What is a Real Estate Settlement Notice?

What is a Real Estate Settlement Notice?

1 Answer

We in the industry refer to this document as a " HUD-1."  It is basically a giant spreadsheet that shows all fees and prepaid expenses involved in a real estate transaction.  It also shows the funds being exchanged between all parties involved in the transactions, including third parties such as realtors, brokers, appraisers, title companies and others.  It also show the funds going towards setting up escrows.  If anyone is financially involved in the trasaction, whether paid before closing, or at closing, it's detailed on the HUD-1. 

I should add that this document is being revised and a new version is scheduled to go into use later this year.