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How to Read a Settlement Statement When Selling a Property

Whether you’re the homeowner or the property management company, you must fully understand settlement statements.

It is a document that lists your settlement payment, any expenses related to settling your account, and any fees that may be charged to you for settling your account. This settlement statement is your proof of payment, and it’s important to hold onto this information for 7 years.

Every settlement statement is a bit different, but there are some things they all have in common. The document you submit to an insurance company after a car accident will include the name of the insurance company, the claim number, the phone number of the claims department, and the contact information for your attorney. 

Anything else on the settlement statement is a matter of personal preference. That can include your full name, your address, the phone number and email address you want people to contact you with, and discounts for multiple policies.

Selling a house is a complicated process, and one of the biggest questions you may have would be whether or not you are receiving a closing statement. A closing statement is the seller’s documentation of what the buyer owes them and what the buyer owes the seller on the final transaction, which can be important when it comes time to close out the deal. 

Typically, you and the buyer will only have a closing attorney review the documents to make sure that the final numbers are correct, and then the closing attorney will draw up the final closing statement for you. Unfortunately, this documentation is not always included with all of your closing documents.

When closing on a house, there are two documents to hold onto the settlement statement and the deed. Along with other forms, documents, and letters, these documents make up the settlement package. But who might prepare these important documents?

A licensed settlement agent prepares the settlement statement, and that is done after consulting with all parties, including the buyer, the seller, the lender, and the title company. 

Settlement agents must prepare the settlement statement within 15 days of signing the purchase agreement. They must mail the settlement statement to all parties within 10 days of settling the sale.

If you are selling a home, the settlement statement will be different from your mortgage statement. If you are buying a home, the settlement statement will be different from the seller’s sales statement.

The settlement statement not only reflects the costs paid by the buyer but any fees incurred by the seller’s lender. It contains a breakdown of closing costs, including loan origination fees, interest, taxes, and points, as well as other closing costs. The settlement statement may also include fees that are associated with the transfer of title or ownership, such as title insurance, deeds, and taxes.

It will detail all financial matters related to your home sale: This includes the sales price, the amount of your down payment, and any closing costs. You will need to understand these financial terms in order to sign the real estate sales agreement, so be sure to read the settlement statement carefully.

Since selling a property involves a lot of red tapes, it’s only natural to get stressed out. However, you shouldn’t let that stress ruin the sale. That’s why it’s important to make sure that you understand any documents or statements you receive from the buyer. The buyer’s settlement statement is your chance to make sure that everything on the purchase contract is accurate, so read it carefully and get both yourself and your lawyer to clarify anything that seems off.

They contain important information like who the Seller was, who the Seller’s lawyer was, who the Seller’s real estate agent was, and who the Buyer’s lawyer was. But settlement statements have some other important details for buyers and sellers as well, like the title deed, the sale price, who pays the closing costs, and more.

When it comes time to sell the house, settlement statements are the documents that tell you the price of the home, what repairs need to be made to it, and how much money you will get from the sale. Review the settlement statement carefully before you sign. Signing means that you agree to everything in the documents, so read every word. 

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