> ## Documentation Index
> Fetch the complete documentation index at: https://docs.pylon.mortgage/llms.txt
> Use this file to discover all available pages before exploring further.

# Closing Disclosure for Property Sale

> Provide the final Closing Disclosure for a completed or pending sale to validate net proceeds, payoff of liens, and removal of housing expense.

## What this task is

This task collects the **final Closing Disclosure (CD)** for a property that has been **sold or is in the process of being sold**.
The CD should show:

* The **final sale price** and **closing date**,
* **Payoffs** of existing liens and closing costs, and
* The **net proceeds** distributed to the borrower.

Underwriting uses this document to confirm that a sale **actually occurred (or is closing)** and to validate the amount of **usable proceeds and liability payoffs**.

## When this task is required

This task is required when:

* An owned property is marked as **Pending Sale** or **Sold**, and
* The transaction is being used to:
  * **Eliminate an existing housing expense** from the borrower’s profile, and/or
  * **Generate funds** for **down payment, closing costs, or [reserves](/entity-models/key-concepts/reserves)** on the new loan.

Common examples:

* The borrower sells a departing residence and uses the proceeds for **down payment** on the new home.
* The borrower closes on a sale that **pays off one or more mortgages**, allowing those liabilities to be removed from **DTI calculations**.

## Why this task is required

The Closing Disclosure serves multiple critical purposes:

* Confirms that the sale has **actually closed or is closing with final terms**, rather than being hypothetical.
* Shows **exact payoff amounts** applied to mortgages and other liens, ensuring these liabilities can be **safely removed** from the borrower’s obligations.
* Documents the **net proceeds** available to the borrower, which supports:
  * **Asset sourcing** for the new loan.
  * **Reserve calculations** and cash-to-close verification.

Without the CD, the lender would be relying on **estimates or incomplete information** about:

* Whether liens were fully satisfied,
* The amount of cash the borrower actually received, and
* The precise timing of the sale relative to the new loan.

That uncertainty could lead to **incorrect [DTI](/entity-models/key-concepts/dti)**, [reserves](/entity-models/key-concepts/reserves), or eligibility outcomes.

## Documents needed to resolve this task

To satisfy this task, provide:

* The **final Closing Disclosure** for the completed or pending sale:
  * All pages, **unredacted**, showing seller and buyer information, property address, and settlement agent details.
  * A clear breakdown of **payoffs, closing costs, credits, and net proceeds**.
* If multiple properties have been sold or are being sold, provide the **CD for each relevant transaction** tied to the funds or liability changes supporting the new loan.

These documents allow the underwriter to definitively connect the sale event to **liability removal and asset sourcing** in the borrower’s profile.