Closing Statement

A Closing Statement, also called a settlement statement or HUD-1 form, is a detailed accounting of all financial aspects of a real estate transaction. It itemizes all costs, fees, adjustments, and payments made by both buyer and seller at closing. The statement includes the purchase price, loan amount, earnest money deposit, prorated taxes and HOA fees, title insurance, recording fees, real estate commissions, and all other closing costs. In the United States, the Closing Disclosure form has replaced the HUD-1 for most residential transactions. This document ensures transparency by showing exactly where every dollar is going and is typically provided to parties a few days before closing to allow review. It serves as the official record of the transaction's financial details.