A closing statement is a document that outlines the final financial details of a transaction, typically in real estate or business sales. It summarizes the costs and credits associated with the sale, ensuring that all parties understand the financial implications of the transaction.

Characteristics
– Detailed Breakdown: The closing statement provides a line-by-line account of all financial aspects, including purchase price, adjustments, and closing costs.
– Final Accounting: It serves as the final accounting of funds exchanged between the buyer and seller, detailing what each party owes or is owed.
– Legal Requirement: In many transactions, a closing statement is a legal requirement to ensure transparency and accountability.
– Signatures Required: Both parties typically sign the closing statement, indicating their agreement to the terms outlined within it.

Examples
– In a real estate transaction, the closing statement may include items such as the sale price, property taxes, title insurance, and any repairs agreed upon by the buyer and seller.
– In a business sale, the closing statement might detail the purchase price, any outstanding debts, inventory values, and adjustments for working capital.