What Is an ALTA Settlement Statement?
An ALTA settlement statement is a standardized, itemized disclosure form used in home sales to show the complete breakdown of all the money changing hands at closing. This document was created by the American Land Title Association (ALTA) to provide a transparent accounting of all parties involved in the sale.
The primary purpose of an ALTA settlement statement is to ensure all parties clearly understand how the final numbers were calculated, including costs related to the purchase price, loan fees, title charges, taxes, commissions, and more.
The ALTA statement is prepared by the title company or escrow agent, who uses it to confirm that each party receives or pays exactly what they should on closing day.
ALTA settlement statement vs. closing disclosure
While the ALTA statement shows the full financial picture for both sides, the federally mandated Closing Disclosure (CD) is a buyer-only document required for most mortgage loans.
Key differences:
- Closing disclosure
- ALTA settlement statement
- Shows both buyer and seller debits and credits.
- Not regulated by federal law.
- Widely used in traditional, cash, investment, and commercial transactions.
In many closings, buyers receive both documents, while sellers typically receive only the ALTA statement.
Who prepares and provides the ALTA settlement statement?
Title companies, escrow agencies, or attorney-closing offices prepare the ALTA settlement statement.
Recipients typically get a draft one to three days before closing, though some states and lenders may provide it earlier or later depending on file readiness. Updated versions are sent as final numbers are confirmed.
What the ALTA settlement statement includes
The ALTA form organizes all amounts into clear categories so buyers and sellers can see exactly how the final amount due was calculated. Standard sections include:
- Purchase price and earnest money credits
- Loan fees (origination, underwriting, appraisal, points)
- Title insurance premiums and settlement fees
- Real estate commissions
- Taxes, HOA dues, and prorations
- Government recording charges
- Payoffs for mortgages, liens, or judgments
- Miscellaneous charges (home warranties, surveys, pest inspections)
Prorations and adjustments
Some expenses, like property taxes or HOA dues, are shared between buyer and seller. The ALTA form prorates these based on the closing date, ensuring each party pays their fair share.
Loan charges and impounds
For financed transactions, loan charges may include:
- Origination and underwriting fees
- Discount points
- Appraisal and credit report fees
- Prepaid interest
If the lender requires an escrow or impound account, the buyer may also prepay property taxes, homeowner’s insurance, or mortgage insurance.
Title charges and commissions
This section outlines:
- Owner’s and lender’s title insurance premiums
- Settlement/escrow fees
- Title search and exam fees
- Real estate broker commissions
Government and recording charges, payoffs, and miscellaneous
This portion lists:
- County recording fees for the deed and mortgage
- Transfer taxes (if applicable)
- Payoffs for existing mortgages or liens
- Additional charges such as home warranties, surveys, or inspections
Subtotals, totals, and credits vs. debits
At the end of the statement, the form summarizes:
- All debits (amounts owed)
- All credits (payments or funds already provided)
- The final cash to close for the buyer or cash to seller in proceeds
This section ensures every dollar is accounted for.
How to read your ALTA settlement statement
A step-by-step review method:
- Start with the header: Verify property address, names, and closing date.
- Check the purchase price and credits: Ensure earnest money, seller credits, and lender credits are included.
- Review loan charges: Confirm they match your lender estimates.
- Look at title charges: Compare against quoted premiums and fees.
- Check prorations: Make sure taxes and HOA dues are calculated correctly.
- Verify payoffs: Ensure old mortgages or liens are accurate.
- Examine totals: Confirm that cash-to-close or seller proceeds match expectations.
What should you look for and why It matters
When reviewing your ALTA statement, watch for:
- Incorrect prorations
- Missing or duplicate fees
- Misapplied credits
- Unexpected lender or title charges
- Incorrect payoff amounts
A careful review protects both parties from errors that could delay closing or cause financial issues down the line.
Versions of the ALTA settlement statement
ALTA provides multiple formats, including:
- Buyer’s statement
- Seller’s statement
- Combined statement
- Lender’s version
Title companies choose the version that best fits the transaction.
When do you receive the ALTA settlement statement?
Most parties receive the ALTA statement a few days before closing once all invoices, payoffs, and lender figures are finalized. Final versions are signed at closing.
Tips for reviewing before closing
- Request the statement as early as possible.
- Compare figures with your lender estimates and listing agreement.
- Confirm prorations based on your state’s tax calendar.
- Ask your Redfin agent or attorney to review for accuracy.
- Bring any discrepancies to the title company immediately.
Frequently asked questions about ALTAs
Is an ALTA statement the same as a closing statement?
Yes—“closing statement” is a general term often used to refer to the ALTA settlement statement, which itemizes the financial breakdown of a transaction.
What is the difference between HUD and ALTA settlement statements?
The HUD-1 was used for most residential transactions prior to 2015. Today, most residential closings use the ALTA statement for clarity and consistency, while the buyer also receives a Closing Disclosure for federally regulated loans.
Who provides the ALTA statement in real estate?
The title company, escrow agency, or closing attorney prepares and distributes the ALTA statement.
What does ALTA stand for?
ALTA stands for American Land Title Association.
Final thoughts on your ALTA settlement statement
Understanding your ALTA settlement statement brings clarity and confidence to closing day. If you have questions about any line item—or want help reviewing your documents—reach out to your title or escrow team before signing. They’re there to ensure a smooth, transparent transaction from start to finish.
The post What Is an ALTA Settlement Statement? appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More.
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