Proration and Closing Statements

Question 1

Closing Statement

Answer 1

A document that accounts for funds involved in a particular real estate transaction. Also called a settlement statement, a uniform settlement, or occasionally a HUD-1

Question 2

Credit

Answer 2

The amount of money paid to a party on a closing or settlement statement; the amount the party recieves

Question 3

Debit

Answer 3

The amount of money charged to a party on a closing statement; the amount the party pays

Question 4

Debit and Credit Statement

Answer 4

A type of a settlement statement used for commercial transaction settlements and residential settlements not covered by RESPA

Question 5

Proration

Answer 5

Allocating taxes, insurance, rents, and interest at settlement to determine the amount of money to be charged or credited to the buyer or seller

Question 6

Rent

Answer 6

The consideration paid under a leasehold estate for use and possession of real property