This Closing Statement is for a real estate transaction where the transaction is a cash sale or provides for owner financing. This settlement statement is verified and signed by both the seller and the buyer.
A real estate settlement statement, also commonly known as a closing statement or a HUD-1 statement, is a document that outlines all the financial details and transactions involved in the transfer of real estate property from the seller to the buyer. It's an essential document used by both parties and their respective lenders, real estate agents, and attorneys to ensure transparency and accuracy during the closing process. Here are some key points to consider when understanding a real estate settlement statement: 1. Purpose: The main purpose of a real estate settlement statement is to provide a comprehensive breakdown of all the costs, fees, and payments related to the real estate closing. It serves as a financial blueprint that clarifies the distribution and allocation of funds from the buyer, seller, and any other parties involved. 2. Contents: A typical settlement statement includes various sections and subsections that specify different aspects of the transaction. These sections may include the buyer's and seller's information, the property details, loan information (if applicable), title and escrow details, as well as a detailed breakdown of all the fees and expenses involved in the process. 3. Key components: The settlement statement includes crucial financial components such as the purchase price, loan amount, down payment, earnest money deposit, closing costs, prorated property taxes, homeowner's insurance, loan origination fees, title search fees, recording fees, appraisal fees, and any other applicable charges. 4. Different types: While the standard real estate settlement statement is often referred to as the HUD-1, there are other variations used in different jurisdictions or by different lenders. These could include — but are not limited t— - the Closing Disclosure (CD), the ALTA Settlement Statement, and state-specific documents like the New York State Settlement Statement (Form PTAA88). 5. Legal requirements: Real estate settlement statements must adhere to specific legal requirements and regulations. These may vary from country to country, state to state, or even lender to lender. Compliance with these regulations ensures that all parties involved are protected and that the document is legally enforceable. 6. Review and reconciliation: It's crucial to thoroughly review the settlement statement for accuracy before the closing. Both the buyer and seller, along with their respective agents and attorneys, should carefully review the document, ensuring that all figures match the agreed-upon terms in the purchase agreement. In conclusion, a real estate settlement statement is a comprehensive document that presents all the financial aspects of a real estate transaction, ensuring transparency, accuracy, and legal compliance. It serves as a crucial reference for both buyers and sellers, allowing them to understand and verify the financial details involved in the closing process.
