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Seller - ALTA/Settlement Statement

Friday, August 23, 2019   /   by Barry Owen

Seller - ALTA/Settlement Statement

The Title Company:


  • issues the Title Insurance Policy

  • oversees accurate execution of the required documents from the Mortgage Lender

  • Prepares and records the Deed

  • AND

  • accounts for, receives, and disburses all of the funds for the transaction.


This is a highly regulated process. The primary instrument (form) that defines the accounting of most Real Estate Transactions involving a Mortgage is the ALTA Settlement Statement.

We quote from the ALTA Website:

American Title Land Association - ALTA Settlement Statements

"ALTA has developed standardized ALTA Settlement Statements for title insurance and settlement companies to use to itemize all the fees and charges that both the homebuyer and seller must pay during the settlement process of a housing transaction. Settlement statements are currently used in the marketplace in conjunction with the federal HUD-1. The ALTA Settlement Statement is not meant to replace the Consumer Financial Protection Bureau's Closing Disclosure, which went into effect on Oct. 3, 2015. Four versions of the ALTA Settlement Statement are available."

The Title Company prepares the ALTA and the Lender reviews and approves it. Typically, we (Seller & Seller's Agent) will receive this a day or 2 prior to closing. This flow works well because the Buyer, Seller, and agents know the terms of the transaction and often can quickly discover any errors. 

The main things we look for:


  • Correct Address

  • Correct names

  • Selling Price - Yes - This can be wrong if the Title Company is missing a counter offer or amendment

  • Buyer Closing Costs and Prepaid Expenses to be paid by Seller

  • Other concessions relating to Inspection Resolution

  • Real Estate Commissions for each agent.

  • Proper Hazard Insurance

  • Proper Prorations

  • The bottom line "Cash from Closing" Proceeds


Receiving this document early is HUGE because all parties can review and catch errors BEFORE sitting at the closing table.

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