What is an Alta/Settlement Statement?

If you're in the processing of purchasing or selling a home, learn more about this statement issued by the title company.

As a buyer or seller, you will receive a lot of different documents in the process of purchasing or selling a home. The Alta/Settlement Statement (previously called the Hud-1) is sent to you by the Title Company within a few days of your closing date. This document breaks down the credits & debits due at closing & who will be paid what out of the proceeds of closing.

When will I receive the Alta?

The Alta is sent to both the buyer & the seller within a few days of closing & breaks down the credits & debits due at closing.

Both the seller and the buyer will receive separate statements with the credits & debits related to their end of the sale of the home. The Alta is provided to the buyer and seller a few days before closing, sometimes as late as the day before closing will occur. 

What is listed on the Alta?

Credits will be broken down on the statement in one column. These are the charges due from the buyer or seller at closing. Typically charges will consist of items such as property taxes & unpaid loan balances for a seller or down payment & closing costs for a buyer.

The dollar amount of credits due from the borrower at the bottom of the statement is the amount the buyer or seller will need to bring to closing to "fund" the deal.

Credits due at closing must be paid in the form of a cashier's check or Wire made out to the closing Title Company.

Debits will also be broken down on this statement in a separate column. These amounts will be debited to the buyer or seller at closing. Such debits to the buyer might include the loan amount, homeowners insurance or home warranty balances the seller paid for or for a seller this might include the proceeds from the sale of the home. While in the buyer's case, they may not be directly receiving funds to their account, the seller usually received these debits to their bank account via wire or will receive a check at closing.

The dollar amount for debits due to the borrower at the bottom of the statement, is the amount the buyer or seller will receive from closing proceeds after the deal has "funded".

Debits will be issues in the form of a check or wire to the buyer or seller.

What if I also have a Closing Disclosure?

The Alta/Settlement Statement should reflect the same information as the buyer's Closing Disclosure shows. However, what is unique about the Closing Disclosure is that it is not shared with any agent & it is issued directly to the buyer from the lender. The buyer's Closing Disclosure is not shared with the agent on the other side of the transaction. Your agent will not receive a copy of your Closing Disclosure, however they will receive a copy of your Alta/Settlement Statement.

This Closing Disclosure must be sent to the borrower 3 days before closing & will break down the details of funds at closing similarly to the Alta/Settlement Statement, but in a different format.

What if the figures are incorrect?

Should you have any questions or disputes regarding the Alta/Settlement Statement, you should direct them to the closing Title Company.

Remember, that if you are a buyer with a lender involved in the transaction, that these figures should reflect the same on your Closing Disclosure and your Alta/Settlement Statement.