What is a closing statement?

The closing statement summarizes all the financial aspects of the real estate transaction

It shows:

  • all amounts due to the seller, including the contract price, and additional amounts due from the buyer such as taxes and prorated expenses
  • all amounts due from the seller such as the brokerage fee, prorations, taxes and prorated expenses
  • all amounts due from the buyer, including the contract price and additional amounts due to the seller such as taxes and prorated expenses
  • all amounts due to the buyer such as taxes and prorated expenses

The balance due to the seller and the balance due from the buyer is shown on the closing statement

If the transaction includes financing from a federally regulated lender the closing agent is required to use the Uniform Closing Statement form, also known as the HUD-1