ALTA (American Land Title Association) Closing Disclosure Statements

Last modified November 27, 2023

An ALTA settlement statement, also known as the ALTA Settlement Statement or ALTA HUD-1, is a document used in real estate transactions, particularly for residential or commercial property sales in the United States. ALTA stands for the American Land Title Association, a national association that represents title insurance companies and professionals in the real estate industry.

The ALTA settlement statement is a standardized form that outlines the financial details of a real estate transaction. It typically includes information such as:

1. Buyer's and seller's information: names and contact details of the buyer and seller.

2. Property information: description of the property being sold, including its address and legal description.

3. Transaction details: the sale price, loan amount, and any adjustments or credits.

4. Closing costs: A breakdown of all costs associated with the transaction, including but not limited to:

  • Title insurance premiums
  • Recording fees
  • Escrow fees
  • Attorney fees
  • Real estate agent commissions
  • Prorated property taxes
  • Homeowners association dues
  • 5. Funds at Closing: This section details the amount of money the buyer must bring to the closing, as well as any funds that will be disbursed to the seller.

    6. Loan information: If the transaction involves a mortgage loan, this section provides details about the loan, including the interest rate, loan amount, and other terms.

    7. Summary of the transaction: A summary of the total amounts due from the buyer and payable to the seller at closing.

    The ALTA settlement statement is typically prepared by the title company or closing agent and is provided to both the buyer and seller before the closing of the real estate transaction. It helps ensure transparency and clarity regarding the financial aspects of the transaction for all parties involved.