Closing Statement, also known as a HUD-1 form
Closing Statement, also known as a HUD-1 form
A Closing Statement, also known as a HUD-1 form, is a standardized document used in real estate transactions to itemize all charges imposed upon a borrower and seller in a real estate transaction. Key features include:
1. Provides a complete breakdown of all costs associated with the sale
2. Details the disbursement of funds between buyer and seller
3. Includes information on:
– Purchase price
– Loan amount
– Closing costs
– Property taxes
– Real estate commissions
– Prorated expenses
4. Used for both purchases and refinances
5. Typically prepared by a settlement agent or attorney
This form ensures transparency in real estate transactions by clearly showing all financial aspects of the deal. It allows both parties to review and understand all costs involved before finalizing the transaction. While the HUD-1 form was replaced by the Closing Disclosure for most transactions after 2015, it’s still used in some cases, particularly for reverse mortgages and home equity lines of credit.