A closing statement summarizes various financial aspects related to which parties?

A closing statement provides a detailed summary of the financial transactions involved in a real estate transaction and encompasses the interests and responsibilities of both the buyer and seller. It outlines the purchase price, any fees or commissions, prorated taxes, and adjustments that are applicable to both parties. By presenting a comprehensive view of the financial aspects, the closing statement ensures transparency and clarity for everyone involved in the transaction.

This document serves as a critical tool for both buyers and sellers to understand what they owe or are receiving, thus fostering trust in the transaction process. While other parties, such as lenders and brokers, may also have financial components represented in the transaction, the closing statement fundamentally encapsulates the contributions and obligations of both the buyer and the seller, making it essential for both parties to review this statement carefully before finalizing the sale.