Final answer:
The document that consolidates the former HUD-1 Settlement Statement and the Truth in Lending Disclosure and must be submitted to a buyer three days before closing is the Closing Disclosure (C).
Step-by-step explanation:
The Closing Disclosure, marked as C, is a comprehensive document in real estate transactions that consolidates essential financial details for both the buyer and seller. It outlines the final loan terms and closing costs, providing a clear breakdown of fees, expenses, and other crucial financial elements involved in the transaction. This disclosure ensures transparency, allowing buyers to review the costs before closing, empowering them to compare the final terms with the initial loan estimate.
Its delivery three days before closing is mandated by the Truth in Lending Act (TILA-RESPA Integrated Disclosure rule), enabling buyers to thoroughly review the details and ask any necessary questions or seek clarifications before finalizing the deal.
The correct answer is C - Closing Disclosure.