Why agents care
The settlement statement is the binding figure that a seller net sheet estimates. Telling sellers so upfront keeps trust intact when final numbers move by a few hundred dollars because of prorations or payoff interest.
Glossary term
Settlement statement
A settlement statement itemizes every charge and credit at closing: sale price, payoffs, commissions, taxes, prorations, title and escrow fees, and the net amounts due to or from each party. Depending on the transaction, it may be the ALTA settlement statement, the Closing Disclosure or a HUD-1 for certain transactions.
Example
Example: a seller's net sheet estimated $159,400. The settlement statement showed $158,950 after a tax proration and per-diem payoff interest that weren't in the estimate.
Questions by topic
Settlement statement: common questions
Is the settlement statement the same as the Closing Disclosure?
For financed purchases the Closing Disclosure covers the borrower's side. Many title companies also prepare an ALTA settlement statement showing both sides.
When do sellers see it?
Usually a day or two before closing, from the title or escrow company.
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