Learn About Settlement Notices
A settlement notice is a document that outlines the final details of a real estate transaction, including the terms of the sale and all of the costs and fees associated with the sale. It is typically prepared by the escrow officer or title company and is provided to the buyer and seller before the transaction is completed.
The settlement notice is also known as a closing statement, settlement statement, or HUD-1 form, depending on the type of transaction and the jurisdiction. The settlement notice is a legally binding document that outlines the final costs associated with the transaction and the distribution of those costs between the buyer and seller.
The settlement notice typically includes information such as the purchase price, loan amount, prorated property taxes, and closing costs such as title insurance, appraisal fees, and escrow fees. It also includes any credits or refunds that may be due to either party, such as a seller’s credit for repairs or a buyer’s credit for prepaid property taxes.
The settlement notice is an important document that both the buyer and seller should review carefully to ensure that all of the terms of the sale are accurately reflected and that there are no errors or discrepancies. Once the settlement notice has been reviewed and agreed upon by all parties, the transaction can be completed, and ownership of the property can be transferred.