What is a primary function of a closing statement?

The primary function of a closing statement is to clarify all costs involved in a real estate transaction. This document serves as a comprehensive summary that outlines the financial aspects associated with the sale. It typically includes details about the purchase price, loan amounts, prorated taxes, title insurance costs, and other closing costs, ensuring that both the buyer and seller have a clear understanding of what is being charged and how the final amounts are determined. This transparency is crucial for both parties to ensure that there are no surprises at the closing table and that all financial obligations are clearly communicated and agreed upon prior to the conclusion of the transaction.

While other options may touch upon aspects related to real estate transactions, they do not capture the essential purpose of the closing statement, which is focused specifically on financial clarity and accountability.