A closing statement — also referred to as a settlement statement — is the official statement which reflects the complete accounting (“settlement”) of a real estate closing. The escrow holder prepares this statement to report the allocation of expenses and adjustments for each party, and to demonstrate how all of the funds deposited into escrow were distributed. The purchase price, plus all charges and credits associated with the transaction, are each presented as line-item entries within the statement. The final closing statement is delivered to the parties according to their instructions when the escrow is closed. It is an important record for buyers and sellers to retain for income tax filing purposes.
