What is typically included in the legal documents executed during a closing?

Legal documents executed during a closing primarily include loan agreements, which outline the terms and conditions of financing between the borrower and the lender. These agreements detail critical information such as the loan amount, interest rate, repayment terms, and any stipulations related to the loan. This documentation is vital, as it secures the lender's interest in the property and establishes the borrower's obligations, facilitating the disbursement of funds for the purchase of the property.

While property tax forms, insurance policies, and home inspection reports are indeed important aspects of real estate transactions, they do not fall under the category of legal documents executed at closing. Property tax forms may be required to ascertain the tax status of the property, insurance policies provide protection, and home inspection reports assess the property's condition, but these items do not constitute binding agreements like loan agreements do. Thus, the inclusion of loan agreements is essential for understanding the contractual obligations formed at the closing of a real estate transaction.