Who is responsible for creating the closing statement?

The closing statement is a crucial document in a real estate transaction, detailing all the financial aspects involved in the sale, including costs and credits for both the buyer and seller. The neutral third party involved in the closing process, typically an escrow company, holds a pivotal role in facilitating the transaction and ensuring that all parties fulfill their obligations.

This neutral party is responsible for creating the closing statement because they collect and organize all the relevant financial information associated with the transaction. This includes gathering details from multiple stakeholders, like the real estate agents, lenders, and legal entities, to ensure that the statement accurately reflects all financial exchanges, fees, and adjustments. By acting as an impartial entity, escrow helps maintain transparency and fairness in the transaction, which is essential for building trust among the parties involved.

While the buyer's real estate agent, lending institution, and seller's attorney may contribute necessary information and insight regarding their respective areas, they do not compile or create the closing statement itself. Instead, they provide details that the escrow entity uses to generate the comprehensive document. This process ensures that the closing statement is balanced and reflects the true nature of the transaction, making the escrow company the correct choice for this responsibility.