In the wake of the subprime crisis, the Consumer Financial Protection Bureau requires that buyers receive the Closing Disclosure, outlining loan costs among other fees and information pertinent to the borrower, no later than 3 days before closing for review.
At closing the buyer sets up an impound account that allows them to bundle the cost of their mortgage principal, taxes, mortgage insurance, and other monthly costs into one payment. The lender likes this because they can make sure the new owner will keep up to date with all the payments associated with the home.
What is the seller’s closing statement, aka settlement statement? The seller’s closing statement is an itemized list of fees and credits that shows your net profits as the seller, and summarizes the finances of the entire transaction.
Real Estate Commission. Owed to seller’s agent. Real Estate Commission. Owed to buyer’s agent.
The seller’s net sheet is not an official document but an organizational worksheet that your agent will fill out to estimate how much you’ll pocket from your home sale after factoring in expenses like taxes , your real estate agent’s commission, your remaining mortgage, and escrow fees.
And finally, “Miscellaneous” refers to charges that are typically the responsibility of the buyer. In negotiations, however, it’s possible that you agreed to cover some of the fees. The buyer may ask you to pay for a home warranty policy, for instance, while they cover the costs for a pest inspection on your home.
For instance, say you get billed for property taxes in February to cover the previous year. If you’re closing on a sale on April 30, the yearly property tax is “prorated” or calculated for the first four months of the year, and it’s reflected in this section.