In a Texas real estate closing, the term 'funding' refers to:
Correct Answer
C) The lender disbursing the loan proceeds to the title company for the closing
Funding occurs when the lender disburses the loan proceeds to the title company or closing agent. In Texas, possession typically transfers at 'closing and funding,' meaning both the closing documents are signed and the lender has disbursed the funds.
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Related Concepts
Specific performance is a court-ordered remedy that compels the breaching party to fulfill their obligations under the contract rather than simply paying monetary damages. It is an equitable remedy used when monetary damages would be inadequate.
The Statute of Frauds is a legal requirement that certain types of contracts must be in writing and signed to be enforceable. In real estate, all contracts for the sale of land or interests in land must be in writing.
A time is of the essence clause in a contract means that all deadlines and dates specified in the agreement are strictly enforceable, and failure to meet them constitutes a material breach.
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