What is a "closing statement" in real estate transactions?

A "closing statement" is indeed a document that outlines the financial transactions and adjustments that take place at the close of a real estate transaction. This critical document ensures that all parties involved—typically the buyer, the seller, and often their respective real estate agents—have a clear understanding of the financial details of the deal. It enumerates the sale price, any deposits made, prorated property taxes, closing costs, and other fees related to the transaction. This level of detail helps to ensure transparency and accuracy in the financial dealings of the real estate transaction, contributing to a smoother closing process.

Other documents, such as schedules of activities or legal documents for recording sales, serve different purposes and do not specifically focus on the financial aspects, making them distinct from the function of a closing statement.