NC ALTA Settlement Statement, Line by Line

Closing on a home means signing your name more times than you thought possible. Buyers and sellers move through a stack of documents, and even people who have done this before lose track of which form does what. One that shows up in nearly every deal is the ALTA Settlement Statement, and it's the one that spells out the closing costs for both sides.

In my 17+ years working closings across the Raleigh-Durham Triangle, I've watched this single page answer the question every client actually cares about: how much do I bring, and how much do I walk away with. Here's what each part of it means.

What the ALTA Settlement Statement actually is

The ALTA Settlement Statement lays out all the expenses and credits tied to a property deal. It comes in four versions:

1. Combined buyer and seller expenses on one form
2. Buyer Settlement Statement, with the buyer's loan-related closing fees
3. Seller Settlement Statement, with the seller's closing fees
4. Cash Settlement Statement, for simpler cash transactions

In North Carolina purchase transactions, the Combined Settlement is the one you'll see most. It shows both the buyer's and the seller's credits and debits in two columns, side by side, so the page reads clean for everyone.

The middle column carries every closing cost in the deal, with a summary at the bottom. Page two breaks that middle section down line by line. Both parties see exactly how much to bring to the table, and the seller sees how each fee moves the final payout.

One page answers the only two questions that matter: what do I bring, and what do I keep.

How it fits with the Closing Disclosure and the old HUD forms

A settlement statement is an itemized list of the costs and credits to the buyer and seller. Most residential deals today run on the Closing Disclosure, the modern replacement for the old HUD-1 and HUD-1A statements.

The Closing Disclosure

The Closing Disclosure is a five-page document. Buyers get it three business days before a mortgage deal closes. It replaces the early loan estimate, once called the good faith estimate, and details the fees the buyer should expect.

That three-day window is a regulatory requirement. It gives buyers room to review the final terms without a deadline breathing down their neck. Worth noting: the three-day rule doesn't apply to sellers.

HUD-1 and HUD-1A

The HUD-1 shows up rarely now. It was the settlement statement used to compare final transaction costs against early estimates. The HUD-1A handles deals without a seller, such as refinances or reverse mortgages. Both list similar information but differ in timing and in how much can change at the last minute.

What you'll see on the statement

Here's the breakdown of charges on a HUD ALTA Settlement Statement:

1. Financial breakdown
2. Prorations and adjustments
3. Mortgage loan fees
4. Additional loan fees (credit report and more)
5. Title fees
6. Funds held in escrow
7. Closing costs
8. Commissions and other agency fees
9. Recording and deed transfer fees
10. Mortgage payoff
11. Miscellaneous charges (inspections, survey, and more)

Financial breakdown

This section details the specifics of the sale: the final purchase price, the earnest money the buyer deposited, and the loan amount to the borrower. It also captures payments for repairs or a share of the closing costs if the seller agreed to cover them.

Prorations and adjustments

Adjustments split taxes and HOA dues fairly between buyer and seller. If the seller already paid property taxes through the rest of the year, the buyer reimburses them for the months they didn't live in the house.

Mortgage loan fees

When you buy with a loan, the mortgage loan fees deserve real attention. They shape your monthly payment and add up over the life of the loan. Know what each one is before it hits the statement.

Additional loan fees

In the loan approval process, lenders charge for running a credit report and ordering the appraisal.

Funds held in escrow

The escrow account keeps important expenses paid on time, which protects both you and your lender. The end of this section shows a figure called the aggregate adjustment, a calculation that keeps your impound account from holding more money than the law allows. Funds held in escrow cover:

• Hazard insurance
• Mortgage insurance
• City and county taxes
• Title insurance

Closing costs

Closing costs are the fees and expenses due when you buy or sell a home. They include items like appraisals, title searches, and lawyer fees.

There's no single number, since costs shift with the type of property. In general, expect to pay between 2 and 5 percent of the sale price. Build that into your budget from the start.

Commissions

Real estate agents are usually the ones who put the deal together. They guide buyers and sellers, run the negotiations, and handle the paperwork that finalizes the sale. What an agent earns turns on several things:

• Knowledge of the industry and the market
• Quality of service
• Skill during negotiations
• Skillful use of documentation for specific circumstances
• Ability to keep the client out of litigation

Recording fees

The county or state charges recording fees, and the buyer pays them. The new mortgage and deed get recorded, and those fees fall to the buyer. They can be reduced or covered by the seller if that's discussed and agreed on beforehand.

Mortgage payoff

Most sellers don't own their homes outright. The payoff section covers the money sent to the lender to release the mortgage. Fees tied to that payment can show up too, such as reconveyance fees, recording fees, wire transfer fees, and prepayment penalties if the mortgage carries them.

Miscellaneous charges

Miscellaneous charges cover outstanding expenses from the discovery of the property, your due diligence work, typically marked "POC" for Paid Outside of Closing:

• Home inspection
• Termite inspection
• Radon test
• Well test (if applicable)
• Septic inspection (if applicable)
• Survey
• Home warranty

The buyer usually pays these, though they can be negotiated over to the seller.

Are ALTA statements required

ALTA Settlement Statements aren't mandated by law. They're typically used alongside Closing Disclosures, which the Consumer Financial Protection Bureau does require.

Here's the privacy piece. The Closing Disclosures given to buyers and sellers stay separate from each other, because each holds private details like social security numbers the other party shouldn't see. That's why lenders often can't hand Closing Disclosures to real estate agents.

The ALTA Settlement Statement was built to close that gap. It carries the numbers agents and brokers need for closing without the personal detail, so it can be shared with everyone in the transaction. It also lets your agent review the closing costs closely and clear up any question you have.

How to read yours before closing day

1. Find your versionConfirm whether you're holding the Combined statement, the standard in North Carolina purchases, or a Buyer, Seller, or Cash version.
2. Check the financial breakdownVerify the purchase price, earnest money, and loan amount, plus any seller-paid repairs or closing-cost credits.
3. Trace the prorationsMake sure taxes and HOA dues split fairly for the months each party owns the home.
4. Read the fee linesWalk the loan fees, title fees, escrow, recording, and payoff so nothing lands as a surprise at the table.
5. Match it to your Closing DisclosureLine the ALTA figures up against the Closing Disclosure and bring any gap to your agent or attorney before you sign.