What is the purpose of a closing statement in a real estate transaction?

The purpose of a closing statement in a real estate transaction is to summarize the transaction and disclose the final costs associated with the sale. This document is essential as it provides a detailed account of all the financial aspects of the transaction, including the sale price, closing costs, any adjustments, deposits, and credits to each party involved. By breaking down these costs, the closing statement ensures that both the buyer and seller have a clear understanding of their financial obligations and entitlements before the transaction is finalized. This transparency helps prevent misunderstandings and disputes at closing, making it a critical component of the real estate transaction process.

The other options relate to aspects of real estate transactions but do not encapsulate the primary function of a closing statement. Presenting the property's historical title pertains more to title searches and title insurance, outlining financing options focuses on the financial preparations before a transaction, and confirming home inspection results relates to the condition of the property rather than the financial closing process.