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Real Estate Closing Statement Agreement template
Real Estate Closing Statement Agreement sample


What is Real Estate Closing Statement Agreement?

Real Estate Closing Statement Agreement An agreement detailing the financial aspects of a real estate transaction, specifying closing costs, payments, and distribution of funds.



Sample template:



REAL ESTATE CLOSING STATEMENT AGREEMENT


1. Agreement Parties

This Real Estate Closing Statement Agreement (the "Agreement") is entered into on this [Date], by and among the Seller(s) [Seller's Full Name(s)], with a mailing address at [Seller's Address] (the "Seller"); the Buyer(s) [Buyer's Full Name(s)], with a mailing address at [Buyer's Address] (the "Buyer"); and the Escrow Agent [Escrow Agent's Full Name], with a mailing address at [Escrow Agent's Address] (the "Escrow Agent"). Collectively, the Seller, Buyer, and Escrow Agent are referred to herein as the "Parties."



2. Property

The property subject to this Agreement is commonly known as [Property Address], and is legally described as [Legal Description of Property] (the "Property").



3. Purchase Price

The total purchase price for the Property is [Purchase Price Amount] USD (the "Purchase Price"), as agreed upon between the Seller and the Buyer in the executed Residential Purchase Agreement and Joint Escrow Instructions (the "Purchase Agreement") dated [Purchase Agreement Date].



4. Deposits and Payment Distribution

4.1. Initial Deposit


The Buyer has previously delivered to the Escrow Agent an earnest money deposit in the amount of [Deposit Amount] USD (the "Initial Deposit") via [Method of Deposit].



4.2. Additional Deposit


Upon the satisfaction or waiver of any applicable contingencies set forth in the Purchase Agreement, the Buyer shall deliver to the Escrow Agent an additional deposit in the amount of [Additional Deposit Amount] USD (the "Additional Deposit") via [Method of Additional Deposit].



4.3. Closing Payment


At least [X] days prior to the Closing Date, as defined in the Purchase Agreement, the Buyer shall deliver to the Escrow Agent the balance of the Purchase Price, less the sum of the Initial Deposit and Additional Deposit, as well any applicable financing, if any (the "Closing Payment"), via [Method of Closing Payment].



4.4. Payment Distribution


Upon the satisfaction of the terms of the Purchase Agreement and this Agreement and the authorization of the Parties, the Escrow Agent shall distribute the funds held in escrow as follows:


a) Payment in the amount of [Closing Payment Amount] USD to the Seller.


b) Payment in the amount of [Escrow Agent's Fee] USD to the Escrow Agent for services rendered in connection with this Agreement.


c) Payment in the amount of [Any Additional Payments, Recipients, and Reasons.]



5. Closing Costs

5.1. Allocation of Closing Costs


Unless otherwise agreed in writing by the Parties, or specified in the Purchase Agreement, the closing costs shall be allocated as follows:


a) The Seller shall be responsible for the payment of the real estate commission, state and local transfer taxes, and the seller's attorney's fees.


b) The Buyer shall be responsible for the payment of loan origination fees, appraisal fees, document preparation fees, buyer's attorney's fees, and any other costs and expenses as agreed upon in the Purchase Agreement.



5.2. Proration of Expenses


Real estate taxes, insurance premiums, and any other expenses relating to the Property shall be prorated between the Seller and the Buyer as of the Closing Date.



6. Escrow Arrangements

6.1. Escrow Agent Responsibilities


The Escrow Agent shall hold the Initial Deposit, Additional Deposit, Closing Payment, and any other funds, documents, or items delivered to Escrow Agent in connection with this Agreement, in accordance with the terms of the Purchase Agreement and this Agreement. The Escrow Agent shall distribute the escrowed funds and deliver any documents or items in its possession as directed in this Agreement, subject to satisfaction of all applicable conditions and instructions.



6.2. Escrow Disputes


In the event of a dispute between the Parties regarding the disbursement of escrowed funds or documents, the Escrow Agent may retain possession of the funds, documents, or items in question until the dispute is resolved, and may seek appropriate legal remedies to resolve the dispute, such as interpleader.



7. Governing Law

This Agreement shall be governed by and construed in accordance with the laws of the United States and the state in which the Property is located, without regard to any conflicts of law principles.



8. Entire Agreement

This Agreement, together with the Purchase Agreement and any other relevant agreements or documents referenced herein, constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior understandings and agreements, whether written or oral, between the Parties relating to the subject matter of this Agreement.



9. Amendments and Waivers

No amendment, modification, or waiver of any provision of this Agreement shall be effective unless the same shall be in writing and signed by the Parties to be bound thereby.



IN WITNESS WHEREOF, this Real Estate Closing Statement Agreement is executed as of the date first above written.



SELLER


___________________________


[Seller's Full Name]




BUYER


___________________________


[Buyer's Full Name]




ESCROW AGENT


___________________________


[Escrow Agent's Full Name]

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Main Sections of a Real Estate Closing Statement Agreement


In this Real Estate Closing Statement Agreement, you will see the following sections:

  1. Agreement Parties
  2. Property
  3. Purchase Price
  4. Deposits and Payment Distribution
  5. Closing Costs
  6. Escrow Arrangements
  7. Governing Law
  8. Entire Agreement
  9. Amendments and Waivers


About each Section - Analysis and Summary:

  1. Agreement Parties : This section introduces the people involved in the agreement: the Seller, the Buyer, and the Escrow Agent. It provides their names and addresses, and collectively refers to them as the "Parties."

  2. Property : This section describes the property being sold, including its address and legal description.

  3. Purchase Price : This section states the total purchase price for the property, as agreed upon between the Seller and the Buyer in a separate Purchase Agreement.

  4. Deposits and Payment Distribution : This section outlines the payment process, including the initial deposit, any additional deposits, and the final closing payment. It also explains how the funds will be distributed among the parties involved.

  5. Closing Costs : This section details how closing costs will be allocated between the Seller and the Buyer, as well as how expenses related to the property will be prorated between them.

  6. Escrow Arrangements : This section explains the responsibilities of the Escrow Agent, who holds the funds and documents related to the transaction. It also addresses how disputes over escrowed funds or documents will be handled.

  7. Governing Law : This section states that the agreement will be governed by the laws of the United States and the state where the property is located.

  8. Entire Agreement : This section clarifies that this agreement, along with the Purchase Agreement and any other relevant documents, make up the entire agreement between the parties and supersede any previous agreements or understandings.

  9. Amendments and Waivers : This section states that any changes or waivers to the agreement must be in writing and signed by the parties involved.

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