The ALTA Settlement Statement is a standardized statement disclosure form used when selling a home to provide a complete breakdown of all monetary payments and receipts at closing. This document was created by the American Land Title Association (ALTA) to provide a transparent accounting of all parties involved in the sale.
The primary purpose of the ALTA Settlement Statement is to ensure that all parties clearly understand how the final numbers were calculated, including costs associated with the purchase price, loan fees, title fees, taxes, fees, etc.
The ALTA statement is prepared by the title company or escrow agent and is used to ensure that each party receives or pays accurately on the closing date.
ALTA Settlement Statement and Closing Disclosure Comparison
While the ALTA statement provides a complete financial picture of both parties, the federally mandated Closing Disclosure (CD) is a document required only by buyers for most mortgages.
Main difference:
Closing Disclosure Available only to Borrowers. Required by the CFPB under TRID regulations. Disclose loan terms, payment schedule, and closing costs. The ALTA settlement statement shows debits and credits for both the buyer and seller. Not regulated by federal law. Widely used in traditional cash transactions, investment transactions, and commercial transactions.
In many closings, the buyer receives both documents, but the seller typically receives only the ALTA statement.
Who prepares and provides ALTA settlement documents?
A title company, escrow agent, or closing attorney prepares an ALTA settlement statement.
Recipients typically receive the draft 1 to 3 days before closing, but some states and financial institutions may provide it sooner or later depending on their file readiness. An updated version will be sent to you once the final numbers are confirmed.
What is included in the ALTA settlement document?
The ALTA form breaks down all amounts into clear categories so buyers and sellers can see exactly how their final payment was calculated. Standard sections include:
Purchase price and earnest money credits Loan fees (origination, underwriting, appraisal, points) Title insurance premiums and closing fees Real estate commissions Taxes, HOA dues, prorations Government recording fees Mortgage, lien, or judgment payments Miscellaneous expenses (home warranty, inspections, pest inspections)
Proration and adjustment
Some costs, such as property taxes and HOA dues, are shared between the buyer and seller. The ALTA form prorates these based on the deadline, ensuring each party pays their fair share.
Loan fees and foreclosures
For financing transactions, loan fees may include:
Origination and underwriting fees Discount points Appraisal and credit report fees Prepaid interest
If the lender requires an escrow or foreclosure account, buyers can also prepay property taxes, homeowners insurance, or mortgage insurance.
Title fees and fees
This section provides an overview of:
Owner and Lender Title Insurance Premiums Settlement/Escrow Fees Title Search and Examination Fees Real Estate Brokerage Fees
Government and recording fees, compensation, and other costs.
This part lists:
County recording fees for deeds and mortgages Transfer taxes (if applicable) Payments on existing mortgages or liens Additional fees such as home warranties, surveys, inspections, etc.
Subtotals, totals, credits and debits
At the end of the statement, a summary of the form is provided as follows:
All debits (amounts due) All credits (payments or funds already provided) Final cash at closing for buyer or proceeds cash for seller
This section makes sure every dollar counts.
How to read the ALTA settlement letter
Step-by-step review method:
Start with the header. Check the property address, name, and closing date. Check purchase price and credits. Make sure your earnest money deposit, seller credit, and lender credit are included. Check your loan fees: Make sure your loan fees match your lender’s estimate. Check ownership fees. Compare the quoted premiums and rates. Check prorations: Ensure taxes and HOA dues are calculated correctly. Payoff Verification: Verify that old mortgages or liens are accurate. Check your totals: Make sure your cash or seller’s proceeds to closing match your expectations.
What to look for and why it matters
When reviewing ALTA statements, keep the following in mind:
Inaccurate prorations Missing or duplicate fees Credit fraud Unexpected lender or title claims Inaccurate payoff amounts
Careful review protects both parties from errors that could delay closing or cause financial problems down the road.
ALTA Settlement Statement Version
ALTA offers multiple formats, including:
Buyer’s Statement Seller’s Statement Consolidated Statement Lender’s Version
The title company selects the best version for the transaction.
When will I receive my ALTA settlement statement?
Most parties will receive their ALTA statement a few days before closing, with all invoices, payment amounts, and lender figures finalized. The final version will be signed upon completion.
Tips for reviewing before closing
Please request a statement as soon as possible. Compare the numbers to your lender’s estimate and listing agreement. Check the daily rate based on your state’s tax calendar. Please have Redfin’s agent or attorney verify accuracy. Report any discrepancies to the title company immediately.
ALTA FAQ
Is an ALTA statement the same as a termination statement?
yes. “Financial statement” is a general term often used to refer to an ALTA settlement report that itemizes the financial breakdown of a transaction.
What is the difference between HUD and ALTA Settlement Statements?
HUD-1 was used for most housing transactions prior to 2015. Most home closings now use ALTA statements for clarity and consistency, and buyers also receive closing disclosures for federally regulated loans.
Who provides ALTA statements in the real estate sector?
Your title company, escrow agent, or closing attorney will prepare and distribute the ALTA statement.
What does Alta stand for?
ALTA stands for American Land Title Association.
Final Thoughts on the ALTA Settlement Statement
Understanding the ALTA Settlement Statement will provide clarity and confidence on closing day. If you have questions about an item or need help reviewing documents, contact your title or escrow team before signing. It exists to ensure a smooth and transparent transaction from start to finish.
