Glossary

Closing Statement

Also known as: settlement statement

The itemized accounting document produced at closing that shows each financial credit and debit to the buyer and seller — purchase price, deposit applied, prorations, closing costs, and commissions — and nets out to the funds each party must pay or will receive.

The closing statement is the document that operationalizes every negotiated financial term of the PSA into a single reconciled ledger; brokers, buyers, and sellers should review it line by line before closing, since it is the definitive record of what actually changed hands and is frequently referenced in any post-closing dispute or tax reporting. In modern CRE commercial closings the standardized HUD-1 form has largely been replaced by the ALTA settlement statement, though closing statement remains the generic term commonly used in conversation regardless of which specific form is produced. Commission payments to brokers are typically shown as a line-item disbursement directly off the closing statement, meaning the escrow agent pays the broker directly out of sale proceeds at closing rather than the seller cutting a separate check afterward.