New Jersey Closing Statement
What is this form?
The Closing Statement is a crucial document in real estate transactions involving cash sales or owner financing. This form serves as a verified settlement statement that summarizes the financial aspects of the sale, including expenses, credits, and final balances. It distinguishes itself from other closing documents by providing a comprehensive breakdown of all financial transactions, ensuring that both the seller and buyer have a clear understanding of their respective obligations and receipts.
Form components explained
- Balance: Records the overall financial summary after expenses are deducted.
- Expenses: Details various costs associated with the transaction, such as title search, recording fees, and attorney fees.
- Adjustments: Captures any necessary prorations for taxes or special assessments.
- Certification: Statement affirming the accuracy of the contents, signed by both the seller and buyer.
- Total Due: Summarizes the final amounts owed to or from each party.
Common use cases
This Closing Statement should be utilized whenever a real estate transaction occurs, especially in cases of cash sales or owner-financed purchases. It is essential during the closing process to ensure that all parties are aware of financial terms, to settle any outstanding fees, and to finalize the transaction correctly.
Who should use this form
- Buyers engaged in purchasing real estate with cash or owner financing.
- Sellers who need documentation of the financial aspects of the property sale.
- Real estate agents or attorneys assisting in the transaction.
- Title companies managing the closing process.
Steps to complete this form
- Identify the parties involved, including the seller and buyer details.
- Specify the property being sold, including the address and legal description.
- Document all expenses related to the transaction, such as title searches and attorney fees.
- Calculate the total expenses and adjust for any credits or prorations.
- Obtain signatures from both seller and buyer to certify the statement's accuracy.
Does this form need to be notarized?
This form does not typically require notarization to be legally valid. However, some jurisdictions or document types may still require it. US Legal Forms provides secure online notarization powered by Notarize, available 24/7 for added convenience.
Common mistakes
- Failing to include all relevant expenses, leading to discrepancies in final totals.
- Not obtaining signatures from both parties, which may invalidate the statement.
- Incorrectly calculating prorated taxes and fees, resulting in financial misunderstandings.
Why use this form online
- Convenience of downloading and filling out the form at your own pace.
- Editability allows adjustments to be made quickly without starting over.
- Reliability from using templates drafted by licensed attorneys for legal accuracy.
Form popularity
FAQ
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.
The HUD-1 Settlement Statement is a standard government real estate form that was once used by settlement agents, also called closing agents, to itemize all charges imposed upon a borrower and seller for a real estate transaction. The statement is no longer used, with one exceptionreverse mortgages.
The HUD-1 form is used in purchase transactions, and it includes lines for both borrower charges/fees and seller charges/fees.The HUD-1A is an option, instead of using the HUD-1, for loan transactions that do not include a seller (refinance). The HUD-1 is three pages, while the HUD-1A is only two pages.
As of October 3, 2015, the Closing Disclosure form replaced the HUD-1 form for most real estate transactions. However, if you applied for a mortgage on or before October 3, 2015, you received a HUD-1.
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.
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.
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.
6. Attendance Required Power of Attorney Generally, all of the parties must show up at the closing. This is especially true of the buyers, who must sign all of the mortgage documents.
Sellers do not usually need to be present at a New Jersey closing so long as all costs are paid and documents are signed. Typically, the buyers will sign the final documents at the office of their title company or escrow agent and pick up the keys.
