North Carolina Closing Statement
Definition and meaning
The North Carolina Closing Statement is a document that outlines the financial details involved in a real estate transaction. This form itemizes the sales price, down payments, and various expenses associated with closing a property deal. It serves as a transparent record that helps both buyers and sellers understand their financial obligations during the closing process.
Key components of the form
The North Carolina Closing Statement includes several essential components:
- Sales Price: The agreed amount for the property.
- Down-payment: The initial amount paid by the buyer.
- Expenses: Various fees such as title insurance, attorney fees, and recording fees.
- Adjustments: Pro-ration of taxes and other assessments that impact the total financial outcome for both parties.
These components ensure all parties are informed about the financial details of the transaction.
How to complete a form
To complete the North Carolina Closing Statement, follow these steps:
- Fill in the seller's and buyer's information, including names and addresses.
- Record the sales price in the designated sections for both the buyer and seller.
- Input the down payment amounts for both parties.
- List all relevant expenses in the appropriate sections, ensuring accuracy.
- Calculate total expenses and any adjustments needed for taxes.
- Sign and date the form to certify that the information is correct.
Always double-check for accuracy before finalizing the document.
Who should use this form
This form is intended for anyone involved in a real estate transaction in North Carolina. Specifically, it is used by:
- Homebuyers purchasing property.
- Sellers finalizing the sale of their property.
- Real estate agents assisting clients in completing the transaction.
Using this form ensures that all financial aspects are documented and agreed upon by both buyer and seller.
Common mistakes to avoid when using this form
When completing the North Carolina Closing Statement, be aware of these common pitfalls:
- Failing to include all applicable expenses, which could lead to discrepancies.
- Not verifying the accuracy of the sales price and down payment amounts.
- Omitting signatures, which can invalidate the document.
- Not keeping a copy for personal records.
Avoiding these mistakes can help ensure a smooth closing process.
What documents you may need alongside this one
When using the North Carolina Closing Statement, you may need the following documents:
- Sales Contract: To reference terms agreed upon by buyer and seller.
- Title Documents: To verify ownership and any liens against the property.
- Identification: Government-issued ID for both parties to confirm identities.
- Proof of Down Payment: Bank statements or checks demonstrating the source of the down payment.
Having these documents ready will facilitate the closing process.
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.