Definitions
Understanding these key terms will help you get the most out of this guide.
Closing Confirmation
The closing confirmation is the point at which the builder can commit to an exact delivery date for your new home. This happens approximately 35 to 60 days before your confirmed possession date, once construction has reached a stage where weather and other factors are unlikely to affect completion. Until that confirmation, many factors can still influence the schedule.
The closing confirmation marks the beginning of the final stretch before ownership transfers. Three key milestones remain between it and the start of your warranty period: the Welcome Home Orientation, the Closing Appointment, and the Initial Warranty Appointment.
Possession Date
The possession date is the day you take ownership of your new home and gain the right to occupy it. The builder confirms an exact delivery date roughly 35 to 60 days before this confirmed possession date.
Many closing tasks are timed relative to possession: utilities should be transferred into your name as of the date of closing, and the condition of curbs, sidewalks, and streets is documented at the time you take ownership. Keys are delivered only after documents are finalized and funding is confirmed.
Pre-Closing Call
The pre-closing call takes place about a week before closing. Your Sales Specialist contacts you to review details and assist with any questions. If they cannot answer a question directly, they will research the issue or help you reach someone who can.
The goal of the pre-closing call is to ensure the steps in your closing progress smoothly and without last-minute surprises.
Welcome Home Orientation
The Welcome Home Orientation is a meeting held at your new home, typically lasting 1.5 to 2 hours. During it, the builder reviews work completed since the New Home Presentation, documents any remaining items and expected scheduling, demonstrates how the home operates, and reviews key points about maintenance and limited warranty coverage.
At the orientation you also meet a Warranty Service Representative who reviews the use, care, and maintenance of many items in the home — from the water heater and furnace to the shower glass. You confirm manufacturer literature and warranty registration forms, discuss planned warranty visits and reporting procedures, and confirm your Initial Warranty Appointment. In communities where the builder is the Developer, the orientation also includes a Landscape Walk.
New Home Presentation
The New Home Presentation is a walkthrough that takes place before the Welcome Home Orientation, during which items needing attention are noted. The construction team is responsible for resolving these items, most of which can be completed before move-in.
When parts must be ordered or specialty trades are needed, items are typically resolved within 30 days unless other scheduling is communicated. Any items still outstanding at your Welcome Home Orientation are documented on the meeting agenda.
Initial Warranty Appointment
The Initial Warranty Appointment is one of three key milestones — alongside the Welcome Home Orientation and the Closing Appointment — that remain between your closing confirmation and the start of your warranty period.
It is scheduled alongside your New Home Presentation, Welcome Home Orientation, and Closing, and is confirmed during the Welcome Home Orientation.
Warranty Service Representative
The Warranty Service Representative is the person you meet at your Welcome Home Orientation who reviews the use, care, and maintenance of many items in your home — from the water heater and furnace to the shower glass.
This representative also helps you understand planned warranty visits and the procedures for reporting warranty items after you move in.
Closing Appointment
The closing appointment is the meeting at which ownership of your new home is transferred to you. It takes place at the builder's corporate office, typically lasts about one hour, and is available Monday through Friday between 10:00 a.m. and 3:00 p.m. Attendees include the closing agent, the Purchasers, and a real estate agent if applicable.
At the appointment you sign final documents, make your final payment, and — if all details are finalized — receive the keys to your new home. You should arrive having arranged homeowner insurance, transferred utilities, confirmed your financing with your lender, and obtained certified or wired funds for the final number.
Closing Agent
The closing agent is the individual who conducts your closing appointment. They are listed among the attendees at closing, alongside the Purchasers and, if applicable, a real estate agent.
The closing agent oversees the signing of final documents and the completion of the closing process.
Closing Disclosure
The Closing Disclosure is the final cost statement for your home purchase, commonly referred to as the "final number." It accounts for customary items prorated to the date of closing — such as prepaid expenses or reserves required by your lender and homeowners association, and prorations of general real property taxes and applicable assessments.
The exact figure becomes available close to the actual closing date because several prorated items depend on the closing date itself. Under the Real Estate Settlement Procedures Act (RESPA), you can review the settlement page listing your closing costs at least three business days before the closing appointment.
Final Number
The "final number" is the everyday name for the Closing Disclosure, the final cost figure you pay at closing. Although a reasonably close estimate can be determined beforehand, the exact amount cannot be calculated until the closing date is known, because the proration of several items depends on that date.
When paying by certified check, the check should be made out to the title company in the amount of the final number.
Proration
Proration is the process of splitting customary recurring costs to the date of closing so each party pays only for their share of the period. Items such as prepaid expenses, lender or HOA reserves, general real property taxes, and applicable assessments are prorated at closing.
Prorations of property taxes and assessments are based on the current year's taxes and assessments or, if those are unavailable, on the prior year's figures. Because proration depends on the closing date, the final cost cannot be fully calculated until that date is known.
Real Estate Settlement Procedures Act (RESPA)
The Real Estate Settlement Procedures Act (RESPA) is a federal law that provides home buyers with a number of protections during the closing process.
Under RESPA, you have the right to review the settlement page listing the costs you will pay at closing at least three business days before the closing appointment, giving you time to understand the final figures in advance.
Settlement Page
The settlement page lists the costs you will be paying at closing. The materials at closing also include a statement of closing costs and adjustments.
Under the Real Estate Settlement Procedures Act (RESPA), you can review this page at least three business days before the closing appointment.
Certified Funds
Certified funds are guaranteed payments, typically a certified check, brought to closing to cover the final number. A certified check should be made out to the title company in the amount of the final number.
Any closing that is not funded with a mortgage must use wired funds; in those cases a certified check will delay the closing. Allow enough time in advance to arrange for and obtain these funds.
Wired Funds
Wired funds are payments transferred electronically rather than by check. You should plan to bring either a wire or certified funds to closing.
Any closing that is not funded with a mortgage must use wired funds — a certified check will delay such a closing. Arrange and transfer funds sufficiently in advance to allow for processing.
Funding
Funding refers to the release and confirmation of the money — loan proceeds and your payment — needed to complete the home purchase. Keys are delivered after documents are finalized and funding confirmation has been received.
The method of funding matters: any closing not funded with a mortgage must use wired funds rather than a certified check, which would otherwise delay the closing.
General Warranty Deed
The general warranty deed is the document that conveys the home and lot to you. It transfers ownership subject only to permitted exceptions.
It is one of the legal documents you receive at closing and should be stored in a safe place, as you will need it for tax purposes and when you refinance or sell your home.
Title Commitment
The title commitment is a standard American Land Title Association (ALTA) owner's title insurance commitment delivered at or before closing. It commits the title insurance company to insure salable title to your home in the amount of the purchase price, subject to the permitted title exceptions described in the purchase agreement.
What you see on the day of closing is the commitment to issue the policy; the title insurance company mails the actual policy in the weeks following closing. Review the title commitment carefully and discuss any questions with your title company.
Title Insurance
Title insurance protects against defects in the ownership history, or title, of your home. An owner's policy insures salable title to you in the amount of the purchase price, while lenders separately require title insurance in the amount of the mortgage to protect themselves in case the title search missed anything.
At closing you receive a commitment to issue the policy; the title insurance company mails the actual policy in the weeks afterward. Keep it in a safe place with your other important papers.
American Land Title Association (ALTA)
The American Land Title Association (ALTA) is a national organization whose standardized forms are widely used in real estate title insurance.
At or before closing you receive a standard ALTA owner's title insurance commitment to insure salable title to your home in the amount of the purchase price.
Title Company
The title company handles the title insurance and much of the paperwork involved in your closing. You can expect correspondence from your title company, and the actual title insurance policy is mailed by the title insurance company in the weeks after closing.
In preparing for closing, your agent forwards evidence of insurance to your lender and the title company, and any certified check is made out to the title company in the amount of the final number. Review the title commitment carefully and discuss any questions with the title company.
Promissory Note
The promissory note is a document from you, payable to the lender, in the principal amount of the loan plus interest. It represents your legal promise to repay the money you borrowed.
One-twelfth of your annual taxes and homeowner's insurance is added to the principal-and-interest payment to determine your total monthly payment. The promissory note is among the documents you should store safely after closing.
Deed of Trust
The deed of trust encumbers your home as security for repayment of the promissory note. In effect, it pledges the property as collateral for the loan.
It is one of the legal closing documents you should keep in a safe place, as you will need it when you refinance or sell your home.
Covenants, Conditions, and Restrictions (CC&Rs)
Covenants, conditions, and restrictions are the recorded rules of your homeowners association that govern how owners may use and maintain their property. You received these — along with the association bylaws and articles of incorporation — when you wrote your purchase agreement, and at closing you sign a disclosure confirming receipt.
The builder recommends reading these documents carefully, as their provisions will be enforced. Access is available from your community HOA and/or metro district.
Association Bylaws
The association bylaws are the governing rules for how the homeowners association operates internally, such as how it is run and managed. They are provided alongside the covenants, conditions, and restrictions and the articles of incorporation.
You received the bylaws when you wrote your purchase agreement and sign a disclosure at closing confirming receipt. Access to these documents is available from your community HOA and/or metro district.
Articles of Incorporation
The articles of incorporation are the document that legally establishes the homeowners association as an organization.
They are provided together with the covenants, conditions, and restrictions and the association bylaws. You received them when you wrote your purchase agreement and confirm receipt by signing a disclosure at closing.
Landscape Walk
The Landscape Walk is part of the Welcome Home Orientation in communities where the builder is the Developer. As the exterior of the home is toured, the builder photographs and inspects the curb, sidewalks, and streets adjoining your property, recording any existing damage or irregularities. Anything documented is established as pre-existing and is not your responsibility to repair.
The walk is required on a per-filing basis depending on local requirements, so your closing may or may not include it. At the walk you review and sign the Landscape Responsibility Agreement, which establishes the condition of these surfaces at the time you take ownership.
Landscape Responsibility Agreement
The Landscape Responsibility Agreement is signed during the Landscape Walk and establishes the condition of the curb, sidewalks, and streets adjoining your property at the time you take ownership. It is required on a per-filing basis depending on the requirements for your area.
After closing, you are responsible for keeping these surfaces in good condition and for any damage caused by your landscaping activities or features you install. Because most damage occurs during post-closing landscaping work, you should provide a copy of the agreement to your landscape contractor before work begins.
Landscape Assurance Deposit
The landscape assurance deposit is held by your homeowners association (HOA) or metropolitan district. Before the deposit is returned, the HOA or district may, at its discretion, inspect the curb, sidewalks, and streets adjoining your property to confirm they are free of damage.
If these surfaces are not maintained, the builder — acting as Declarant for the HOA and Manager for the district — reserves the right to perform necessary repairs. The cost of those repairs may be billed to you or deducted from your landscape assurance deposit.
Declarant
The Declarant is the party that establishes a homeowners association community and holds certain reserved rights within it. The builder acts as Declarant for the HOA.
In that role, the builder reserves the right, at its discretion, to perform necessary repairs to curbs, sidewalks, or streets that are not maintained as required, billing the cost to you or deducting it from your landscape assurance deposit.
Service Plan
A service plan is the document under which a metropolitan district operates. It is approved by El Paso County or the local municipality.
The service plan provides oversight and long-term accountability to residents, defining how the district carries out its responsibilities for funding and maintaining community infrastructure.
Board of Directors
A metropolitan district is run by an elected board of directors. This board governs the district's operations under a service plan approved by El Paso County or the local municipality.
The elected nature of the board provides residents with a measure of representation and accountability in how the district is managed.
Public Infrastructure
Public infrastructure refers to the shared facilities within a new community, such as roads, water and sewer lines, drainage, sidewalks, parks, trails, and open space.
Rather than rolling the full cost of this infrastructure into the price of your home, the metropolitan district spreads it over time through a separate property tax paid by the homeowners who benefit from it.
Evidence of Insurance
Evidence of insurance is documentation proving you have a homeowner's policy in place. Your lender and the title company require this proof, which your insurance agent can prepare and your agent forwards to the lender and title company.
Arrange for this at least three weeks before the expected closing date and confirm your lender has received it. This proof must be provided before the builder can deliver the keys to your new home.
Key Delivery
Key delivery is the handover of the keys to your new home. Keys are delivered only after documents are finalized and funding confirmation has been received, and proof of a homeowner's policy must be provided beforehand.
Because timing is critical, plan deliveries of any kind for two or more days after the closing date, since unexpected delays can prevent the builder from delivering keys on the day of closing. The builder's insurance also prohibits storing items in the home prior to key delivery.