What is the term used for the closing process under RESPA?

The term "Settlement" refers to the closing process under the Real Estate Settlement Procedures Act (RESPA). Settlement is the stage in the real estate transaction where the buyer and seller finalize the terms of the mortgage and the sale. During this process, all necessary documents are signed, and the agreed-upon funds are exchanged. This term is widely used in the industry to describe the culmination of a property's sale, ensuring that both parties fulfill their contractual obligations and that ownership is officially transferred.

RESPA was put in place to help consumers better understand the settlement process and to protect them from abusive practices. By using the term "settlement," RESPA emphasizes the formal and procedural nature of the closing process, reinforcing the importance of compliance with specific disclosures and regulations that facilitate transparency in real estate transactions.

The other terms do not align with industry terminology recognized under RESPA. Finalization, Completion, and Closure lack the specific legal connotation and established use that "Settlement" carries within the context of real estate and mortgage processing.