What Is A Closing Statement Real Estate? (Solved)

A closing statement is simply a summary of the transaction that you will keep for your own records. During the closing process, a number of checks are exchanged, so all of this information can quickly get confusing and overwhelming.


What is a closing statement?

A closing statement, also called a HUD-1 statement or settlement sheet, is a form used in real estate transactions with an itemized list of all the costs to the buyer and seller.

Who provides the closing statement?

Your lender is required by law to give you the standardized Closing Disclosure at least 3 days before closing. This is what is known as the Closing Disclosure 3-day rule.

How do you get a closing statement?

To get a copy of your closing statement of your home purchase in 2006, you should start by contacting the settlement agent for the purchase of the home. Depending on how long they retain their records, they should be able to supply you with a copy of your Settlement Documents.

What is the final closing statement?

A closing statement is a statement that outlines the final details of a real estate transaction. It lists all the costs of the transaction and indicates the ones the seller is paying and the ones the buyer is paying. Another name for a closing statement is a settlement sheet.

What does a closing statement look like in court?

Typical Closing Arguments a summary of the evidence. any reasonable inferences that can be draw from the evidence. an attack on any holes or weaknesses in the other side’s case. a summary of the law for the jury and a reminder to follow it, and.

What is closing statement in escrow?

A closing statement is an accounting, in writing, prepared at the close of escrow which sets forth the charges and credits of your account. When you receive your closing papers, review the closing statement; it is extremely logical and reflects the financial aspects of your transaction.

What is due to seller on closing statement?

The Seller’s Closing Statement, or Settlement Statement, is an itemized list of fees and credits that shows your net profits as the seller, and sums up the finances of the entire transaction. Sellers can expect to pay between 6-10% of the final sale price in commissions and closing costs.

How long does it take to get closing statement?

» The Closing Disclosure will be prepared and given to the borrowers at least three business days before consummation. An additional three-day period is afforded the borrowers to review the loan terms and costs and rescind the loan if anything has changed on their loan terms.

Is closing Disclosure final?

The Closing Disclosure is a final accounting of your loan’s interest rate and fees, mortgage closing costs, your monthly mortgage payment and the grand total of all payments and finance charges. The form is issued at least three days before you sign the mortgage documents.

What is a closing statement for taxes?

The Closing Disclosure is commonly used for this purpose. DO NOT THROW THIS AWAY. This statement functions much like a receipt for the purchase of your home. You will also see that it itemizes all charges agreed upon during negotiations plus other closing expenses.

Is a closing statement the same as a settlement statement?

A settlement statement is also known as a HUD-1 form or a closing statement. Until 2015, when the rules changed, this form was provided twice. First, within three business days of applying for a mortgage loan, the borrower receives one in the mail with the person’s estimated closing costs.

What Is a Closing Statement?

In the financial world, a closing statement is a document that documents the specifics of a financial transaction. A closing statement will be provided by the bank to a purchaser who is financing the purchase, while a closing statement will be provided by the real estate agent who handled the deal to the house seller. Closing statements are required for all loans, albeit the intricacy of these declarations varies.

Key Takeaways

  • Among the information contained in a mortgage closing statement are all of the charges and fees involved with the loan, as well as the total amount and payment schedule. An application for any form of loan is accompanied by a closing statement or credit agreement, which is frequently included with the application itself. In addition to the net amount to be paid to the seller, the seller’s Closing Disclosure is prepared by a settlement agent and details all fees and charges that are to be paid to the seller. Occasionally, a Truth in Lending Disclosure form may be provided in lieu of a Closing Disclosure form for certain types of loans.

Understanding the Closing Statement

After applying for a mortgage and receiving a loan estimate, purchasers should expect to get their loan estimate within three business days. The final Closing Disclosure will be delivered to the buyer prior to the closing. If you are the seller, you will get a Closing Disclosure that is identical to the one above, and it will include your information as well as your rights and duties as a seller.

The Mortgage Closing Statement

It is one of the last processes that a borrower must do before signing on the dotted line and receiving the funds for their mortgage or refinance. In addition to the final Closing Disclosure, there is a loan estimate, which estimates the different fees and other charges that the borrower will be subjected to at the time of closing. The final Closing Disclosure should not differ considerably from the loan estimate provided at the beginning of the process. It is expected that you will get a loan estimate within three days of submitting your loan application.

It comprises a complete description of every fee and charge that the borrower will be forced to pay, as well as the names of the parties to whom the fees and charges will be paid.

For ease of comparison, all of those data will be presented in the final disclosure alongside the initial loan estimate in the final disclosure.


Checking the mortgage closing statement thoroughly is essential for ensuring everything is proper and for identifying any anomalies that may exist.

Other Loan Closing Statements

Almost every other sort of loan is accompanied with a closing statement of its own. This document is sometimes referred to as a settlement sheet or a credit agreement. If you are applying for a revolving credit loan, such as a new credit card or a bank line of credit, the closing details are often given in the credit application, with the borrower’s signature confirming consent to the lending conditions in advance of signing the credit application. Personal loans involving a significant lump sum of money, with or without security, are typically secured by a more sophisticated paperwork.

A HUD-1 Settlement Statement as well as a Truth in Lending Disclosure form would be sent to you in lieu of the HUD-1. A Truth in Lending Disclosure form, but not a HUD-1 Settlement Statement or a Closing Disclosure, may be provided if you are applying for a home equity line of credit (HELOC).


Lending with Honesty Is the Best Policy Your annual percentage rate, as well as other relevant information regarding the cost of borrowing, is provided in the disclosure (APR).

The Seller’s Closing Statement

The final closing paperwork, including the Closing Disclosure, will be delivered to the seller by a settlement agent who is affiliated with the title firm that has been selected to close the transaction. This will include a list of all of the commissions and fees that must be paid, as well as any credits that will be applied in lieu of those payments. The bottom-line figure is the amount of money that the seller will get when the transaction is completed. According to the Consumer Financial Protection Bureau, the seller is required to obtain this declaration.


If you make a profit on the sale of your house, you’ll need a closing statement to document the specifics of the transaction when you pay your taxes in the following year.

Components of a Closing Statement

The closing statement contains information on the costs associated with the purchase or sale of a house. In addition, the form might include information about the property itself. What information is included on your closing statement might vary depending on whether you are the buyer or the seller of the property. As a general rule, closing remarks can comprise the following elements:

  • Specifications of the property. This statement should include basic information about the property, such as its location and date of construction, as well as the type of structure (single-family home, multifamily home, manufactured home, and so on)
  • However, it should not include any financial information. Information about the financial situation. Along with the purchase price of the house, the closing statement should include any deposits paid by the buyer, as well as any seller credits.
  • Amounts are calculated on a percentage basis. A buyer or seller that pays prorated amounts toward property taxes or homeowners association (HOA) fees would have these amounts included on the closing statement as well. Loan charges would also be included on the closing statement. This component of the closing statement would include information pertaining to the loan, such as the points paid, underwriting fees, application costs, and origination fees, among other things. Mortgage insurance costs and prepaid interest would also be included in this calculation. Various loan fees and charges. Any additional loan expenses would be included in a separate part of the loan agreement. That includes appraisal expenses, credit report fees, and research fees. On the closing statement would also be included the following fees: survey fees, inspection fees, and pest inspection fees
  • Escrow and recording fees. Escrow charges, as well as any recording fees required by government organizations to document the transaction, are stated on the closing statement. Commissions are also disclosed on the closing statement. The closing statement would also include how much money was paid in real estate commissions to the buyer’s agent and the seller’s agent, as well as the amount of money paid in real estate commissions to both agents. These expenses are normally covered by the seller out of the profits of the sale
  • Nevertheless,


This same information is also included on the Closing Disclosure, if you are required to obtain one as part of your loan.

Example of Real Estate Closing Statements

The American Land Title Association (ALTA) provides example closing statements for use by both purchasers and sellers in a real estate transaction, according to its website. These two statements appear to be very similar, yet there are some minor changes in the information that is provided in each. The following is an example of how the seller’s closing statement should look like. The buyer’s closing statement, as well as the seller’s closing statement, may both be downloaded on the ALTA website.

How to Read a Settlement Statement: Real Estate Closing Help

In our minds, a world in which every real estate transaction is straightforward, certain, and rewarding is what we are working toward. As a result, we strive to maintain high standards of journalistic integrity in all of our postings. Disclaimer: The information contained in this blog post is intended solely for educational purposes and should not be relied upon as a substitute for professional legal advice. If you have a question regarding your settlement statement, HomeLight always recommends that you contact your own financial advisor for assistance.

Gather your strength and look at it with a new pair of eyes.

In addition, the lengthy paper will disclose an intriguing calculation: how much money you will receive from this transaction at the end of the day, after deducting fees, taxes, and other expenses.

When it comes to commissions and closing charges, sellers should expect to spend between 6 percent and 10 percent of the final sale price, so it’s helpful to know precisely where their money is going. (Photo courtesy of Free-Photos/Pixabay)

What is a settlement statement?

A settlement statement is a detailed list of fees and credits that summarizes the financial aspects of a real estate transaction from beginning to end. It acts as a record of how all of the money has changed hands, line by line, during the course of the transaction. It outlines the cash payable to real estate agents who received commissions from the transaction, as well as the monies owed to local governments for taxes and recording fees, as well as the final costs to the lender. As a seller, you’ll see your net revenues shown in the seller credit column at the bottom of your statement, along with any amounts owed by the buyer.

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Does the seller get a closing statement?

Most of the documentation is signed by buyers at closing, leading some sellers to question if they would even receive a settlement statement. This is one document, however, that is relevant to all parties involved in the transaction as a whole. At the time of closing, both the seller and the buyer will get a copy of the settlement statement to examine.

Who prepares the settlement statement?

This will be done by whoever is assisting the closing, whether it is a title business, an escrow agency, or an attorney representing the buyer or seller in the transaction.

What is the settlement statement called now?

Despite its name, the settlement statement is simply called that: a settlement statement. Different versions of these papers are used in different parts of the country. For real estate transactions, however, a settlement form established by the trade association ALTA (American Land Title Association) is commonly used throughout the country. In order to avoid any misunderstanding, the settlement statement you will receive is not a HUD-1. Closing Disclosures have been in force since October 3, 2015, and have replaced the HUD-1 Settlement Statement and the Truth-in-Lending Statement, thereby consolidating them into an one document.

Is a settlement statement the same as a closing statement?

Yes, a settlement statement and a closing statement are the same thing, albeit the term “settlement” is the more formal phrase that is most commonly used in the real estate market. (Image courtesy of Kelly Sikkema / Unsplash)

What’s the difference between a Closing Disclosure and settlement statement?

In terms of content, the Closing Disclosure is nearly identical to the settlement statement, but it is tailored specifically to the borrower and their expenses. Designed to be compared to the Loan Estimate, which is the initial estimate of fees that a buyer receives when borrowing money, the Closing Disclosure is supplied by the buyer’s lender and is intended to be compared with the Loan Estimate. On the basis of a copy of the expected settlement statement given by the closing agent, most lenders will produce the Closing Disclosure for their clients.

Sellers are often not provided with a copy of the Closing Disclosure document.

The Closing Disclosure is not required in a cash transaction because there is no borrowing of funds; nonetheless, the buyer and seller would still get a settlement statement outlining their expenses and any payments, as well as any other documentation.

What is an ‘excess deposit’ at closing?

The “Excess Deposit” line item on the seller’s settlement statement is one that frequently generates misunderstanding. What is an excess deposit, and who will get the amounts stated on that line if there is an excess deposit made? For the sake of simplicity, the excess deposit line reflects any monies remaining after accounting for real estate agent commission costs from the buyer’s earnest money deposit. Consider the following scenario: a buyer makes a $7,000 earnest money deposit on a $100,000 house.

After that, the seller will get $1,000 in “extra deposit,” which will be refunded to the buyer.

What does the seller’s closing statement look like?

An example of a normal settlement statement is one with a column for the seller’s debits and credits on one side and another with a column for the buyer’s debits and credits on another side, with a description of the charge in the center. We’ll use the ALTA form as an example and break it down line by line in the sections that follow. The following is the source: (American Land and Title Association)

How to read the top of the settlement statement

You’ll see a few input fields at the top of the page (before you get to the section that looks like a spreadsheet) where you may enter information about the transaction’s basic facts, such as the names of the buyer and seller, the address of the property, and the date of the closure. Here’s a breakdown of the text line by line:

  • File No./Escrow No. : (File No./Escrow No. To think of the escrow number as a bank account number, consider the following: it is a string of numbers that is specific to a particular transaction between a buyer and a seller. DateTime:The date and time of the closure, for example, June 15, 2018 at 10 a.m., are specified. Officer/Escrow Officer: This is the name of the officer who will be assisting with the closure. An escrow business or title company office are examples of actual locations where closings take place. Real Estate Address: The address of the property that is being sold. Buyer: The first and last names of the buyer(s)
  • Seller: The first and last names of the seller(s)
  • Lender: The name of the company that is financing the loan for the buyers
  • Lender: The name of the company that is financing the loan for the sellers. Settlement date (also known as closure date): Date of disbursement: When will everyone — including you, the vendor — get compensated for their efforts? Settlement day is normally the next business day, and in most situations, you’ll be able to receive your house sale profit as soon as the ink on the final documents has dried on the paperwork. (Tip: Choose a closure date between Monday and Thursday within local banking hours to get paid as quickly as possible. If you close your business on a Friday, you may have to wait until the following Monday to get money.)
  • Additional dates, as required by the state are as follows: For example, the tax payback date or the recording date (which is used to establish the timer for the property’s ownership)

Debits vs. credits on the closing statement

The settlement statement is arranged in the same way as a traditional budget balancing sheet, with Debits (expenses) and Credits (deposits or increases) to the account as the primary categories. Other formats may include columns labeled “Seller Charge” and “Seller Credit,” which are interchangeable terms that refer to the same item. Let’s have a look at the different spreadsheet components that make up the closing statement.


The first section of the form, called “Financial,” contains information on the price your buyer is paying, followed by a list of things that are deducted from that price.

  • The ultimate sales price of the property, from which everything else will be subtracted
  • Items of personal property include any furniture or other personal property that the customer pays for and that you have agreed to sell
  • Earnest money is included in the deposit. The amount of money that a buyer put down as ” earnest money ” in good faith toward the purchase of your house after you accepted their offer
  • Amount of the loan The amount of money that the lender is lending toward the purchase
  • Existing loan(s) that have been assumed or taken over In accordance with This is only relevant in the event that the buyer is taking over the seller’s existing mortgage
  • Nonetheless, Credit to the Seller Any repair credits or buyer’s closing expenditures that have been agreed upon by the seller
  • Deposit for Exceeding Amount In this case, the buyer’s earnest money deposit will be deducted from the agent commission (any remaining monies will be sent to the settlement agent or straight to the seller)


You may find out how much you could owe in property taxes (school or county taxes) or homeowner association dues for the period leading up to the moment you give over the keys under theProrations/Adjustmentssection. Consider the following scenario: you close on April 15th, and the tax bill for the period January through the end of May is due on June 1st. As a result, upon closing, the seller would be required to pay their taxes for the period January 15 through April 15. The buyer would be responsible for the property taxes linked with the residence from April 16 to June 1, as well as future property taxes related with the home.

  • Taxes on school supplies from (date) to (date) The amount you get will be determined by your closing date, the local school tax schedule, and whether or not your municipality collects school tax. Taxes collected by the county from (date) to (date) The amount will be determined by your closing date as well as the local county tax schedule. According to your closing date and HOA dues payment schedule, your HOA dues will be collected from (date) to (date). Seller Credit is any money owed to you by the buyer for taxes or payments that you have already made.

“Loan Charges to (lender co.)”

The next subhead, “Loan Charges,” provides specifics on the fees and charges levied by the buyer’s mortgage lender.

You, as the seller, may have agreed to bear part or all of the costs associated with the transaction. Everything is dependent on the terms of the agreement you reached with the buyer during the closing process.

  • Points Mortgage “points” are additional costs that must be paid at the time of closing if the buyer “bought down” their interest rate with a lump sum payment in advance. Purchaser’s Application FeeThis fee is charged to the buyer in order to process his or her loan application. Origination FeeThis fee is charged to the buyer in exchange for drafting and analyzing the loan application. Underwriting feeThis cost is charged to the buyer in order to complete the loan. MIP (Monetary Insurance Premium) When a buyer uses a conventional loan and puts less than 20 percent down on a property, mortgage insurance will be levied to the buyer. Prepaid InterestThe buyer is responsible for the daily interest that has accumulated between the closing date and the date of the buyer’s first monthly mortgage payment
  • This amount is payable at closing.

Other Fees and Charges for the Loan:

  • Expenses incurred by the lender in connection with a house evaluation (which are typically borne by the buyer)
  • Buyer’s Credit Report FeeThis fee is charged for getting the buyer’s credit report (typically reimbursed by the buyer or the lender in some situations)
  • Flood Determination FeeThis fee is charged to the buyer in order to receive a government-issued document indicating if the property is located in a flood zone. Flood Monitoring FeeThis fee is charged to the buyer in exchange for maintaining track of the flood condition of a property. Tax Monitoring FeePaid to the tax service provider in order for the lender to be notified if the new owner falls behind on his or her property taxes. Tax Status Research FeeThis fee is charged to the agency in order for them to check on and report any late tax payments to the lender.


In order to consolidate the costs of their mortgage principle and interest, property taxes, and mortgage insurance into a single payment, the buyer establishes an impound (or escrow) account at the time of closing. Some payments, such as homeowners insurance premiums or county taxes, may be required to be paid in advance by the buyer at the time of closing.

  • Homeowners insurance for _months at a cost of $_/month The frequency at which homeowners insurance premiums are due, as well as the amount owing
  • Mortgage insurance for _months at a cost of $ _/month The frequency at which mortgage insurance premiums are due, as well as the amount owed
  • The city/town taxes are per month at the rate of $ per month. The regularity at which city/town taxes are due, as well as the amount of money owed
  • County taxes are per month at a rate of $ per month. The regularity at which county taxes are due, as well as the amount of money owed
  • School taxes are _/mo at a cost of $ _/mo. The regularity with which school taxes are due, as well as the amount of money payable
  • Adjustment of the aggregate To prevent the buyer’s lender from collecting more money from the buyer than is permitted by RESPA, a mathematical formula is used (the Real Estate Settlement and Procedures Act). In addition, they are not permitted to retain more than 16% of the new homeowner’s property tax and insurance payments.

“Title Charges and Escrow/Settlement Charges”

“Title Charges Escrow” or “Settlement Charges” are all terms used to refer to costs levied by title or escrow businesses for services such as notarizing signatures or notarizing documents.

  • Obtaining Owner’s Title Insurance ($ amount)Provides insurance coverage to the new buyer in the event that unknown issues with the title arise after the closing
  • Obtaining Owner’s Policy Endorsement(s)Tailors an owner’s policy to the specific transaction
  • Obtaining Owner’s Policy Exemption(s)Provides insurance coverage to the new buyer in the event that unknown issues with the title arise after the closing
  • In the event that unexpected concerns with the title arise after the loan is closed, the lender will be protected by a loan policy of title insurance (in the amount specified). Lender’s Title Insurance Policy Endorsements (if any)Tailors the lender’s title insurance policy to the specific transaction Search for a title The cost of doing a public records search for the property being sold
  • Binder for Insurance A certificate of temporary homeowners insurance, valid until a permanent policy is granted
  • Fees for escrow and settlement Expenses associated with arranging the settlement and distributing monies to the proper parties. a fee paid to a licensed notary public in exchange for witnessing document signatures Notary or document signing fees that are not included in the base price.


Commissions paid to real estate agents often range from 5 percent to 6 percent of the total sale price under the “Commission” part. Typically, commission payments are borne by the seller, however the entire commission cut will be shared between the buyer’s agency and the listing agent in the case of a tie.

  • In addition to the real estate commissions owed to the listing agent (who is representing the seller), there is also the buyer’s agent’s commission owed to them. Any other commissions that may be owing

“Government Recording and Transfer Charges”

Government recording and transfer costs are fees collected by the county, state, or municipality in exchange for documenting the new owner’s deed and mortgages with the appropriate authorities.

  • Deed Recording Fees (Deed)Fees charged for the legal recording of a new deed
  • The cost of lawfully recording a new mortgage or a new deed of trust is referred to as recording fees. if there are any more recording costs owed, they will be added to the total amount. Transfer Tax is a tax levied by municipal and state governments when a property is transferred. Transfer Tax is a tax levied on the transfer of property. It is possible that several transfer taxes are owed, as indicated by the second line
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The likelihood is that when you sell your home, it will not be totally paid off, and you will still owe money on the mortgage loan. You will use the proceeds from the sale of your house to pay down the balance of your current mortgage. The “payoff” part of the seller’s closing statement includes a breakdown of those sums, as well as any fees or charges that may have been incurred. Payoff Lender Co. is the lender.

  • Amount of the debt that remains outstanding after deducting interest and other fees
  • Interest on Loan Repayment ($ amount each day) Any interest that has accrued up to the day you pay off the debt
  • Expenses involved with paying off the loan and being freed from your present mortgage, such as additional payoff costs, conveyance fees, recording fees, and wire transfer fees.


Finally, “Miscellaneous” refers to any residual transaction fees and charges that may have been incurred.

  • Pest Inspection FeeThe fee for a pest inspection before closing is distinct from the house inspection and examines for indicators of a termite infestation, among other things. Fee for Survey Participation Cost of drawing of the property to be sold, provided by a professional surveyor The cost of homeowner’s insurance Proof of insurance will be required by the lender. Fee for a home inspection Fee paid to the home inspector for completing a visual assessment of the home in order to check for severe problems
  • The cost of a home warranty Covers the repair or replacement of large appliances for a period of time generally up to a year
  • HOA dues are an ongoing expense. Fees owing to the homeowners’ association
  • Fee for transfer to Management Company fees connected with transferring a homeowner’s association membership from one owner to another Disclosure of Particularly Dangerous Situations Obtaining a hazard disclosure document will cost money. Payment for Utilities utility bills that have not been paid
  • Assessments If your homeowners’ association imposes a yearly property assessment, it may be necessary to pay it all at once in a single amount. Taxes levied against schools Usually depending on the value of the property
  • Taxes levied by municipalities whether there are any additional taxes payable to the city, such as county taxes or county property taxes There may be extra taxes due to the county. Expenses for buyer’s counsel In the case of any legal services undertaken on the buyer’s behalf
  • Fees for the seller’s attorney In the event that any legal services are rendered on the seller’s behalf


An overview of the money that you owe (“Due from Seller”) as well as the money that is heading your way (“Due to Seller”) may be seen at the conclusion of the settlement statement (see below).


“Totals” displays your credit minus your debit column – and, ideally, you’re still in the black at this point! Selling at a loss would be extremely unusual in the present market, given that just 2.6 percent of all mortgage homes had negative equity as of the first quarter of 2021. According to a research we did in 2021, it costs an average of $31,000 to sell a property in that year. If your sale price is high enough, it should cover everything, including your closing expenses and mortgage payoff, and leave you with a handsome money to put in your bank account.

  • Settlement Statements specified by the American Land and Title Association (ALTA) for title insurance and settlement businesses
  • CoreLogic’s Homeowner Equity Insights Report (first quarter of 2021)
  • Questions and Answers on TILA-RESPA Integrated Disclosures from the Consumer Financial Protection Bureau (updated in 2021). In accordance with HomeLight 2021 study, what is the average cost of selling a home?

Rawpixel/Pixabay is the source of the header image.

What is the Seller’s Closing Statement: A Breakdown of Closing Documents For Seller

Hooray! You’ve found a potential buyer for your house. It has been a few weeks since you signed the purchase agreement and received the earnest money deposit. All that’s left is for us to complete the transaction. Additionally, it is at this point — when you can’t bear the notion of holding another piece of paper — that the Seller’s Closing Statement is sent to you. What documents are required for the seller’s closing? As a homeowner, you are well aware that a mortgage transaction entails a large number of calculations.

What appears to be a slew of dollars and debits is actually an exciting calculation – how much money you’ll make once all of the fees and taxes are deducted.

This is your chance to double-check that there aren’t any thousand-dollar charges stated that shouldn’t be there in the first place. That is why it is critical to carefully analyze the closing paperwork for the seller.

What is the seller’s closing/settlement statement?

The Seller’s Closing Statement, also known as the Settlement Statement, is an itemized summary of fees and credits that reveals your net earnings as the seller and totals the finances of the entire transaction. It is also known as the Settlement Statement in some states. This is one of a number of closing paperwork that the seller will get. This document contains all of the pertinent information, including the purchase price, loan amounts, school taxes, and other pertinent information. Expect to pay a commission and closing charges of between 6-10 percent of the total transaction price, depending on the type of property being sold.

Closing remarks may appear to be difficult to understand at first glance, but they are actually rather straightforward.

In this way, both the buyer and the seller will have a better understanding of how the final expenses were determined and why each of you is responsible for particular fees.

Sellers may save hundreds of dollars in agency commissions by using UpNest!

Other Closing Documents for Seller

There is no standardized “closing statement” form that sellers can use from one state to another in the United States. However, the seller’s settlement form, developed by the American Land Title Association (ALTA), is frequently used in real estate transactions and contains a list of the most important phrases you’ll read on your final settlement statement. In addition to the “Closing Disclosure” form, the settlement statement may also be used in conjunction with the “Closing Disclosure.” This is one of the most usual closing paperwork for a seller to receive.

Other parties who may be in possession of copies of the settlement paperwork include your real estate agent and the financial institution that is holding the loan for the purchase of the property.

Closing Disclosure Form

Since the subprime mortgage crisis of the early 2000s, the Consumer Financial Protection Bureau has mandated that buyers receive the Closing Disclosure no later than three days before the closing date of the transaction. It outlines loan expenses, as well as additional fees and information that is relevant to the borrower, among other things. Whenever you, as a seller, volunteer to pay any of the buyer’s expenses associated with getting a loan, you will almost certainly receive a copy of the Closing Disclosure, which explains the lender’s fees and charges.

It should only be seen to the buyer until an agreement to release information is signed by both parties. Consult with a lender who can assist you in comprehending your closing disclosure. This is a critical piece of closing documentation for the seller.

What fees would a seller pay?

Whatever balance you owe on your mortgage is payable at the time of the closing. From the seller’s standpoint, this is the first and most important element to consider. Additionally, buyers and sellers may be responsible for their respective portions of the commissions charged by real estate brokers. This information would be included in the seller’s disclosure statement. You may also be required to pay a prorated amount of your property taxes or homeowners insurance premiums for the time period during which you are still residing in the house.

Seller Concessions

Then there are seller concessions, which are frequently agreed upon throughout the course of a negotiation between the buyer and the seller. Paying for all or a portion of the title insurance, the cost of the appraisal, or prepaid interest points can sometimes assist you in closing the sale more quickly and securing a buyer’s commitment. Buyers will occasionally take advantage of seller concessions in order to reduce the amount of money they must bring to the closing table and to roll their own closing expenses into the loan and amortize them over the life of the loan.

The amount of money a seller can contribute toward these charges may be limited depending on the amount of money a buyer puts down and the type of loan they’re applying for.

Save tens of thousands of dollars.

Inspection Repairs

If any repairs are required on the property, you may be required to pay. Depending on the type of financing a buyer obtains, it may be necessary for the buyer to make repairs before the property may be sold. You and the buyer may have reached a similar arrangement in the purchase agreement for repairs that are discovered during the inspection process. Working with a Realtor who has a sixth instinct about settlement snags will help you avoid problems. You will be required to sign a settlement statement, which will be written by one of three parties: an attorney, a title business or an escrow firm.

Four Types of Settlement Statements

Because settlement statements are intended for use by agents and brokers on both ends of the transaction, four different types of closing paperwork are delivered to the seller. However, it is feasible to have a Buyer’s and Seller’s statement that is mixed.

  • Combined Settlement Statement– The Combined Settlement Statement collects all of the transactions that are relevant to both the buyer and the seller in one place. Settlement Statement Cash — This version is used for real estate transactions involving liquid cash, such as property sales. Purchaser Settlement Statements – This is the version of the settlement statement that is only sent to the buyer, and it contains only information that is relevant to the buyer’s side of the transaction. Seller’s Closing Statement — This document gives a detailed summary of all transactions and fees, as well as how they affect the amount of money the seller will get.

Seller’s Net Sheet

You may receive a document early in the process of selling your property that looks and feels exactly like the closing statement – but what you’re actually looking at is the seller’s net sheet. A net sheet is a document that may be presented to the seller at any point throughout the selling process to provide them an estimate of how much money they can anticipate to make. The net sheet provided by the vendor is not an official document. An organizing worksheet that your realtor completes to estimate how much money you’ll receive from your property sale after expenditures are deducted.

Over the course of your transaction, you may get a seller’s net sheet more than once—most likely at the time of selling your home and again after accepting an offer on your property. It is possible that the figures will alter depending on the final selling price of your home.

Key To Negotiations and Closing Documents for Seller

These projections are essential in negotiating with prospective purchasers. There is no way to evaluate offers if you don’t know which one would provide you with the most money once the transaction is completed. With great accuracy, an experienced agent should be able to predict your net profits. As the transaction progresses, the estimates will be revised accordingly. In other words, when the Closing Statement arrives, your total net proceeds shouldn’t come as a complete surprise! If the figures are significantly different, you’ll know to double-check them.

  1. When it comes time to close on a home sale, the Seller’s Closing Statement is a valuable tool to have on hand.
  2. If you are seeking for assistance with your real estate transaction, UpNesti is a free service that connects house sellers and buyers with the top real estate agents in their area.
  3. Our agents have been thoroughly verified and frequently provide reasonable commission rates that are lower than the industry average to UpNest clients.
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  5. Closing disclosures detail the conditions of the loan you are consenting to take out, ensuring that you are fully aware of what you are getting into when you sign your mortgage contract.
  6. Do you receive your keys back at the end of the day?
  7. This, however, is very dependent on the time.

Questions About Real Estate Closing Statements

A detailed closing statement, also known as a settlement statement, is required by law in every real estate transaction. Closings are an arena for closing real estate deals. Ownership of property shifts from the seller to the buyer. A closing statement must itemize all fees for every party involved in the transaction. Based on the complexity of the transaction, buyers and sellers typically have the most questions about information noted on their real estate closing statements.

What Is A Settlement Statement?

The most common question concerning a real estate closing statement is, “What is it?” This is perhaps the most common inquiry. The Real Estate Settlement Procedures Act, also known as RESPA, is the legislation that started it all. The legislation’s goal is to safeguard customers from unethical mortgage lending practices while also providing them with the ability to choose settlement services that best suit their requirements and preferences.

The settlement statement is only as good as its disclosure. As required by the Real Estate Settlement Procedures Act, the settlement statement must include all costs and credits incurred by all parties engaged in the real estate transaction.

How Much Will Buyer Owe?

The most often asked inquiries regarding the settlement statement are concerning what costs they are accountable for throughout the transaction and how much money they will due after the dust has settled on the transaction. In most cases, the buyer is liable for the fees of the appraisal, credit report, survey, and any other inspections. The buyer is also responsible for any loan fees and charges, as well as any advance payments for PMI or homeowner’s insurance, as well as half of the title fees spent.

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The settlement statement contains a full breakdown of all of these costs.

How Much Will Seller Receive?

Even while sellers frequently have questions regarding the costs they must pay on a closing statement, they are also interested in how much money they will earn as a result of the transaction. It is customary for sellers to pay the commission earned by a real estate agent on the sale of their house, which is calculated as a percentage of the final purchase price of the home. Buyers have occasionally agreed to pay a percentage of the fee, but this must be discussed and agreed upon in advance. The seller is normally responsible for half of the title fees.

Property taxes or other relevant fees that have been paid in advance by the seller will be credited to the buyer’s account at the time of the closing.

Previously, she worked as a project manager for the Sprint Corporation.

The MidAmerica Nazarene University Bachelor of Arts in management and human relations she earned in 2004 was her first step toward a professional career.

Closing Statement – Explained

Return to: Real Estate, Personal Property, and Intellectual Property A closing statement is a document that summarizes the specifics of a transaction; the specifics include the agreement or arguments of both parties engaged in the transaction when the deal is closed. Closing statements are used in a variety of industries and for a variety of transactions. According on the nature of the transaction in question, closing statements might take several forms. A closing statement, which is commonly used in real estate transactions, summarizes the agreement reached between the buyer and seller on the sale and purchase of a house.

It also includes information on the mortgage loan that purchasers obtain to help them fund their purchase.

How Does a Closing Statement Work?

Closing statements are also used in lending agreements; this refers to a document that contains information on the activities that take place in the course of obtaining a loan as well as the agreements made by the parties involved. During a real estate transaction, a closing agent is responsible for preparing the closing statement, which includes a breakdown of how much the property cost both the buyer and the seller. It is critical that closing statements accurately represent the agreement reached by both purchasers and sellers of real estate, as well as the mortgage loan that financed the house purchase in the first place.

It is necessary to have closing statements in order for a real estate transaction or a financing arrangement to be considered complete.

Loan Closing Statement

Closing statement requirements differ from one transaction to the next, and are governed by the kind of transaction. In the majority of transactions, closing agents are present, and these agents compile a list of all conditions, agreements, and fees associated with the deal before the transaction is finalized and closed. Known variously as a credit agreement or settlement sheet when used in loan transactions, a closing statement is a document that provides information on a borrower’s application for credit, the loan terms, and the agreement struck between the lender and the borrower.

Closing statements are required in order for borrowers to finalize their loan agreements.

In the United States, the Consumer Financial Protection Bureau (CFPB) regulates and supervises the loan closing procedures.

Property Closing Statement

In real estate deals, the closing statement is prepared by a real estate closing agent, and this is necessary in order for the transaction to be considered complete. The closing statement contains a thorough description of all of the information involved in the sale and purchase of a real estate property. The specifics include administrative costs, the purchase price, agent commissions, taxes and insurance, the transfer process, and information on the transfer of ownership, among other things.

  • Settlement Statement, Real Estate Settlement Procedure Act (RESPA), HUD-1 Form, Closing Costs, and other related terms and phrases

Closing Statement: Definition and Examples (2021)

After graduating from UCLA School of Law, Rinky S. Parwani began her legal career in Beverly Hills, California, where she worked on high-profile difficult litigation and entertainment law cases. When she relocated to Lake Tahoe, California, her practice became transactional, with a particular emphasis on small company starts, trademarks, real estate resort development, and government law. In the years following her departure from California, she worked as an in-house counsel for a major lending corporation headquartered in Des Moines, Iowa, and as Senior Vice President of Compliance for a Fortune 500 mortgage operation in Dallas, Texas, before establishing Parwani Law, P.A in Tampa, Florida.

  • Besides that, Ms.
  • Also a special magistrate and legal counsel for a number of Florida County Value Adjustment Boards, she has a diverse background in the field.
  • Ms.
  • A Certified Public Accountant (CPA) credential from Iowa (now inactive) and a Certified Management Accountant (CMA) certification (currently inactive) are among the qualifications she has acquired.

Parwani and her firm: the Hillsborough County Bar Association, the American Bar Association, the Tampa Bay Bankruptcy Bar Association, the National Association of Consumer Bankruptcy Attorneys, the American Immigration Lawyers Association, and the National Association of Consumer Bankruptcy Attorneys.


‘Advising Your Client in Foreclosure’ is the title of an essay written by her that appeared in the Stetson Law Review, Volume 41, No.

She is a frequent lecturer at continuing legal education seminars, and she has also conducted bankruptcy courses for the American Bar Association and Amstar Litigation, among other organizations.

In addition, she serves as an adjunct faculty lecturer at the Hillsborough Community College Ybor campus, where she teaches Immigration Law, Bankruptcy Law, and Legal Research and Writing to students enrolled in the paralegal studies program.

What is a closing statement?

Your real estate purchase has just been completed, and you should be pleased with yourself. Your New York real estate lawyer is currently putting together a closing statement. What exactly is a real estate closing statement, and why is it required in the first place?

What is a Real Estate Closing Statement?

You will keep the closing statement for your own records, and it is nothing more than a summary of the transaction. As a result of the large number of checks that are exchanged during the closing process, all of this information can rapidly become confused and overwhelming. This information is organized in a closing statement, which provides you with a clear explanation of the exchanges as well as a copy of the transaction for your records. It might take a long time and be complex to learn about the ins and outs of the real estate market.

are here to assist you throughout the process.

What Does a Closing Statement Contain?

Basic information concerning the transaction should be included in closing statements, such as the following:

  • Identification of the vendor and purchaser
  • And The address of the property
  • The real date of the closure
  • Location of the closing

There are occasions when closings are postponed for a day or two without any notice (sometimes longer). It is critical, however, that the exact closing date be included in the statement because it is the day on which the title was officially transferred. Closings are complicated affairs that include many people; thus, the closing statement should include a list of all of those individuals (along with their duties). You could have observed that the majority of individuals were swapping business cards at the beginning of the close.

The following are some of the most important individuals engaged in a closing:

  • Seller(s) – the individual (or individuals) who is selling the property
  • Purchaser(s) – the individual (or individuals) who is acquiring the property
  • Name and address of the seller’s attorney as well as the name and address of the firm are required. Attorney for the purchaser – The name of the attorney, together with the name and address of the firm
  • The attorney representing the purchaser’s lender — Banks often send their counsel to a closing
  • Brokers — This section contains the names of the brokers who were engaged in the transaction. The title firm is represented by the name of the title closing who works for them.

Additionally, the statement must give an accurate account of the transaction, in addition to all of the other information. The amount that the purchaser is required to pay, as well as any modifications that are made during the closing, are all included. When buyers take out loans to acquire the property, they will get the loan proceeds as a cash payment. In many circumstances, sellers prefer to receive multiple smaller checks rather than a single huge lump sum payment. Every check that was performed to ensure that the numbers added up should be included in the final statement of results.

It may be used as a checklist for the closing as well as a means to keep track of the payments that are due.

Call (888) 373-0163 to speak with one of our knowledgeable attorneys about your legal options.

Closing Disclosure: What It Is And How To Read It

The conditions of your loan are critical if you’re acquiring a new home or refinancing your existing one, so be sure you understand them completely before signing on the dotted line. The reason for this is because, once you sign, you are committed to the terms and conditions that have been offered, regardless of whether or not there are any errors in the documentation at the time of signing. Because of this, it is critical that you thoroughly review the Closing Disclosure that your lender gives you.

In the same way that other mortgage documents may be difficult to study, the Closing Disclosure can be much more so if you aren’t sure what to look for.

You won’t have any reservations when you’re asked to sign the document.

In addition, a knowledgeable real estate agent can assist you in reviewing your Closing Disclosure and pointing out frequent mistakes. If you are buying or selling a house, this is just one of the numerous reasons why you should always work with an experienced real estate agent.

What to Know about a Closing Settlement Statement in Illinois

A closing settlement statement is frequently used to bring a real estate deal to a close. A settlement sheet or a HUD-1 statement are other names for these documents. Each of these papers contains a thorough itemized account of the monies and credits that were exchanged in the transaction, together with a list of the parties who are responsible for and who are obligated to pay the cash and credits. Closing agents are responsible for the preparation and writing of closing statements and settlement sheets.

The mortgage term and cost papers outline the final terms and expenses of a mortgage.

It is critical that you thoroughly review them before signing them.

What to Include in an Illinois Closing Settlement Statement

An Illinois closing settlement statement is used for real estate transactions in which the money is paid in cash or by the seller as owner financing. Closing agents will examine, check, and sign the papers when they have finished drafting the closing statement. Both the buyer and the seller sign as well, indicating their consent of all financial elements of the transaction. A few of the costs that were documented on the closing statement include the following items:

  • Mortgage insurance premiums
  • Deposits of real estate taxes
  • Charges associated with the loan origination procedure
  • Appraisal and mortgage broker fees
  • And inspection costs are all included.

On the page may also be included fees for obtaining the borrower’s credit report, conducting title searches, as well as fees for the services of attorneys, notaries, and closing agents. When closing settlement statements are used in a transaction, buyers and sellers often meet with a professional, such as an attorney, a real estate agent, or a closing agent, to review the statements and ensure that all of the data are correct and appropriate. Even after completing the preparation of the statement, last-minute alterations need the inspection of the document by both the buyer and the seller to ensure its accuracy.

Trust BellShah Law to Help

Get in touch with BellShah Law, LLC right away if you need assistance with your Illinois closing settlement statement. We look forward to hearing from you and assisting you with your real estate needs.

Closing Statement or HUD-1

Homebuyers in Ocala are assisted by attorneys that specialize in real estate transactions. It is possible that you, as a real estate buyer, will be shocked by the amount of documentation that must be completed during a Florida real estate closing. In the past, the closing documentation for residential real estate transactions frequently contained a HUD-1 settlement statement; however, this document has since been superseded by two newer forms in the vast majority of transactions. If you have any issues concerning your closing statement or HUD-1 while purchasing a home, you should speak with one of the experienced Ocala real estate attorneys at the Dean Firm for guidance.

It is a typical government document that was offered to borrowers who had applied for federally insured mortgages on or before October 3, 2015, and who had received a HUD-1 Settlement Statement.

The HUD-1, as well as the Truth in Lending Act (TILA) Disclosure Statement and the Good Faith Estimate, were all supplied to the borrower.

Additionally, a lender may request an old HUD-1 settlement statement as confirmation that a property closed within a specific time period following a short sale that occurred prior to the year 2015.

Borrowers of most closed-end consumer mortgages now receive a Loan Estimate and a Closing Disclosure instead of a HUD-1 closing statement.

This statement is provided by a lender prior to closing and no more than three business days after you have submitted an application for a loan so that you may compare estimates from different lending institutions.

A knowledgeable real estate attorney can assist you in reviewing and comprehending the provisions included in this contract.

With the use of this form, you may compare your final terms and prices to those that were outlined in the initial Loan Estimate.

The document will enumerate the transaction expenditures, as well as all of the credits and debits associated with the transaction, and it will reconcile the money that will be transferred between the seller, the buyer, and third-party suppliers during the transaction.

At the time of the Ocala mortgage closing, the title company will deliver a set of paperwork that must be signed by the parties involved.

Michael E. Dean and Timothy S. Dean, partners of the Dean Law Firm, have decades of combined expertise in representing purchasers and sellers in real estate transactions. Call us at (352) 387-8700 to schedule a no-obligation consultation, or send us an email.

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