Closing statement

The full definition

The itemized accounting of every credit, debit and disbursement at a closing. Commercial deals use a HUD-1 or ALTA settlement statement; consumer mortgage closings pair it with the Closing Disclosure.

Also called: Settlement statement, ALTA settlement statement, HUD-1.

Which related terms should you know?

These are the terms that come up alongside closing statement in the same file.

Closing Disclosure

The federal disclosure listing a residential borrower's loan terms, closing costs and cash to close. It is delivered at least three business days before the loan is consummated.

Transfer tax (RPTT and NYS)

Taxes on the conveyance itself, one City and one State. Rates step up at higher prices, and who pays is set by custom and then confirmed by the contract.

Flip tax

A transfer fee charged by a co-op or, less often, a condominium when a unit changes hands. It is a creature of the building's governing documents, not a government tax.

Mortgage recording tax

The New York tax due when a mortgage is recorded, computed on the new money secured. On a building with six or fewer apartments the lender pays 0.25 points of the combined rate and may not pass it to the borrower, so a buyer there budgets 1.8 or 1.925 percent rather than the full rate. A CEMA is the standard structure used to reduce the taxable amount.

Premium (title insurance)

The one-time charge for a title policy, computed from the filed New York rate schedule by amount of insurance, plus any endorsement and search-related charges.

Survival clause

The contract provision that carries specified representations past the closing. Without it, the doctrine of merger extinguishes most representations when the deed is delivered.

What else should you read before closing?