Settlement Statement Law and Legal Definition
Settlement Statement is an itemized document of services and charges relating to the closing of a property required by the Real Estate Settlement Procedures Act (RESPA). It is a statement that summarizes all the fees and charges that both the buyer and seller of the house face during the settlement process of a housing transaction. It gives each party a complete list of their incoming and outgoing funds. Settlement statement which is under the jurisdiction of the U.S. Department of Housing and Urban Development is also known as the HUD-1.[12 U.S.C.A. § 2601 et seq].
A settlement statement also includes the property's purchase price, the size of the buyer's mortgage loan and any deductions that the buyer has incurred. The buyer has the right to examine the settlement statement 1 day before the closing. The statutes of the Real Estate Settlement Procedures Act (RESPA) require the statement to be used as the standard real estate settlement form in all transactions in the U.S. which involve federally related mortgage loans.
