Escrow & Title
In Montana, a 'settlement statement' (HUD-1 or Closing Disclosure) shows all parties to a transaction:
AOnly the buyer's closing costs
BAll financial aspects of the transaction including purchase price, prorations, fees, taxes, and loan payoffs✓ Correct
COnly the seller's net proceeds
DOnly the real estate commission and lender fees
Explanation
The settlement statement (now the Closing Disclosure in TRID transactions) provides a comprehensive accounting of all financial aspects of the closing: the purchase price, earnest money credit, new loan amount, all closing costs for buyer and seller, prorations of taxes and other items, loan payoffs, and the final cash amounts owed by or due to each party.
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Key Terms to Know
Closing Costs
Fees and expenses paid by the buyer and/or seller at the closing of a real estate transaction, in addition to the property's purchase price.
ProrationThe division of ongoing property expenses (taxes, HOA dues, rents) between buyer and seller at closing based on their respective days of ownership.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
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