Settlement Statement – The document issued at the end of a real estate closing that itemizes the funds in a transaction. It breaks out price, loan amount, down payment, credits, prorations, commissions, closing costs and then shows how much is owed by the buyer and what is owed to the seller. It is also called a “HUD-1 Settlement Statement” because the form is issued by the Department of Housing and Urban Development (HUD). It can also be referred to as a “closing statement”.
- Example: After closing of a real estate transaction the buyer and seller are given settlement statements that show where every penny in the transaction went.
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