Settlement Statement

A settlement statement is a document that outlines who paid what to whom in a real estate transaction. This statement is supposed to document all monies involved in the transaction so that both seller and buyer have this information. Some of the information provided on a settlement statement include the contract price of the property, mortgage settlements, taxes paid, real estate agent fees, title company fees, closing costs, and any other costs or fees involved. The statement usually outlines how these charges affect the buyer and the seller. In most transactions, there is a standard settlement statement form. An example of this is the HUD-1 Uniform Settlement Statement used for all HUD-based real estate transactions. States and even local municipalities may have their own requirements as far as how this statement reads. The closing agent will provide the proper form for the transaction.