North Carolina Closing Statement
What this document covers
The Closing Statement is a crucial document in real estate transactions that represents the final accounting of the sale. It is used for cash sales or transactions involving owner financing. This legally binding document outlines all financial aspects of the sale, including expenses and balances due, verified and signed by both the buyer and seller. Unlike other real estate forms, the Closing Statement provides a detailed summary of all costs and payments involved in the transaction.
Form components explained
- Balance: Final adjusted amounts for both buyer and seller.
- Expenses: A breakdown of all costs incurred during the transaction.
- Title Search: Verification of property ownership and title history.
- Recording Fees: Costs associated with registering the real estate transaction.
- Title Insurance: Details of insurance protecting against title defects.
- Attorney Fees: Charges for legal services rendered during the transaction.
- Commission: Payments to real estate agents involved in the sale.
- Notary Fee: Costs for notarizing the document.
- Adjustments: Adjustments for taxes or special assessments related to the property.
State-specific requirements
For real estate transactions in {state}, the Closing Statement may need to comply with specific local regulations regarding expense disclosures and transaction fees. Ensure you have the correct format and terminology as required by state law.
When to use this document
This form is necessary when finalizing a real estate transaction, particularly in cash sales or when owner financing is involved. Use the Closing Statement to ensure all parties understand the financial aspects of the deal, including total expenses and net proceeds for both the buyer and seller. It protects the interests of both parties by providing a transparent accounting of all costs associated with the transaction.
Intended users of this form
This form is suitable for:
- Homebuyers and sellers involved in real estate transactions.
- Real estate agents facilitating cash sales or owner-financed deals.
- Attorneys representing either party in a real estate transaction.
Completing this form step by step
- Identify the parties involved in the transaction: seller and buyer.
- Specify the property details, including the address and legal description.
- List all expenses under the appropriate sections, including title search and insurance.
- Calculate total expenses and settle the amounts due to/from both parties.
- Both seller and buyer must sign and date the form to validate it.
Notarization requirements for this form
This form must be notarized to be legally valid. US Legal Forms provides secure online notarization powered by Notarize, allowing you to complete the process through a verified video call.
Avoid these common issues
- Failing to include all relevant expenses.
- Incomplete or incorrect signatures from involved parties.
- Not updating adjustments for taxes or additional fees.
Why use this form online
- Convenience of easy access and downloadable format.
- Editability allows customization to fit specific transaction details.
- Reliability due to attorney-drafted templates ensuring legal compliance.
Main things to remember
- The Closing Statement is essential for documenting financial transactions in real estate sales.
- It must be completed accurately to avoid misunderstandings between parties.
- Proper signatures and dates are crucial for the legal validity of the form.
Form popularity
FAQ
Closing costs are the expenses that accrue during a real estate transaction and include title insurance, credit checks, home inspections, appraisal fees, and more. All told, closing costs can total between 2-7% of the final sales price in North Carolina, but sellers are typically only responsible for 1-3%.
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.
On average in North Carolina, standard closing costs range just over 2.2% of a home's purchase price. For example, closing costs on a $200,000 home could add up to $4,400 or more.
The deed and mortgage documents are filed with the county recorder and these become public record. 3feff You can always obtain copies of these from the recorder's office or from a title company. Most documents are digitized in some form, especially those related to the transaction.
Third-Party Fees for Closing Your Loan Around $2.50 per $1,000 of the purchase price of the loan will cover title insurance. $900 and up for an attorney depending on the attorney you choose (ask us for a referral). $100 to the county government to record the legal documents. $475 to $525 for an appraisal.
What is the seller's closing statement, aka settlement statement? The seller's closing statement is an itemized list of fees and credits that shows your net profits as the seller, and summarizes the finances of the entire transaction.
A closing statement, also called a HUD1 or settlement sheet, is a legal form your closing or settlement agent uses to itemize all of the costs you and the seller will have to pay at closing to complete a real estate transaction.
Closing arguments are the opportunity for each party to remind jurors about key evidence presented and to persuade them to adopt an interpretation favorable to their position.
Many other states in the US operate their closings with a title company and no independent attorney is involved. However in North Carolina, this is not the case. North Carolina has a law that all real estate closings must take place with a North Carolina licensed attorney.
