Which document is typically prepared to detail the financial transactions during closing?

The closing statement is the document that is typically prepared to detail all financial transactions that occur during the closing process of a real estate transaction. It provides a clear summary of the debits and credits related to the buyer and seller, including fees, mortgage amounts, down payments, and adjustments for property taxes or utilities. This document ensures transparency and accuracy, allowing both parties to understand their financial obligations and entitlements at the closing of the sale.

In contrast, a document of title typically refers to legal proof of ownership of property but does not outline financial transactions. A purchase invoice may record specific itemized transactions, but it is not comprehensive for a real estate closing, as it lacks the detailed financial breakdown required for this context. A transfer certificate relates to the transfer of ownership or rights but does not provide the detailed financial information needed at closing either. Therefore, the closing statement is essential for documenting all aspects of the financial exchange that takes place at the end of a real estate transaction.