HUD Statement
A HUD Statement, also known as a HUD-1 Settlement Statement, is a standardized form that itemizes all charges and credits for both buyer and seller in a real estate transaction. This document shows exactly who pays what fees and how much money changes hands at closing.
Example
“The buyer carefully reviewed the HUD Statement before closing to verify all fees and charges were accurate.”
Memory Tip
Think 'HUD Statement = Honest Uniform Disclosure' - it's the standardized form that honestly discloses all closing costs.
Why It Matters
The HUD Statement provides complete transparency of all closing costs, helping you verify that you're being charged correctly and understand exactly where your money is going.
Common Misconception
Some people believe the HUD Statement is just for the buyer, but it actually shows costs and credits for both buyer and seller in the transaction.
In Practice
At closing, your attorney will review the HUD Statement line by line, showing items like your loan amount, property taxes, title insurance, and real estate commissions before you sign the final documents.
Etymology
The HUD Statement gets its name from the Department of Housing and Urban Development, which standardized this settlement form in 1976 to bring transparency to real estate closings.
Common Misspellings
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