What is typically included in a closing statement?

The closing statement is a comprehensive document that outlines all the financial details involved in a real estate transaction, reflecting the final calculations of costs and credits that appear in the sale. One key component of the closing statement is the inclusion of prorated taxes and fees. This ensures that both the buyer and seller are responsible for their share of property taxes and other fees only for the time they own or occupy the property.

Prorated taxes and fees account for the fact that the seller may have already paid property taxes for the year, and the buyer will take over payment for the portion of the year they will own the property. This careful calculation is essential for fair distribution between the parties and is a standard practice in real estate transactions.

In comparing this with other potential options, while the seller’s existing mortgage details, sales price, and home warranty information may be part of the transaction process and related documents, they do not form the core part of the financial calculations that must be itemized on the closing statement. Prorated taxes and fees stand out as crucial elements directly impacting the overall financial settlement between parties at closing.