What information does a HUD-1 Settlement Statement provide?

The HUD-1 Settlement Statement serves as a crucial document in real estate transactions, particularly in closing procedures. It summarizes all charges and credits associated with the transaction for both the buyer and seller. This means that it provides an itemized list of the closing costs, including loan fees, title charges, and any credits that may have been negotiated, such as seller contributions.

By consolidating this information into one document, the HUD-1 Settlement Statement ensures that both parties have a clear understanding of the financial aspects of the deal. This transparency is essential for ensuring that all terms are agreed upon before the transfer of ownership takes place. It functions as a financial snapshot of the transaction, helping both parties keep track of what they owe or are owed, and ensuring that there are no surprises at closing.

The other options provided do not accurately describe the purpose of the HUD-1. For instance, it does not detail the appraised value of the property, nor does it provide a history of ownership or specific property tax information.