What is a Real Estate Closing Statement?

What is a Real Estate Closing Statement?

You just completed a real estate transaction – congratulations. Now, your New York real estate lawyer is preparing a closing statement. What is a real estate closing statement, and why is it necessary?

What is a Real Estate Closing Statement?

A closing statement is simply a summary of the transaction that you will keep for your own records. During the closing process, a number of checks are exchanged, so all of this information can quickly get confusing and overwhelming. What the closing statement does is organize all of this information, so you have a clear understanding of the exchanges and a copy of the transaction for your records.

Understanding the ins and outs of real estate can be time consuming and confusing, to some extent. If you are looking for a New York real estate lawyer, the dedicated attorneys at Scheichet & Davis, P.C. are here to assist you with the process. Give our New York attorneys at call today at (888) 373-0163.

What Does a Closing Statement Contain?

Closing statements should contain some basic information about the transaction, including:

  • The names of the seller and purchaser
  • Property address
  • The actual closing date
  • Closing location

It’s not uncommon for closings to be postponed a day or two (sometimes longer). It’s important, however, for the statement to include the actual closing date because that is the date the title was transferred.

There are a number of people involved in a closing, and all of those people (along with their roles) should be listed in the closing statement. You may have noticed most people exchanging business cards at the start of the closing. They do this so that everyone can easily keep track of each other and their roles.

Some of the key people involved in a closing are:

  • Seller(s) – the person (or people) selling the property.
  • Purchaser(s) – the person (or people) purchasing the property.
  • The seller’s attorney – The name of the attorney and the name and address of the firm.
  • The purchaser’s attorney – The name of the attorney and the name and address of the firm.
  • The purchaser’s lender’s attorney – Banks typically send their attorney to a closing.
  • Brokers – The names of the brokers who were involved in the deal.
  • Title company – The name of the title closer representing the title company.

In addition to all of this information, the statement must also include an accurate account of the transaction. The amount the purchaser must pay is included as well as any adjustments that are made during the closing.

Buyers will receive loan proceeds when purchasers take out loans to buy the property. In many cases, sellers ask for several, smaller checks, instead of one large lump payment. The closing statement should include all of the checks that were cut to ensure the numbers add up.

Simply put, a real estate closing statement is a summary of the transaction. It can be used as both a checklist for the closing and as a way to keep track of payments.

New York Real Estate Lawyer

At Scheichet & Davis, P.C. we are committed to serving our clients throughout New York with a high level of professionalism and integrity. Give our experienced attorneys a call today to schedule a consultation at (888) 373-0163.