Oregon 30-Hour Real Estate Law Practice Test 2025 – Comprehensive All-in-One Guide to Master Your Exam Success!

The document that reconciles the final financial obligations for both the buyer and seller at closing is the closing disclosure. This document provides a detailed account of all the costs associated with the transaction and is designed to ensure that both parties are aware of their financial responsibilities prior to closing. It outlines the loan terms, monthly payments, and any additional fees or charges that may apply, effectively summarizing the monetary aspects agreed upon in the purchase agreement.

The closing disclosure also includes calculations of prorated amounts such as property taxes and homeowners' association dues, so both parties know exactly how much is owed at closing. This transparency helps to avoid misunderstandings about the financial exchange involved in the real estate transaction.

In contrast, a loan estimate serves as a preliminary document to inform the borrower of estimated loan costs and terms before applying for a loan but does not reconcile the final closing obligations. The closing statement, while critical, is often a term used interchangeably with closing disclosure; however, it may not provide the same level of detail required by regulations. Lastly, the purchase agreement outlines the terms of the sale including price, contingencies, and conditions of the sale, but it does not detail the financial obligations at the time of closing.