What is the purpose of a real estate settlement statement in North Carolina?

The real estate settlement statement serves a vital role in the closing process of a property transaction in North Carolina. Its primary function is to provide a detailed and transparent account of all financial transactions that occur during the closing. This includes a breakdown of costs related to the sale, such as the purchase price, closing costs, loan origination fees, title insurance, and other expenses that both the buyer and seller incur. It offers a comprehensive overview that helps all parties involved verify the accuracy of the costs and ensure that all financial obligations have been met prior to the transfer of property ownership.

This level of detail not only promotes clarity and understanding between the buyer and the seller but also aids in compliance with real estate regulations and ensures that any necessary disclosures have been fulfilled. By presenting all financial information in a structured format, the settlement statement mitigates potential disputes that might arise post-closing regarding financial responsibilities.

Other options do not capture the full scope of the settlement statement's purpose; summarizing property taxes may be included within a settlement statement but is not the primary focus, while listing agents and outlining future property obligations do not pertain to the comprehensive financial accounting that the statement is designed to provide.