What is the purpose of the Uniform Settlement Statement?

The Uniform Settlement Statement serves to list all of the costs and fees to be paid at closing. This document, often referred to as the HUD-1 Settlement Statement, is a crucial component in real estate transactions as it provides a detailed breakdown of the financial aspects involved in the closing process.

It includes various items such as loan origination fees, title insurance, taxes, and any other charges associated with the transaction. This transparency allows both buyers and sellers to review and ensure they understand all costs before finalizing the sale. Having a complete overview of the financial obligations helps in preventing surprises and promotes clarity for both parties involved in the transaction.

The other options, while related to real estate, do not accurately represent the primary function of the Uniform Settlement Statement. For example, summarizing the real estate market or outlining mortgage terms relates more to market analysis and lending, respectively, rather than detailing closing costs. Similarly, providing home maintenance tips is a completely different aspect of homeownership, which is not the focus of the settlement statement.