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

The purpose of a closing statement during a real estate transaction is to summarize all financial details involved in the transaction. This document serves as a comprehensive overview of the costs associated with the purchase of the property, including the purchase price, closing costs, and any other fees that may be applicable.

It provides a clear breakdown of what the buyer and seller are paying and receiving, ensuring transparency and helping all parties understand their financial obligations. This summary is essential for both parties, as it helps to avoid any misunderstandings regarding the financial aspects of the transaction.

Although the selling price and mortgage terms are essential components of the transaction, they are not the sole focus of the closing statement. Similarly, while a legal description of the property is crucial, it is not the primary function of the closing statement, which is oriented specifically towards financial details rather than the legal attributes of the property itself.