What is a "closing statement"?

A closing statement is an essential document in real estate transactions that details all financial aspects related to the sale. It provides a comprehensive breakdown of costs, fees, and charges that must be settled at the closing of a real estate transaction. This includes the purchase price of the property, any applicable closing costs, prepaid taxes, insurance, and any other expenses incurred by either the buyer or seller.

The closing statement serves to ensure transparency and clarity for both parties involved, allowing them to understand their financial obligations clearly. By listing the amounts owed by both the buyer and seller, it helps facilitate a smooth and organized transfer of funds as the final step in the transaction. This document is crucial for both parties as it acts as a final accounting of the deal.

Other options provided do not capture the essence of what a closing statement entails. A list of amenities refers to the features of the property but does not address the financial transactions. A summary of the appraisal report pertains to the valuation of the property rather than the costs incurred in the closing process. Similarly, a contract outlining property maintenance is focused on ongoing responsibilities and does not relate directly to the closing transactions.