What is the main purpose of a closing statement in real estate transactions?

The main purpose of a closing statement in real estate transactions is to summarize the financial aspects between the parties involved. This document details all the financial transactions that occurred during the closing process, including the purchase price, any loan amounts, closing costs, and adjustments for property taxes or utilities. It provides a clear account of what the buyer and seller will be receiving or paying, ensuring that all financial details are transparent and agreed upon before the finalization of the sale.

The closing statement serves as an essential tool for reconciling the amounts owed by the buyer and seller, fostering a clear understanding of the financial obligations arising from the transaction. By providing a comprehensive overview of financial responsibilities, it minimizes the risk of disputes after the closing.