What does a closing statement detail?

A closing statement provides a detailed account of the final costs and adjustments that occur in a real estate transaction. This document is critical for buyers and sellers as it outlines all financial aspects related to the sale, including the purchase price, adjustments for property taxes, utility fees, and any closing costs that must be paid at the closing of the sale. It serves as an official record that lists both debits and credits for the parties involved, itemizing everything that has to be paid or received as a part of the transaction.

Closing statements are typically prepared by the closing agent or attorney involved in the transaction and are presented to the parties during the closing meeting. This level of detail ensures transparency and helps both parties understand their financial obligations before finalizing the deal.

The other options don't capture the comprehensive financial details required at the end of a real estate transaction. For instance, the initial listing price pertains to what the property was listed for and does not reflect the actual costs involved at closing. A summary of home inspection findings is concerned with the condition of the property rather than financial transactions, and the history of property taxes is also irrelevant to the completion of the sale as it does not detail current costs and adjustments associated with the closing process.