Closing Statement

In real estate transactions, a closing statement is the detailed financial accounting that shows the final distribution of funds between the buyer and seller as of the day of closing. It itemizes all credits, debits, prorations, fees, and charges associated with the transaction, including the purchase price, closing costs, loan proceeds, and adjustments for items such as taxes, rents, or utilities. This statement ensures that both parties understand how the final amounts due or received are calculated. While the HUD-1 settlement statement was traditionally used in many transactions, it has largely been replaced in most residential transactions by the Closing Disclosure, though the term HUD-1 may still be referenced in certain contexts.