Settlement statement
An itemized list of every charge and credit for the buyer and seller in a sale. It shows exactly where each dollar goes at closing and should match the Closing Disclosure.
Also called: HUD-1, ALTA, ALTA settlement statement, closing statement
Related terms
The final form showing the loan terms, payment and every closing cost, which the borrower must receive at least three business days before closing. Compare it with the Loan Estimate for changes.
Fees and charges paid at closing on top of the price, such as lender fees, title insurance, recording fees, taxes and prepaid items. Buyers often pay around 2% to 5% of the price; sellers pay their own set of costs.
Splitting ongoing costs like property taxes, HOA dues or rent between buyer and seller based on the closing date. Each side pays only for the days they own the property.
The money a seller actually receives at closing after paying off the mortgage, commissions, and closing costs. It is shown on the settlement statement.
The neutral party who holds funds and documents, follows the written instructions of buyer and seller, and pays everyone out at closing. Depending on the state, this is an escrow company, title company or attorney.