You’re about to cross the finish line in your home selling process. There are just a few more steps that you need to complete before you hand over the keys to the home. During the home closing, the primary document you and your buyer will be dealing with is the settlement statement (also called the closing statement). This is a document that lists out the fees and charges that you, as the seller, and the buyer are required to pay in the housing transaction.
A Guide to the Settlement Statement in Los Angeles
The settlement statement is prepared either by the buyer’s lender or the escrow agent. Regardless of who prepares the statement, that person is required to follow pertinent federal guidelines. The Real Estate Settlement Procedures Act of 1974, the governing law for closing processing in housing transactions.
It is important that you pay close attention to the settlement statement as the for sale by owner seller because it will list out the costs for which you and the buyer are responsible. Most likely, you and the buyer have already negotiated which of you will be paying which closing costs. You must review the settlement statement to ensure these costs have been assigned to the correct party.
Usually, the settlement statement is broken down into two pages. The first page summarizes payments to be made in the housing transaction. Included is the sales price of the home, settlement charges that the borrower must pay, tax adjustments, settlement charges the seller (you) must pay, first mortgage payoff amount, and total amount of cash the borrower (the buyer) must pay to the seller.