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Settlement Statements Explained: Buyer

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.



Contract Sales Price:

Earnest Money:

New Loan Amount:

Title Insurance Loan Policy:

Tax Certificate:

Record Warranty Deed:

Record Deed of Trust:

Documentary Fee:

Taxes for Current Year:

Tax Reserve:

Hazard Insurance Premium:

Hazard Insurance Reserve:

Loan Origination Fee:

Loan Discount Fee:

Interest on New Loan:

Appraisal Fee:

Credit Report:

ILC or Survey:

HOA Transfer and Status Letter:

HOA Dues:

Real Estate Closing Fee:

Loan Closing Fee:

Seller Concession:

Item Explanation:

Debited (charged) to buyer.

Upfront payment for buyers at time of contract. Credit to buyers.

Amount of buyer's new loan shown as a credit to the buyer.

Provides the new lender with a title insurance policy on the property; insures their Deed of Trust of being in 1st lien position.

Reflects status of the property taxes.

Cost to record with the county.

Cost to record new lenders deed of trust.

Charged by the State of Colorado; ($.01 per $100 based on sales price).

Buyer is credited the Seller's portion of the current year taxes from January 1st to the closing date as taxes are paid in arrears. Based on either prior year taxes or the most recent mill levy and assessed value. This is determined in the real estate contract.

Required by lender to establish escrow account to pay future taxes on property.

One year insurance premium on home.

Required by lender to establish escrow account for future insurance premiums.

Charge from new lender to get the loan to the table; can include a percentage of the loan amount along with miscellaneous lender fees (i.e. Processing, Underwriting, Doc prep).

Charge to the buyer; usually buys down the interest rate.

Charged to the buyer from the day of closing to the first day of the following month.

Cost for home appraisal.

Cost for lender to run credit report.

Charge to Buyer or Seller per contract if ILC or Survey is required.

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. Buyer will be charged for HOA dues from the day of closing and forward.

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.

Charge from title company to prepare the HUD-1 and close the loan side of the transaction on behalf of the new lender.

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's Estimated Net Sheets are available via our website, 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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