What does the statement of information serve as during a real estate transaction?

The statement of information is a document used in real estate transactions primarily to assist in confirming the identity of the buyers, sellers, or other parties involved. It serves as a way to provide additional information to the title company or lender, ensuring that they have accurate details when processing the transaction. This document is particularly important in relation to title insurance, as it helps prevent issues like fraud or errors by ensuring that all parties are properly identified.

By gathering necessary personal information, such as social security numbers, aliases, and prior addresses, the statement of information aids in the title search process. This is crucial because clear title is essential for the transaction to proceed without complications. When the title company can verify identities accurately, they can assess any potential liens or claims against the property more effectively, thus protecting all parties involved in the transaction.

In contrast, the other options represent different aspects of the real estate transaction process that do not relate directly to the purpose of the statement of information. Closing costs incurred are documented through various closing statements, proof of income is typically provided through financial documents rather than a statement of information, and property inspection reports assess the condition of the property itself rather than the identities of the parties involved in the transaction.