Texas Closing Statement
What this document covers
A Closing Statement is a critical document used in real estate transactions, specifically during cash sales or owner financing scenarios. This form summarizes all financial aspects of the sale, including the buyer's and seller's costs and the distribution of funds. Unlike other real estate forms, the Closing Statement is verified and signed by both parties, ensuring clarity and agreement on all financial terms before the transaction is finalized.
Key parts of this document
- Balance: Summary of funds due to/from both parties.
- Expenses: Detailed listing of costs incurred during the transaction.
- Title Search: Costs associated with verifying property ownership.
- Recording Fees: Expenses related to filing the transaction with local authorities.
- Title Insurance: Protection against potential disputes over property ownership.
- Attorney Fees: Fees paid for legal services during the transaction.
- Survey: Costs for property surveying.
- Commission: Fees for real estate agents involved in the sale.
- Adjustments: Any prorated taxes or assessments that affect the final balance.
- Certification: Signatures from both the seller and buyer affirming the accuracy of the statement.
When to use this document
Use the Closing Statement during real estate transactions to provide a comprehensive overview of all financial elements involved. It is essential when the property is sold for cash or through owner financing, ensuring that both parties are aware of all costs, adjustments, and the final amounts due. This document is typically completed and exchanged at the closing meeting, marking the official transfer of property ownership.
Who needs this form
- Homeowners selling their property directly without a realtor.
- Buyers purchasing property via cash payment or owner financing.
- Real estate professionals facilitating transactions between buyers and sellers.
- Attorneys involved in the closing process for real estate transactions.
How to prepare this document
- Identify the parties: Clearly state the names of the buyer and seller.
- List property details: Specify the property address and legal description.
- Detail financial amounts: Fill in expenses, credits, and any commissions applicable to the transaction.
- Calculate total amounts: Ensure all totals are accurate, including the final balance due to/from each party.
- Obtain signatures: Both the buyer and seller must sign and date the form to certify its accuracy.
Notarization guidance
To make this form legally binding, it must be notarized. Our online notarization service, powered by Notarize, lets you verify and sign documents remotely through an encrypted video session.
Avoid these common issues
- Failure to include all expenses, leading to disputes about final amounts.
- Not obtaining signatures from both parties, which can invalidate the document.
- Leaving out critical property details or misidentifying the property.
- Failing to accurately calculate prorated taxes or adjustments.
Why complete this form online
- Convenience: Downloadable form allows users to complete it at their convenience.
- Editability: Ability to customize sections based on the specific transaction details.
- Reliability: Access to forms drafted by licensed attorneys ensures legality and accuracy.
Form popularity
FAQ
Total closing costs to purchase a $300,000 home could cost anywhere from approximately $6,000 to $12,000 or even more. The funds can't typically be borrowed because that would raise the buyer's loan ratios to a point where they might no longer qualify.
Are Sellers & Buyers at closing together? No. Texas is what's called an escrow state, which means that a trusted third party, like your title company, holds both the money and the signed deed and makes all the necessary arrangements for the transfer.
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.
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.
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.
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.
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.
How much are closing costs in Texas? Though all the taxes, fees, lender charges and insurance add up, generally neither party pays 100% of all the closing costs. Instead, the seller will typically pay between 5% to 10% of the sales price and the buyer will pay between 3% to 4% in closing costs.
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.
