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Settlement Statements Explained: Seller

Settlement StatmentA settlement statement is the statement that summarizes all the fees and charges that both the homebuyer and seller face during the settlement process of a housing transaction. The table below gives further explanation as to what these fees and charges are for both buyer and seller.

 


Item:

Contract Sales Price:


Mortgage Payoff:




Title Insurance (Owner's Policy):








Release Tracking Fee:




Taxes Due for Previous Year:






Taxes for Current Year:






Brokerage Fee Commissions:




Real Estate Closing Fee:




Water/Sewer Escrow:





HOA Transfer and Status Letter:





HOA Dues:




Seller Concessions:




Item Explanation:

Credited to the Seller.


The payoff amount is sent to the existing mortgage company and includes additional interest a few days beyond closing.


Typically paid for by the seller, however the contract gives the option for either buyer or seller to pay. Provides a policy to the new owner to insure free and clear title to the property subject to any existing "exceptions" such as Covenants, Conditions, Easements, and Restrictions on the property.


Title company will "track" the release from the payoff lenders to ensure the Release of Deeds of Trust are sent to the county for Recording.


Prior year taxes are not due and payable until the next calendar year. Amounts due for any prior year taxes will be collected form the seller. Typically, any closings after June 15th should already have their taxes for the prior year paid.


Seller is charged their portion of the current year taxes from January 1st to the closing date. Based on either prior year taxes or most recent mill levy and assessed value. This is determined pursuant to the contract.


Real Estate Commissions (total %) as per Listing Agreement.


Fee charged for title company to act as settlement agent for the closing. Typically split 50/50 between Seller and Buyer pursuant to the contract.


Escrowed from seller to cover the final water/sewer bill on the property. Excess amounts to be refunded within 30 days of closing.


Can be paid by Seller, Buyer, or split pursuant to the contract. Fee charged by the management company to transfer names and/or to acquire the status letter.


Any dues up to the day of closing are seller's responsibility. Any prepaid dues will be credited back to seller.


Closing costs the sellers have agreed to pay on the buyer's behalf. New lender might limit the amount the buyer can receive. Debit to seller and credit to buyer.


Land Title's Seller Net Sheets are available via our website, www.ltgc.com or mobile app. The net sheets give an estimate of the fees and charges involved in the real estate transaction. Contact your local Land Title office for more information.

                                                              

                                                                            

Disclaimer: This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is distributed with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal or accounting advice or other expert assistance is required, the services of a competent professional should be sought.
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