The ALTA settlement statement is an important document that spells out all the closing costs involved in buying and selling a house. This document is signed by both the seller and the homebuyer, and it lists out every cost incurred during the transaction.
This document used in the closing process helps keep track of all the money disbursed by the settlement agent during the sale and ensures that there are no hidden fees.
This is different from a closing disclosure and a HUD-1 statement.
ALTA is an acronym that stands for American Land Title Association.
American Land Title Association (ALTA) is a trade group founded in 1907, that represents over 6,000 title insurance companies and escrow agents.
It holds its members to a code of ethics in order to maintain a high trust in the real estate industry.
There are four (4) versions of ALTA Settlement Statements:
The combined settlement statement is a document that has all of the transaction details for both the buyer and the seller together.
This one is used solely for all cash transactions that have no loans.
This is the version provided solely to the borrower and includes only information pertaining to the buying side of the transaction.
This is the version provided solely to the seller and includes only information pertaining to selling side of the transaction.
The settlement agent usually prepares the statement.
In many states, it is very common for the title company to be the settlement agent.
While in other states one of the closing attorneys will be the settlement agent.
All parties involved usually receive a copy of the ALTA settlement statement.
That includes the buyers, the seller, the real estate agents and any lenders involved.
It is NOT required by law. It is usually given as a way for parties other than buyer and seller to see confirmation of the sale.
Real estate agents are the main people who will request a copy of the ALTA since realty brokerages have to keep records for at least seven years.
No, it is different.
Before the ALTA came into use, the HUD-1 statement was a two-page form that was required by law and was the main closing document.
There are many seasoned veterans of the real estate industry who to this day use the term HUD-1 to refer to the ALTA closing statement even though they are not the same.
ALTA paperwork was introduced because of TRID.
TRID is an acronym for TILA-RESPA Information Disclosure.
It was introduced by the Consumer Financial Protection Bureau (CFPB) in November 2013 to make it easier for home buyers to understand the agreements they were signing when buying a home.
In addition to being simpler, TRID rules also help protect consumers because it requires lenders to disclose certain types of information upfront.
This means that if a lender doesn’t provide the right information, the consumer can file a complaint with the CFPB.
The ALTA Settlement Statement is broken down into several sections.
Each part was designed to make it easier for all parties involved to see that each and every penny disbursed is accounted for.
The following is a list of the sections and the info they provide:
The form starts out with the basic info needed for the transaction.
File No./Escrow No.
Date & Time:
Officer/Escrow Officer:
Settlement Location:
Property Address:
Buyer:
Seller:
Lender:
Settlement date:
Disbursement Date:
Additional dates per state requirements:
Sale Price of Property
Personal Property –
Deposit including earnest money
Loan Amount
Existing Loans Assumed or Taken Subject to
The amounts of any loans the buyer is taking over or “assuming” from the seller
Seller Credit
Excess Deposit
For example, if the seller has already paid the city or town the property taxes for the quarter, the buyer would have to credit the seller for the remaining days of the quarter from the date of the closing.
In most states, the seller is paying for the real estate commission of both the owner listing agent and the buyer’s agent.
Overall, the ALTA settlement statement is important because it accounts for every penny of the real estate transaction.
Whether you’re buying or selling a home, you should know the closing costs so you can show your accountant during the tax season.
Q: Are the terms of the loan on the ALTA?
A: No. The mortgage terms can be seen on the 5 page Closing Disclosure form which buyers must receive at least 3 days prior to the closing.
No. If you need an amortization schedule, look for it in the loan disclosures you must have received.
It is the term used for the settlement statement that is generated from a loan agreement and it is the document that shows the final details of the loan. The Alta statement is the last page of the loan agreement and the borrowers sign this document to complete the loan process. Check the difference between the loan estimate and the final loan value. Your real estate attorney will take on the responsibility of checking everything else such as the housing regulations, community guidelines, ownership names and the deed. Altas are used when there is a dispute regarding the terms of the loan agreement. The borrowers may not agree with the terms of the loan agreement and hence they filed the Alta. The Alta statement is the document that shows the final details of the loan agreement. The lenders sign the Alta document and they will send the Alta statement to the borrowers. The closing forms are a conjunction of the HUD-1 and FHA closing statements. The Alta statement breakdown includes all the details of the loan agreement such as the total amount of the loan, the interest rate, term of the loan, the amount of the down payment, the number of months for the first installment and the amount of monthly installments. It also includes the date of maturity of the loan. A settlement statement is the final agreement between the lender and the borrower. The settlement statement includes all the details of the loan such as the loan amount, the amount of down payment, the repayment schedule, the interest rate, and the date of maturity of the loan. It also includes the other details like the amount of the first installment, the number of monthly installments, the total amount of the loan, the amount of the monthly installment, the amount of the late fee, and the amount of the attorney’s fee and real estate agent commission at the closing table. The Alta settlement statement works on the basis of the loan agreement. The borrower will pay the first installment of the loan amount to the lender and the lender will send the Alta statement to the borrower. After the borrower receives the Alta statement, he will have to read the details and if the borrower is satisfied with the terms of the Alta statement, then he will sign the Alta document. Real estate closing is one of the most important events of life, as it is the last step in a housing transaction. The real estate market has gone through many changes in the marketplace and it is now much tougher than before. The reason for this is that the market is flooded with fake buyers and sellers and the real estate agents are not showing up for the closing. There are some things that you need to know about these situations and what you can do in order to get your money back and to get your home closed. First thing you need to know is that these situations happen to many buyers and sellers and they happen in many states. So, you can face the same situation with your own property. What to do when your Real Estate Agent is not showing up for the Closing. First of all, you should understand that for both sides, seller and buyer, the real estate agents are only there to serve their clients. If you are not happy with the agent, then you can leave the agent and choose another one. The best advice is to take a deep breath as the title company is experienced with the settlement process. They can go over every single detail of each credit and debit on the settlement sheet. If your agent is not showing up for the closing, then you need to do the following. Call your attorney and the title company. Find out what is happening and make a plan to find the reason. Contact your lender and let them know what is happening. Give your real estate agent two days to contact you and show up for the closing. If you are not getting any adjustment of the calculation on the loan, then you can start contacting other agents and ask them to refer you to someone else.I hope that the information shared with you will help you to understand these situations and if you still don’t get the agent, then you can contact their broker and the organization they are licensed under to find the solution. The Alta statement will be valid for 7 days and after this period, if the borrower is not satisfied with the Alta statement, he can raise a complaint about anything that seems incorrect. The complaint is raised by the borrower against the lender and he will get a new Alta statement within a week. Post the closing process, if there are any other items such as the wrong county taxes or street address and zip that catch your eye, be sure to reach out to the title insurance company immediately. If needed, ask them for a sample letter to mail to your lender with their logo at the top. Make sure the mortgage account number is referenced. Altas are the closing documents that are generated by the lenders and the borrowers after the completion of the loan. These documents are important for the borrowers as they are the final documents that will determine the amount of the loan and the terms of repayment.
1. A real estate settlement statement is a document that itemizes all of the fees and charges that are required in order to complete a real estate transaction. 2. The settlement statement is also known as the HUD-1 form, which is a standard government form that is used in all real estate transactions. 3. The settlement statement is prepared by the settlement agent, who is typically a title company or an attorney. 4. The settlement statement will itemize all of the fees and charges associated with the transaction, including the purchase price, loan fees, title insurance, escrow fees, and other miscellaneous charges. 5. The settlement statement will also show the prorated taxes and insurance for the property, as well as any HOA dues or other special assessments. 6. The buyer and seller will each receive a copy of the settlement statement at least 24 hours prior to the closing of the transaction.
1. The average cost of an ALTA Settlement Statement is $600. 2. The average cost of an ALTA for a home purchase is $1,200. 3. The average cost for a refinance is $500. 4. The average cost for a home equity loan is $300. 5. The average cost for a home equity line of credit is $200. 6. The average cost for a reverse mortgage is $100. 7. The average cost for a short sale is $50. 8. The average cost for a deed in lieu of foreclosure is $25. 9. The average cost for a loan modification is $0.
