Settlement Statements Explained: Seller
A settlement statement is the statement that summarizes all the fees and charges that both the home-buyer 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||Credited to the Seller.|
|Mortgage Payoff||The payoff amount is sent to the existing mortgage company and includes additional interest a few days beyond closing.|
|Title Insurance (Owner’s Policy)||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.
|Release Tracking Fee||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.|
|Taxes Due for Previous Year||Prior year taxes are not due and payable until the next calendar year. Amounts due for any prior year taxes will be collected from the seller. Typically, any closings after June 15th should already have their taxes for the prior year paid.|
|Taxes for Current Year||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 determines pursuant to the contact.|
|Brokerage Fee Commissions||Real Estate Commissions (total 0%) as per Listing Agreement.|
|Real Estate Closing Fee||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.|
|Water/Sewer Escrow||Escrowed from seller to cover the final water/sewer bill on the property. Excess amounts to be refunded within 30 days of closing.|
|HOA Transfer and Status Letter||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.|
|HOA Dues||Any dues up to the day of closing are seller’s responsibility. Any prepaid dues will be credited back to seller.|
|Seller Concessions||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.|
Click here for our Seller’s Estimated Net Sheets. Contact your local land Title office for more information.