What is the role of a closing statement?

The closing statement serves a crucial function in the property sale process by summarizing all final costs and transactions associated with the sale. It provides a detailed breakdown of the financial aspects of the real estate transaction, including the purchase price, closing costs, taxes, credits, and any adjustments made to ensure that both the buyer and seller are clear on what is being exchanged financially. This document is vital for both parties to review prior to closing, as it ensures transparency and clarity regarding how much money is being exchanged and any other financial responsibilities being assumed.

In contrast to the other options, the closing statement is not focused on listing potential buyers or detailing a specific offer made on the property; these tasks are typically handled in earlier stages of the transaction. It also does not serve the purpose of property appraisals, which are conducted separately to assess a property's value rather than summarize costs related to a sale.