This Closing Statement is for a real estate transaction where the transaction is a cash sale or provides for owner financing. This settlement statement is verified and signed by both the seller and the buyer.
A real estate closing statement is a legal document that outlines the details and financial transactions related to the purchase or sale of a property. It provides a summary of all costs, fees, and payments incurred throughout the real estate transaction, ensuring transparency and accountability for both the buyer and seller. Here is a detailed description of a sample real estate closing statement with examples: 1. Introduction: A real estate closing statement is typically prepared by the closing agent, such as a title company, attorney, or escrow officer, and is presented during the final stages of a real estate transaction. This document includes various sections detailing the financial aspects of the transaction and ensures a smooth closing process. 2. Parties involved: The closing statement identifies the parties involved in the real estate transaction, including the buyer and seller, their agents, and the closing agent responsible for handling the closing process. It also mentions any lenders or mortgage companies involved in financing. 3. Property details: This section provides detailed information about the property being transferred, such as the address, legal description, and property identification numbers. It ensures that the property being conveyed is accurately identified. 4. Sales price and adjustments: The closing statement lists the agreed-upon sales price of the property. It also includes any adjustments made for prorated expenses, such as property taxes, homeowners' association fees, or rental income. These adjustments ensure that each party is responsible for the appropriate portion of expenses. Example: Sales price — $300,000 Prorated properttakexe— - $1,500 (Seller credits Buyer) 5. Mortgage or financing: If the buyer is obtaining financing, this section includes details about the loan, such as the lender's name, loan amount, interest rate, and closing costs associated with the loan. It discloses any fees or points paid by the buyer or seller. Example: Loan amount — $250,000 Loan originatioFefe— - $4,000 (Buyer pays at closing) 6. Closing costs: The closing statement details all the costs and fees associated with the real estate transaction. These may include title insurance fees, appraisal fees, attorney fees, recording fees, and other miscellaneous costs. It highlights which party is responsible for paying each fee. Example: Title insurance — $2,500 (Buyer pays) AppraisaFefe— - $500 (Buyer pays) 7. Prorated expenses and credits: Prorated expenses, such as property taxes and utilities, are divided between the buyer and seller based on their respective ownership periods. This section shows any adjustments made to account for these expenses and any credits given to either party. Example: Prorated property taxes — $2,000 (Seller credits Buyer) Unpaid utility bills — $300 (Seller pays) 8. Deposits and earnest money: This section lists any deposits or earnest money previously paid by the buyer and credits them towards the purchase price or other expenses. Example: Earnest money deposit — $5,000 (Applied towards purchase price) 9. Balance due: The closing statement calculates the final balance due from the buyer to the seller, considering all adjustments, credits, and prorated expenses. It may also factor in any prepaid amounts, such as prepaid insurance or mortgage interest. Example: Balance due to Seller — $39,800 Different types of sample real estate closing statements can include variations based on the type of property transaction, such as residential home purchase, commercial property sale, or refinancing. However, the fundamental elements remain consistent, focusing on providing a comprehensive breakdown of financial obligations and ensuring a fair and transparent closing process.
