A Uniform Settlement Statement must be used for what type of transactions?

The Uniform Settlement Statement, also known as HUD-1, is specifically designed for residential transactions that are financed by federally related mortgage loans. This requirement aims to standardize the way closing costs and financial aspects of a transaction are communicated to the buyer and seller, ensuring transparency and clarity in the process.

When a residential property is financed through a federally related mortgage, such as those backed by the FHA, VA, or other federal programs, the Uniform Settlement Statement must be utilized to itemize all costs involved in the closing of the transaction. This includes details on loan terms, amounts financed, and itemized settlement charges, facilitating a better understanding for all parties involved.

In contrast, other types of transactions mentioned, such as commercial transactions, cash purchases, or investment property sales, do not require the use of this specific document. Each of these types of transactions may involve different documentation and processes that do not adhere to the same federal mandates applicable to residential sales backed by federally related financing. Therefore, the correct answer is focused on the specific context of federally related mortgage loans for residential transactions.