Closing Costs and the settlement statement

Question 1

A detailed accounting of a real estate transaction, usually prepared by the escrow company, showing cash received and dispersed as well as buyer and seller debits and credits

Answer 1

Closing statement – also called settlement statement

Question 2

A sum of money to be received

Answer 2

Credit

Question 3

Any sum of money owed; a charge on the closing statement

Answer 3

Debit

Question 4

A system in which things of value are held on behalf of the parties to a transaction by a disinterested third-party until the specified conditions have all been met

Answer 4

Escrow

Question 5

A federal law that subjects the disposition of a US real property interest held by foreign person to income tax withholding

Answer 5

FIRPTA (foreign investment in real property tax act)

Question 6

The allocation of expenses, real estate taxes, or rents between buyer and seller in proportion to their actual use of an item

Answer 6

Proration