Azure Tide Realty Practice Test

The closing statement is a crucial document prior to closing a real estate transaction because it outlines all the financial details related to the sale. This document summarizes the transaction and includes information such as the purchase price, closing costs, prorated taxes, and any credits or debits to be paid at closing.

Having the closing statement allows all parties involved to review the financial aspects and ensure that everything aligns with the purchase agreement and negotiations that have taken place. This transparency is vital for preventing disputes and ensuring that both the buyer and seller understand their obligations.

While other documents like the property deed, title insurance, and inspection report play important roles in the overall transaction process, they do not encapsulate the financial terms and closing figures necessary for a successful closing as effectively as the closing statement does.