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| Below are sections from a settlement statement plus our comments in italics. This example is based on a home selling for $90,000, with a mortgage balance or $67,800. |
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Note:
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The top left of the statement summarizes the amounts the Buyer/ Borrower must pay, and the right side shows amounts the Seller should receive. In both cases this includes the $90,000 sales price of the home plus any personal property, such as furniture, included in the sale.
In the case of the Buyer/Borrower, the summary includes $978 in settlement charges (closing costs) assessed to the Borrower and detailed on the 2nd page of the statement. |
Summary of Borrower's Transaction |
Summary of Seller's Transaction |
| Sales Price |
$90,000 |
Sales Price |
$90,000 |
| Personal Property |
0 |
Personal Property |
0 |
| Settlement Charges to Borrower |
$ 978 |
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 $425 for annual real estate taxes already paid by the Seller is added as an adjustment to both the Buyer/Borrower's side and the Seller's side. The Buyer/Borrower must pay an $425 (because Seller has paid taxes for period when Buyer will own property), and the Seller receives that $425 (in effect, as a refund). |
| Adjustments for items paid by seller in advance |
Adjustments for items paid by seller in advance |
| Taxes |
$ 425 |
Taxes |
$ 425 |
| Assessments |
$ 0 |
Assessments |
$ 0 |
| Gross Amount Due From Borrower |
$91,403 |
Gross Amount Due to Seller |
$90,425 |
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 The next two sections list moneys paid on behalf of the Borrower, and moneys to be paid by the Seller at the closing ("Reductions in Amount Due To Seller"). In this case the Buyer/Borrower has paid a $1,000 earnest money deposit, and put up $81,000 he or she borrowed as a mortgage loan. The Seller must pay $2,500 in charges plus $67,800 to pay off the balance on the existing mortgage loan. |
| Paid By Or In Behalf of Borrower |
Reductions in Amount Due To Seller |
| Earnest money deposit |
$ 1,000 |
Settlement Charges |
$ 2,500 |
| Principal amount of loan (real estate mortgage loan) |
$81,000 |
Payoff of first mortgage loan |
$67,800 |
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Payoff of 2nd mortgage loan |
$ 0 |
| Taxes and assessments due, but not paid by the Seller, are added to amounts paid by Borrower (because he inherits the liability), and also added as a reduction in amount due to the Seller. |
| Adjustments for items unpaid by Seller |
Adjustments for items unpaid by Seller |
| Taxes |
$ 0 |
Taxes |
$ 0 |
| Assessments |
$ 0 |
Assessments |
$ 0 |
| Total Paid By/For Borrower |
$82,000 |
Total Reduction to Seller $ |
$70,300 |
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 The bottom sections of the statement list total cash due from Borrower (Buyer) and total cash due to the Seller. |
| Cash at Settlement From Borrower |
Cash at Settlement To Seller |
| Gross amount due from Borrower |
$91,403 |
Gross amount due to Seller |
$90,425 |
| Less amounts paid by Borrower |
$82,000 |
Less reductions to Seller |
$70,300 |
| Cash From Borrower |
$ 9,403 |
Cash To Seller |
$20,125 |
| "Cash To Seller" should be within a few hundred dollars of what was calculated on your "Net to Seller Worksheet". |
| "Cash From Borrower" is the amount of the certified check Buyer must provide at the closing (essentially the "down payment.") |
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Second page of Settlement Statement |
