The Real Estate Closing, also sometimes called a "settlement", is a meeting of all parties involved in a property transaction during which the transaction is consummated. If there are sellers, this is where they would sign a deed to the buyer. This is where the buyer or owner would sign a note and mortgage, sign truth in lending statements, and sign any other loan documents. HUD-1 settlement statements and lien affidavits are also signed. Payoffs of liens on the property are made. Insurance binders and Termite Inspections are checked. Disbursements are made to lenders, owners, buyers, sellers, realtors, title insurance companies, surveyors, termite inspectors, appraisers, tax collector, and the clerk's office. Funds are collected from lenders and buyers/owners. Documents are sent to the courthouse for recording, and all requirements on the title insurance commitment are checked to see that they have been met. The closing is the consummation and finalization of the transaction.

Closings routinely fall through (though most are rescheduled) or are delayed because one or more of the parties are not able to meet all title commitment requirements. There may be difficulty in getting a prior lender to issue a loan payoff statement. Or perhaps there is difficulty in obtaining the signatures on a quitclaim deed or affidavit. Or a difficulty in meeting some other requirement in the title insurance commitment so that good title or lien priority will be given. Closing Officers undergo a large amount of stress. Buyers/Sellers/Owners, realtors, and loan officers generally push for a transaction to close as soon as possible, but the closing officer may be having difficulty receiving necessary payoffs, documents, or figures. At the closing, the closing officer will usually require the buyer/borrower to present certified funds, cash, or a wire transfer. This is due to Arkansas Law. It is not uncommon for the closing officer to receive some documents the day of or right before the closing. If there is a problem, the closing is either delayed, rescheduled, or in some cases where the problem cannot be corrected, terminated.

As used in this subchapter, unless the context otherwise requires:
(1) "Closing and settlement services" means those services which benefit the parties to the sale, lease, encumbrance, mortgage, or creation of a secured interest in and to real property, and the receipt and disbursement of money in connection with any sale, lease, encumbrance, mortgage, or deed of trust;
(2) "Financial institution" means an entity that is authorized under the laws of this state, another state, or the United States of America to make loans and receive deposits and has its deposits insured by the Federal Deposit Insurance Corporation, the Federal Savings and Loan Insurance Corporation, or the National Credit Union Share Insurance Fund;
(3) "Available for immediate withdrawal as a matter of right" means the following:
(A) For any item or draft, when the item or draft has been submitted for collection and payment received;
(B) For any deposited item or draft, when final settlement has occurred.

(a) No person, firm, partnership, corporation, or other entity that provides closing and settlement services for a real estate transaction shall disburse funds as a part of such services until those funds have been received and are available for immediate withdrawal as a matter of right from the financial institution in which the funds have been deposited. Provided, however, the person, firm, partnership, corporation, or other entity providing closing and settlement services may advance funds, not to exceed five hundred dollars ($500), on behalf of interested parties for the transaction, to pay incidental fees and charges pertaining to the closing and settlement of the transaction.
(b) Any person, firm, partnership, corporation, or other entity who knowingly and willfully violates the provisions of this subchapter shall be guilty of a Class A misdemeanor.
(c) In addition to the criminal penalty imposed hereunder, the prosecuting attorneys of this state shall have the authority to file a petition in chancery court in any county in which a violation of the provisions of this subchapter occurred, for civil enforcement of the provisions of this subchapter by seeking an injunction prohibiting any person, firm, partnership, corporation, or other entity from disbursing funds in violation of this subchapter.