In one sentence
The itemized accounting of all funds in a closing, showing every charge, credit, and disbursement for each party.
The longer version
The settlement statement, on commercial deals often a closing statement rather than the residential HUD-1, reconciles sources and uses to the dollar. Every party signs off before funds move.
It is one of the most reviewed documents in a closing, and the executed version anchors the financial record in the closing binder.
Common questions
- What is a settlement statement in a commercial closing?
- The itemized accounting of all funds at closing, showing every charge, credit and disbursement for each party, approved before funding.
- Is the HUD-1 still used for commercial loans?
- Residential mortgages moved to the closing disclosure, but commercial closings use settlement statements, often on the ALTA form, which are sometimes still informally called HUD-1s.
- Who signs the settlement statement?
- The borrower and, in a sale, the buyer and seller sign it, and the lender approves it before the title company disburses funds.
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