Washington State Real Estate Practice Exam

True or False: The closing disclosure is provided to the buyer only at the closing meeting.

1. True

2. False

3. Only upon request

4. Only if changes have been made

The correct answer is: False

The statement is false because the closing disclosure must be provided to the buyer at least three business days before the closing meeting. This timeframe allows the buyer to review the document thoroughly, ensuring they understand the terms of the transaction, including loan terms, closing costs, and other financial details. Providing the closing disclosure in advance helps prevent any surprises at the closing, promoting transparency in the real estate transaction process. In Washington State, as in other jurisdictions governed by the TRID (TILA-RESPA Integrated Disclosure) rule, the aim is to enhance consumer protection and understanding of the closing costs involved in a mortgage transaction. The requirement for advance delivery supports informed decision-making by the buyer and allows them to ask questions or request clarifications if any items are unclear. As such, this emphasizes the importance of early communication and provides a buffer period for any necessary adjustments or further discussions related to the financial details of the transaction.