Closings glossary
Clear to close
The point at which lender conditions are satisfied and the transaction can be scheduled and funded. Title clearance and payoff figures usually have to land before a lender issues it.
What does clear to close mean?
Quick Answer
The full definition
The point at which lender conditions are satisfied and the transaction can be scheduled and funded. Title clearance and payoff figures usually have to land before a lender issues it.
Also called: CTC.
Which related terms should you know?
These are the terms that come up alongside clear to close in the same file.
- Curative work
- The clearance steps taken between commitment and closing to remove title requirements: releases, satisfactions, corrective deeds, estate paperwork and payoffs of stale liens.
- Payoff letter
- A lender's statement of the amount required to satisfy and release a mortgage on a specific date, with a daily interest figure for any later date.
- Title commitment
- The document offering to insure title on stated terms, with Schedule A facts and Schedule B requirements and exceptions. It is the working agenda between contract and closing.
- Closing statement
- The itemized accounting of every credit, debit and disbursement at a closing. Commercial deals use a HUD-1 or ALTA settlement statement; consumer mortgage closings pair it with the Closing Disclosure.
- Escrow (at closing)
- Funds or documents held by a neutral party until stated conditions are satisfied. At a New York closing it usually means a holdback from proceeds under a written escrow agreement.
Where does clear to close come up in a New York City closing?
A Staten Island file goes clear to close on a Tuesday, once the satisfaction of an old home equity line is recorded and the payoff letter is updated.
What else should you read before closing?
Questions this raises
- What happens after the closing table?Recording, recorded copies, the final policy, satisfactions and post-closing lender conditions. The New York closing tail and the documents to keep...
- Who is in the room at a NYC closing?Buyer, seller, both attorneys, the title closer and a lender representative. Who attends a New York City closing, what each one does, and who can s...
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