Maryland Closing Statement
What this document covers
The Closing Statement is a crucial document used in real estate transactions, specifically for cash sales or owner-financed deals. It itemizes the financial details of the sale, ensuring both the buyer and seller agree on the amounts due at closing. This form differs from other real estate forms by providing a comprehensive breakdown of expenses, credits, and the final settlement figures for both parties.
Key parts of this document
- Balance calculations that reflect amounts due to and from each party
- Itemized expenses such as title search fees, recording fees, and attorney fees
- Pro-rations for county and city taxes, along with special assessments
- Final amounts due, including any adjustments to the initial balance
- Certification sections for both the seller and buyer to verify the accuracy of the statement
Common use cases
This Closing Statement should be used whenever a real estate transaction involves a cash sale or owner financing. It is essential during the closing process to document and confirm the financial terms agreed upon by both the buyer and the seller. This form ensures transparency and serves as a record for future reference.
Who should use this form
- Buyers conducting a cash purchase of real estate
- Sellers involved in a cash sale or offering financing directly to the buyer
- Real estate agents or brokers facilitating the transaction
- Attorneys representing either party in the real estate transaction
How to complete this form
- Identify the parties involved in the transaction (buyer and seller).
- Specify the details of the transaction, including the purchase price and any financing terms.
- Fill out the itemized expenses and fees that will be deducted from the sale proceeds.
- Calculate pro-rations for taxes and other adjustments to arrive at the final amounts due.
- Ensure both parties review the form and sign to certify its accuracy.
Does this form need to be notarized?
Notarization is required for this form to take effect. Our online notarization service, powered by Notarize, lets you verify and sign documents remotely through an encrypted video session, available 24/7.
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Make edits, fill in missing information, and update formatting in US Legal Forms—just like you would in MS Word.
Download a copy, print it, send it by email, or mail it via USPS—whatever works best for your next step.
Sign and collect signatures with our SignNow integration. Send to multiple recipients, set reminders, and more. Go Premium to unlock E-Sign.
If this form requires notarization, complete it online through a secure video call—no need to meet a notary in person or wait for an appointment.
We protect your documents and personal data by following strict security and privacy standards.
Mistakes to watch out for
- Failing to include all expenses and fees, leading to discrepancies at closing.
- Not fully engaging both parties in the review process before signing.
- Omitting necessary pro-rations or adjustments that could affect final balances.
- Entering incorrect details about the property, buyer, or seller information.
Benefits of completing this form online
- Convenient access to a legally vetted template drafted by licensed attorneys.
- Edit and personalize the form easily to meet specific transaction requirements.
- Instant download for quick and efficient use, streamlining the closing process.
- Ensured compliance with relevant legal standards and regulations.
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FAQ
Completing Part B of HUD-1Fill in the property location and the name and address for the borrower, seller and lender. The settlement agent, date and location also are needed. Fill in the appropriate lines in sections J and K, which are summaries of the borrower's and seller's transactions, respectively.
The Deed: public record of the ownership of the property It often includes a description of the property and signed by both parties. Deeds are the most important documents in your closing package because they contain the statement that the seller transfers all rights and stakes in the property to the buyer.
- The final costs of a closing statement are often expressed in a document that is called the HUD or the HUD-1 Statement. HUD is an abbreviation for the Housing and Urban Development department part of the federal government that mandates the recording of certain information about real estate transactions.
Double-check the loan amount, loan type, loan term, interest rate, monthly payment amount, whether there is a prepayment penalty, whether you are paying points or receiving credits, and other key details. Compare the Annual Percentage Rate (APR) on the Closing Disclosure to the APR listed on your Loan Estimate.
Some common closing papers you can expect include your completed loan application, mortgage promissory note, deed of trust, loan estimate and closing disclosure, bill of sale, title insurance documents, affidavit of title, escrow statement, tax documents and notice of right to cancel.
A HUD-1 or HUD-1A Settlement Statement is prepared by a creditor or, more typically, by the settlement agent who conducts the closing on the creditor's behalf.
A closing agent prepares the closing statement, which is settlement sheet. It's a comprehensive list of every expense that the buyer and seller must pay to complete the real estate transaction. Fees listed on this sheet include commissions, mortgage insurance, and property tax deposits.
The Mortgage Promissory Note. The Mortgage / Deed of Trust / Security Instrument. The deed (for property transfer). The Closing Disclosure. The initial escrow disclosure statement. The transfer tax declaration (in some states)
