What Is a Settlement Statement in Real Estate?
A real estate settlement statement is a detailed receipt showing every cent that changes hands between buyer and seller, including payments to lenders and other professionals. The document discloses everything, so there are no surprises, and both parties know the final purchase price and what they owe or are owed. At Kentuckiana Real Estate Academy, we familiarize you with the term and the process so you're ready to walk your clients through a settlement statement and catch anything that needs a second look.
Keep reading to see what a settlement statement in real estate includes and how it's used at closing.
Purpose of Real Estate Settlement Statements
A real estate settlement statement is a document that outlines the details of the purchase transaction. It's important for you, as the real estate agent, to review the document and make sure everything is correct. You should also go over it with your client to make sure they understand it and that there are no mistakes.
The settlement statement in real estate covers several important things, including:
- The sale price.
- Taxes.
- Assessments.
- Deposits made.
- Real estate agent commissions.
- Mortgage broker and loan origination fees.
- Escrow funds.
- Transfer fees.
- HOA dues paid or owed, if applicable.
Reviewing this document in advance protects you and your client. If you miss an error, it could delay the closing or create confusion at the table. For instance, if your commission isn't listed correctly, catching it before closing day lets you correct it rather than chasing it down afterward.
When the seller and buyer sign the settlement statements at closing, it shouldn't be a surprise. All parties should know all of the details and be on the same page about them.
Become a Real Estate Agent
If a career in real estate is your goal, Kentuckiana Real Estate Academy can help. Our courses are available both online and in person, and our instructors are real estate experts. You'll learn about different jobs in real estate, explore the terminology you need to know, understand what it means, and get the nitty-gritty details of the job. Our goal is to prepare you for the licensing exam so you can become a real estate agent and give you real insight into what you will experience as a new agent.
Our courses cover real estate law, property assessments, and more, so you can get out and make a name for yourself. We also offer licensure courses for real estate brokers and continuing education classes, so no matter where you are in your journey, we can help you with the next step.
Contact Us for a Career in Real Estate in Kentucky
When you're ready for an exciting career that can change your future, contact Kentuckiana Real Estate Academy. We offer classes and training to prepare you for both the real estate licensing exam and your real estate career. You'll learn from instructors with real-world experience how to handle practical scenarios you'll encounter, such as settlement statements and appraisal gaps.
To learn more about our classes and enroll in a two- or twelve-week course, call (859) 317-4846 or send us a message through our contact form. We proudly serve the areas surrounding Louisville and Lexington, KY.
