What does “HUD-1 Settlement Statement” provide?

The HUD-1 Settlement Statement is essential in real estate transactions, as it provides a comprehensive and detailed account of all costs associated with the transaction. This includes itemized lists of fees, closing costs, and any other financial obligations that both buyers and sellers encounter at the closing of the property sale.

This document serves a crucial role in ensuring transparency, as it lays out exactly where funds are going, helping parties understand the total amount due at closing and what charges are applicable. From lender fees to title insurance costs, the HUD-1 helps prevent surprises at the final stages of a property transaction by providing a clear financial picture.

While the other options mention important aspects related to real estate, they do not accurately capture the broader financial overview provided by the HUD-1. It is not primarily focused on commissions, buyer/seller responsibilities, or serving as a contract template, but rather as a thorough statement detailing all transaction-related costs.