Settlement Statement

A Settlement Statement, also known as a HUD-1 or Closing Statement, is a document used in real estate transactions that itemizes all charges and credits to the buyer and seller. Key features include:

1. Detailed breakdown of all financial aspects of the transaction

2. Lists purchase price, loan amounts, and closing costs

3. Shows prorated items like property taxes and HOA fees

4. Includes fees for services such as appraisals, inspections, and title insurance

5. Displays the final amount due from the buyer or to the seller

This document ensures transparency in real estate transactions, allowing both parties to see exactly where money is going. It’s typically prepared by a closing agent or attorney and is required for most residential real estate transactions. Reviewing the Settlement Statement carefully before closing is crucial to ensure all figures are accurate and agreed upon. While the format may vary slightly depending on the transaction type and location, the core purpose remains the same: to provide a clear financial picture of the real estate deal.