HUD-1 Settlement Statement

The real estate closing is the transfer of title to a parcel of real property between the seller and the buyer, as well as between the borrower

and lender as security for the loan. Under RESPA, the settlement agent (lender’s attorney) will prepare a HUD-1 Settlement Statement that

discloses all the costs associated with the transaction. This document allows the borrower to know specifically the cost of the loan and to whom

the fees are being allotted.
Prepare a HUD-1 Settlement Statement for the transaction described below involving Patricia and Mark Franack and sellers and Zulay and Hector

Baez as buyers

Closing date: May 12, 2011
Sellers: Patricia F. and Mark Franack
Buyers: Zulay and Hector F. Baez
Location: 123 Nance Drive, Anytown, ST 06106
Purchase price: $257,000.00
Lender: Savings Bank of Niford, 1 Corporate
Way, Anytown, ST 23456
Mortgage Amount: $175,000
Interest rate: 6%
Term: 30 years
Payment: $1,049.12
Late Charge: 4% after 15 days
Location: 123 Nance Drive, Anytown, ST 06106
Purchase price: $257,000.00
Title Report
• Property Address: 123 Nance Drive, Anytown, ST 06106
• Current Owners: Patricia F. and Mark Franack
• Estate or interest: Fee simple absolute
• Source of Title: Warranty deed in survivorship from Ronald L. Carson and Patricia Carson dated and recorded December 27, 1987 in Volume

814, Page 97 of the Anytown Land Records.
• Description of Property: See image below
• Outstanding Encumbrances:
o 1. Taxes to the Town of Anytown on the list of October 1, 2010, not yet due and payable.

• 2. Mortgage in favor of Countrywide Mortgage Co. dated & recorded 12/27/87 in Volume 814 Page 99. The principal amount of the mortgage

is $137,000.
• 3. Easement in favor of Conn. Light & Power Co. dated & recorded 1/23/69 in Volume 745 Page 67.

Prepare a HUD-1 Settlement Statement for this transaction, using the previous information and the additional information listed below.
• 1. Deposit: $5,000
• 2. Taxes: 10-1-10 List due July 2011 and January 2012 = $4,266.96 = $355.58 per month; $4092 for 10-1-09 list = $11.21 per diem
• 3. Oil 275 gallons @$2.16 per gallon
• 4. Real Estate Commission = 6%; co-broke The Real Estate Agency and Century 22.
• 5. Existing mortgage to be released by Society for Lending; $137,126.32 through May 10, 2011; $30.05 per diem.
• 6. New Mortgage: Savings Bank of Niford $270,000 at 6% plus 1 point paid, 1 point due. Per diem interest $44.38; application and

appraisal fee $325, paid outside of closing; credit report fee $75 due.
• 7. Lender’s Attorneys Fees: Alice Justice, Esq., Justice & Honor, P.C., 1 Office Park, Hartford, CT 06103, $300 document preparation,

$250 settlement fee.
• 8. Buyers’ Attorneys Fees: Attorney Valeria Matthews, $150 title examination, $500 personal representation.
• 9. Sellers’ Attorneys Fees: Attorney Chris Pines, $600 personal representation.
• 10. Recording fees: 2 page warranty deed, 16 page mortgage deed, 1 page release of mortgage; (Collect recording fee for release at

closing).
• 11. Hazard insurance premium = $528/year to Security Insurance Company.
• 12. Title Insurance Policy = $1164 for Owners’ Policy; $898 for Lender’s Policy.
• 13. Bug-Off Corp. $100 for pest inspection
• 14. Sound Home, Inc. — structural inspection $400.
• 15. Susie Surveyor, A-2 Survey $1200.
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