What does the term "settlement service" refer to?

The term "settlement service" refers to a service provided in connection with a prospective or actual settlement. This encompasses various activities involved in the closing process of a real estate transaction, including but not limited to services related to title searches, escrow arrangements, loan document preparation, and the disbursement of funds. These services are crucial to ensure that the transaction is completed smoothly and all legal and financial obligations are met between the buyer, seller, and financial institutions involved.

Understanding this term is vital for anyone involved in real estate, as settlement services are integral to the transfer of property ownership. They help ensure that all parties fulfill their responsibilities and that the transaction complies with applicable laws and regulations. Recognizing the importance of these services can aid in facilitating a successful closing and reducing the risk of disputes after the transaction is complete.