What is the purpose of a closing statement in a real estate transaction?

The purpose of a closing statement in a real estate transaction is to summarize the transaction details and costs. This document serves as a comprehensive account of the financial aspects involved in the sale, including the purchase price, closing costs, fees, and any adjustments that may have been made. It provides both the buyer and seller with a clear overview of the final figures, ensuring that all parties are informed of their financial obligations and entitlements at the closing of the transaction.

This document is crucial as it helps to establish transparency and accountability in the real estate process, allowing all involved to confirm that the terms of the deal have been followed and that there are no outstanding costs or discrepancies. Understanding the closing statement is essential for both buyers and sellers to ensure a smooth and successful completion of the transaction.