Escrow & Title

What is a 'HUD-1 Settlement Statement' (or its modern equivalent, the Closing Disclosure) used for in a Rhode Island closing?

ATo show the property's market value
BTo itemize all financial transactions including credits, debits, and costs for both buyer and seller at closing✓ Correct
CTo transfer the mortgage to the new lender
DTo record the deed with the city

Explanation

The Closing Disclosure (formerly the HUD-1) provides a complete accounting of all financial details of the transaction—including purchase price, loan amount, prorations, closing costs, and net proceeds—for both buyer and seller.

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