What Is the ALTA Settlement Statement? How to Read It

The ALTA Settlement Statement is the settlement agent’s complete accounting of every dollar moving at closing. It exists alongside the Closing Disclosure, not instead of it, and it frequently shows detail the CD compresses.

The four versions

• Borrower/Buyer — your side only
• Seller — the seller’s side only
• Combined — both sides, side by side
• Cash — for transactions without financing

Agents often prefer the Combined version because it shows the whole transaction. If you only receive your own side and want to understand the full picture, you can ask.

How it differs from the Closing Disclosure

The Closing Disclosure is mandated by TRID rules, must be delivered three business days before closing, and is designed for comparison against your Loan Estimate.

The ALTA statement is the settlement agent’s working document. It typically itemises more finely — separating out individual title endorsements, courier fees, and per-item recording charges the CD groups together. Where the CD says “Title — Lender’s Title Insurance $525,” the ALTA statement may break that into base premium and three named endorsements.

Both should reconcile to the same bottom line. If they do not, ask before wiring anything.

Reading it line by line

The debit and credit structure

Each side has debits (amounts you owe) and credits (amounts credited to you). The difference is what you bring or receive.

For a buyer, the purchase price is a debit; your earnest money deposit and loan proceeds are credits.

Prorations

Property taxes, HOA dues and sometimes utilities are split between buyer and seller as of the closing date. Whether taxes are paid in arrears or in advance in your jurisdiction determines who credits whom, and this catches people out — in an arrears state the seller credits you for taxes accrued but not yet billed.

Check the proration date matches your actual closing date. An error here is common and easily corrected before funding.

Prepaids and reserves

Distinct items that look similar:

• Prepaid interest — interest from closing to the end of the month. Closing on the 3rd means paying ~28 days of interest upfront; closing on the 28th means ~3 days.
• Prepaid insurance — the first full year of homeowners insurance, typically paid at closing
• Escrow reserves — a cushion the lender collects to seed your escrow account, often two to three months of taxes and insurance

Reserves are not a fee. That money remains yours, held in your escrow account. It still has to be brought to closing, which is why cash-to-close exceeds down payment plus closing costs.

Title charges

Premiums, endorsements, search, examination, settlement or closing fee, and sometimes a separate abstract fee. If you shopped for title, check the figures match the quote you accepted.

Recording and transfer

County recording fees for the deed and mortgage, plus any state or local transfer tax, deed stamps or mortgage tax. These vary enormously — negligible in some states, several thousand dollars in others.

What to check before you sign

1. Names and property address spelled correctly
2. Loan amount and rate match your Closing Disclosure
3. Earnest money appears as a credit
4. Any negotiated seller credit appears, in the agreed amount
5. Proration date matches the closing date
6. Title fees match the quote you accepted
7. Bottom-line cash to close matches the CD
8. Wire instructions verified by phone, using a number you looked up independently

That last item is not paperwork advice. Wire fraud at closing is the most common way people lose large sums in a real estate transaction, and fraudulent instructions arrive by email looking entirely legitimate. Never trust wire details sent to you — always confirm by voice on a number you sourced yourself.

Common questions