Hud 1 Settlement Statement Form: Fill & Download for Free

There is a Wikipedia article on the form and its purposes at HUD-1 Settlement Statement - WikipediaAlways a good idea to do your own basic research before resorting to Quora.

Disclaimer: I am a not a licensed real estate professional - just a buyer and seller of residential real estate in various states including California.No. Yet it doesn't make much sense to work without a real estate professional on the purchaser side as the commissions are paid by the seller. From a seller's point of view in California and using a traditional real estate professional, you should set aside 7.2% of the purchase price to cover closing costs, which will be reflected on the HUD-1 Settlement Sheet (see below).Sure, it's 7.2% (includes 3% listing agent and 3% buyer's agent commissions) and that can be a lot of money, but that can seem like a bargain if you screw up the transaction by trying to save money.Can you hope to eliminate or reduce the commissions paid to the listing agent and the buyer's agent? Yes, you could, but you would either need to include an online service like Redfin or ZipRealty, where you get a rebate or use an attorney versed in residential real estate.Real Estate Closing RulesRegulations for real estate escrow determine the procedure by which escrow officers and other professionals handle the transfer of real property. A consumer's rights are protected under these rules to best protect the public from fraud. These guidelines are maintained and followed by escrow professionals to make each closing fair, accurate and ethical.RESPAThe Real Estate Settlement Procedures Act, or RESPA, ensures that consumers receive accurate information about mortgage settlement charges. RESPA also inhibits abusive lender practices. The act requires lending institutions to give consumers a standardized Good Faith Estimate that details loan settlement fees, origination fees and interest rates. RESPA also outlaws kickbacks to service providers that can increase the cost of settlement charges.HUD-1 Settlement SheetEscrow service providers, commonly referred to as closing agents, prepare the HUD-1 Settlement Sheet at the time of closing. This statement details the buyer's and seller's costs and credits associated with a real estate transaction. It provides a detailed breakdown of each item. RESPA requires that the HUD form be used in all real estate closings, whether a purchase or refinance. The form must be given to the borrower at least one business day before the settlement date.Escrow InstructionsEscrow agents prepare closing instructions, which must adhere to RESPA guidelines. Closing instructions detail every step of a transaction's closing process, such as documents to be signed, fees to be charged and funds to be collected. All closing instructions must be satisfied for the deed transfer to occur. Any changes to escrow instructions must be mutually agreed upon by the buyer and the seller.Neutral Third PartyIn a real estate transaction, an escrow officer must remain neutral and cannot be involved in client disputes. Clients, with the help of their real estate agents or attorneys, must resolve any disagreements on their own. Additionally, escrow officers cannot give legal advice.

It depends on whether you are the buyer or the seller. Many sellers only have their attorney prepare the deed to convey title. Their cost would be limited to the cost of preparing the deed. At the closing, the attorney handling the closing would prepare settlement statements (in most cases, a HUD form, see HUD-1 Settlement Statement - Wikipedia) showing that they will pay the seller’s attorney for preparing the deed and charge the seller for taxes required to file the deed (taxes applicable to the seller, that is).You’ve received great answers about what the attorney for the buyer does. In areas like mine, the attorney will go to the courthouse and search the records to examine the chain of title back for 60 years (our area does not have computerized title records in all counties yet). He/she will review tax assessments, review any recorded plats and compare them to any others in the title to be sure no accidents were made in subsequent plats, find out if any real estate taxes are due and owing by the seller, and review judgments to be sure the seller doesn’t have judgments levied which could attach to the property.Assuming all is well, the attorney or his/her staff will prepare the documents that the buyer needs for closing, which is usually a deed of trust (mortgage), ordering plats if no current ones are available, verifying the payoff for the seller’s existing mortgage (if any), applying for title insurance (sometimes banks require mortgagee title insurance), reviewing the seller’s deed to be sure it is proper, and other documents as may be required. As one example, if the seller has died and seller’s heirs are selling the property, the attorney will specifically look in the chain of title for inheritance certificates, wills, or other evidence of probate.If the attorney knows the heirs are selling the property and there are no documents in the chain of title to prove how they acquired title, the attorney will then prepare the proper documents to protect the buyer and show a clear title. In some cases the seller may want his/her attorney to prepare those documents which is fine, then the buyer’s attorney would only need to review them.In many cases, the attorney must prepare a draft settlement statement (HUD form) and documents required by the mortgage company/bank and send them to that company for review. This includes obtaining a payoff amount from the current mortgagee, pro-rating real estate taxes, calculating the cost of recording all required documents at the courthouse, setting up escrows, paying for inspections like termites or home inspections, realtor’s commissions, plats, and the like. The attorney reviews the real estate contract (if he/she didn’t prepare it) to see what other expenses may be involved, such as the seller paying buyer’s closing costs. The mortgage company will not release the proceeds of the loan until they review the documents to be sure everything is correct.If all of this goes well, the attorney sends a copy of the settlement statement to the buyer and the seller so they can review prior to closing and bring any funds needed to the closing, if any. Finally, the attorney will preside over the closing, answer any questions at the closing about any of the documents or settlement statement costs and then have all documents recorded in the courthouse.But he’s not finished yet! The attorney will send funds to the seller’s mortgage company to pay off the seller’s loan(s). He will disburse funds where needed, such as paying delinquent real estate taxes, paying the seller’s attorney for any expenses incurred, send the realtor’s commission check, and so on.After the documents are returned to the attorney from the courthouse, the attorney will prepare a package of documents for the mortgage company, the buyer, and in some cases, the seller. The attorney may send a check to the buyer’s mortgage company to cover initial escrow deposits, plus send the recorded deed of trust (mortgage) and other closing documents to the new mortgagee. If title insurance has been required by the mortgage company, the attorney will wait to apply for the final policy AFTER the seller’s loan has been paid off and that mortgage company releases the seller’s mortgage lien in the courthouse. He will certify to the title insurance company that the title is clear and the mortgagee has a valid first (or second, etc) lien on the property.There is a great deal of paperwork required for real estate closings. When I first went to work for an attorney, the real estate contract was one legal page, front and back. In my state today, the real estate contract used by realtors is multiple pages (5 or more), front and back, and SMALL type font! Real estate closing are much more involved than they used to be.I’m sorry this is a long answer, but frankly the attorney and his staff do a great deal of work in closings. Many attorneys in my area do not want to bother with all the paperwork, because it is time intensive and they don’t make a lot of money for all their trouble. Not putting them down, just stating the obvious. I used to help prepare all those documents when I worked as a paralegal and I know how much time and effort is required.Please keep in mind my answer is based on my experiences working for attorneys as a legal secretary and, later, as a paralegal and is not legal advice.