises
Whether you are buying or selling a commercial property or residence, numerous aspects must be completed correctly and in timely fashion. Let us handle the details of your purchase or sale so you can spend your time preparing to move or set up your new commercial space.
Contact us online or call us in Clemson at 864-878-3066 or toll free at 864-271-5545 to schedule a free consultation. We provide skilled guidance to sellers and buyers throughout South Carolina and also offer remote closing options.