The closing statement

Transcript:

Hello! Today we speak about closing statements in the USA which are also known as settlement statements or settlement sheets.

Closing statements are used in real estate transactions to show which costs will be paid by the buyer, and which will be paid by the seller and they are required by law under the Real Estate Settlement Procedures Act of 1974.

Any homebuyer who asks for a mortgage will receive a closing statement from the bank, while the seller will receive one from the real estate agent who assisted the sale.

In general closing statements include the following information:

• Property details. The closing statement includes basic information about the property, such as the address where it’s located, when it was built, and the type of structure it is (i.e., single-family home, multifamily home, apartments, etc.).
• Financial information. The closing statement details the purchase price of the home, deposits paid by the buyer, and seller credits.
• Prorated amounts. If a buyer or seller is paying proportional amounts toward property taxes or homeowners association (HOA) fees, then these are included on the closing statement.
• Loan costs. This section of the closing statement includes information relating to the loan, such as points paid, underwriting fees, and application fees. Mortgage insurance premiums and prepaid interest are also included here.
• Miscellaneous loan costs. Other loan costs would be listed under a separate section. These include appraisal fees, credit report fees, and research fees. Survey fees, inspection fees, and pest inspection fees are also included on the closing statement.
• Escrow and registration fees. Escrow charges are shown on the closing statement, along with any registration fees charged by government entities to register the transaction.
• Commissions. The closing statement specifies what was paid in real estate commissions to the buyer’s agent and the seller’s agent.

Thank you very much and see you next time for more Peter’s Pills to improve your Legal English!

mortgage – prestito ipotecario
homeowners association – associazione di proprietari
underwriting fees – commissione rischio relativo alla sottoscrizione
insurance premiums – premio assicurativo
appraisal fees – spese di perizia
survey fees – spese di visura
pest inspection fees – ispezione per organismi nocivi
escrow charges – spese conto fiduciario

See an example of a closing statement (or settlement statement) here: “Settlement Statement (HUD-1)“

Legal English – Sommario delle Lezioni

• Legal English – Peter’s Pills – Lesson 39 – When is Latin hot, and when is it not?
• Legal English – Peter’s Pills – Lesson 38 – Default
• Legal English – Peter’s Pills – Lesson 37 – Company Agent
• Legal English – Peter’s Pills – Lesson 36 – Injunction (false freind)
• Legal English – Peter’s Pills – Lesson 35 – Mortgage
• Legal English – Peter’s Pills – Lesson 34 – Freehold, Leasehold and Commonhold estates
• Legal English – Peter’s Pills – Lesson 33 – Transferor, Transferee and Transmittee
• Legal English – Peter’s Pills – Lesson 32 – Tax evasion, tax mitigation and tax avoidance
• Legal English – Peter’s Pills – Lesson 31 – Numbers
• Legal English – Peter’s Pills – Lesson 30 – Ordinary resolutions vs special resolutions
• Legal English – Peter’s Pills – Lesson 29 – AGM vs EGM
• Legal English – Peter’s Pills – Lesson 28 – A going concern
• Legal English – Peter’s Pills – Lesson 27 – Collocations: Violate, breach, break, disobey and infringe
• Legal English – Peter’s Pills – Lesson 26 – Company meeting words
• Legal English – Peter’s Pills – Lesson 25 – Mortgagor vs Mortgagee
• Legal English – Peter’s Pills – Lesson 24 – Fixed charges vs Floating charges
• Legal English – Peter’s Pills – Lesson 23 – Doctrine
• Legal English – Peter’s Pills – Lesson 22 – Construe
• Legal English – Peter’s Pills – Lesson 21 – Sign vs Execute
• Legal English – Peter’s Pills – Lesson 20 – The closing statement
• Legal English – Peter’s Pills – Lesson 19 – Writing Business Emails
• Legal English – Peter’s Pills – Lesson 18 – Limited companies
• Legal English – Peter’s Pills – Lesson 17 – Annual Accounts
• Legal English – Peter’s Pills – Lesson 16 – Meetings
• Legal English – Peter’s Pills – Lesson 15 – Attorney-at-law vs Attorney-in-fact
• Legal English – Peter’s Pills – Lesson 14 – Here and there compounds
• Legal English – Peter’s Pills – Lesson 13 – Subject Matter
• Legal English – Peter’s Pills – Lesson 12 – The clear days rule
• Legal English – Peter’s Pills – Lesson 11 – Shareholder, Member or Holder of shares?
• Legal English: Peter’s Pills – Lesson 10 – Competition Law
• Legal English: Peter’s Pills – Lesson 9 – Lasting Power of Attorney
• Legal English: Peter’s Pills – Lesson 8 – Guardianship
• Legal English: Peter’s Pills – Lesson 7 – Damage vs Damages
• Legal English: Peter’s Pills – Lesson 6 – Legal Doublets
• Legal English: Peter’s Pills – Lesson 5 – Escrow
• Legal English: Peter’s Pills – Lesson 4 – Memorandum of Association vs Articles of Association
• Legal English: Peter’s Pills – Lesson 3 – Sign legibly
• Legal English: Peter’s Pills – Lesson 2 – Deed poll
• Legal English: Peter’s Pills – Lesson 1 – Party, counterparty and counterpart

Peter Liebenberg

Peter Liebenberg è uno specialista nella formazione delle persone nella conoscenza della lingua inglese. Ha creato molti corsi nel campo dell’inglese per professionisti, tra cui English for banking, English for business e English for Insurance, ma ha sempre avuto un debole per l’inglese legale. Altri corsi che ha creato comprendono Phrasal Verbs I e II. Quando Peter non fa formazione, corre a Parco Sempione, crea arte nel suo studio sulla Martesana e fa volontariato.