Closing Statement

A document commonly used in real estate transactions, detailing the fees, commissions, insurance, etc. that must be transacted for a successful transfer of ownership to take place. This document is prepared by a closing agent and is also known as a "settlement sheet".

Investopedia Says:
This legal document sets out the exact amount of money needed to close a real estate transaction and effect the transfer of title and ownership from the seller to the buyer. It includes all the costs involved in the sale, such as mortgage insurance and property tax deposits.

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Document listing all charges payable by either buyer or seller at a real estate closing, under the Real Estate Settlement Procedures Act. The borrower has a right to request a copy of the statement one day before the property transfer takes place. This statement lists real estate commissions, lender's fees and discount points charged, title insurance costs, and the amount the lender is willing to hold in escrow for taxes and insurance.

An accounting of funds from a real estate sale, made to both the seller and the buyer separately. Most states require the Broker to furnish accurate closing statements to all parties to the transaction.
Example: Table 11.

Table 11 Closing Statement

Seller Buyer

Debit Credit Debit Credit

Real property $400,000 $400,000

Prepaid taxes 6,700 6,700

Sales commission $24,000

Survey fee 750

Cash paid by buyer to close $407,450

Cash received by seller 382,700

_______ _______ _______ _______

Totals $406,700 $406,700 $407,450 $407,450

_______ _______ _______ _______