What is the purpose of the "Closing Disclosure" in real estate transactions?

The "Closing Disclosure" serves a crucial function in real estate transactions by outlining closing costs and financial details related to the loan and the purchase of the property. This document provides transparency to both buyers and sellers about the costs they will incur during the closing process. It typically includes a detailed account of various expenses such as loan fees, taxes, insurance, and other charges associated with the sale.

By delivering this information at least three days before the closing, the Closing Disclosure allows the parties involved to review and understand the financial implications of the transaction, ensuring that there are no surprises at the closing table. This helps in fostering trust between the parties and helps buyers to prepare for their financial responsibilities.

Other options do not accurately capture the primary function of the Closing Disclosure. For instance, while listing agents involved in the process is important, it is not the core role of the Closing Disclosure. Similarly, establishing the agreement of sale is typically accomplished through other documents, such as the purchase agreement, and verifying a buyer's financial background falls under the purview of loan underwriting and pre-approval processes. Thus, option B stands out as the most relevant and accurate in the context of this question.