The Closing Itself
How to Read a Florida Settlement Statement / ALTA
Direct answer
A Florida settlement statement — often an ALTA statement — is the title company’s balance sheet for the closing. Buyer and seller each have debits (charges) and credits (amounts already paid or coming from someone else). The buyer’s side ends at cash to close. The seller’s side ends at net proceeds. Time to Close Title will not disburse until those columns add up and good funds are in. A financed purchase also has a lender Closing Disclosure. That form is the lender’s. The settlement statement is what we use to pay payoffs, recording, commissions, and the seller. They should tell the same story on title charges. They are not the same document.
Key takeaways
- Debits are charges. Credits are money already in or coming from someone else.
- Buyer cash to close and seller net are the two numbers most people actually need.
- The lender’s Closing Disclosure is not the settlement statement. Title still needs a balanced statement to disburse.
- Earnest money, the loan, and payoffs have to land on the correct side. A missing payoff is how a file goes dry.
- Ask us to walk the title and recording lines the day before you sign.
What is a settlement statement — and what is an ALTA?
It is the closing agent’s ledger. ALTA is the American Land Title Association form many Florida title companies use. Older files used a HUD-1. The job is the same: show every dollar in and every dollar out so the file can be disbursed.
On a cash closing this is usually the only numbers form. On a financed purchase the lender also issues a Closing Disclosure. We still prepare a settlement statement so payoffs and proceeds are not guessed from the CD alone.
| Line / column | Buyer is looking for | Seller is looking for |
|---|---|---|
| Purchase price | A debit — what the house costs | A credit — what the house sold for |
| Earnest money | A credit — already on deposit | Usually not extra cash in their pocket |
| New loan | A credit — the lender’s funds | Not a seller line |
| Payoffs / liens | Sometimes a buyer charge if assumed | Debits that come off the top |
| Title premiums & settlement | Per the contract split | Per the contract split |
| Bottom line | Cash to close — what to wire | Net proceeds — what they leave with |
How do debits and credits work?
A debit is a charge to that party. A credit is money that party already put in, or money coming from someone else. The purchase price is a buyer debit and a seller credit. Earnest money the title company is holding is a buyer credit — see what escrow is.
Prorations (taxes, HOA dues, rents) shift days between the parties. Recording and documentary stamp tax follow Florida rules and the contract. We do not invent those amounts. If a line does not match the contract or a written payoff, ask before you sign.
Balance
Buyer columns and seller columns have to add up.
Payoffs
Written letters, not verbal balances.
Funds
The wire in the account has to match cash to close.
Why doesn’t this look like my Closing Disclosure?
The CD is built for the loan. It has loan terms, projected payments, and a three-business-day wait. The settlement statement is built for disbursement. If a title premium or recording amount does not match, call us. We sent the lender those figures — or we need to send an update.
A net sheet you got when you listed is an estimate. The settlement statement is the file. HOA estoppels, municipal payoffs, and a changed loan amount are why the two diverge. That is also how a signing becomes a dry closing if the money is short.
Find cash to close or seller net
That is the number you wire or the number you expect in your account.
Check earnest money and the loan
The deposit we hold should be a buyer credit. A new loan should show as incoming funds.
Read every payoff
Mortgages, judgments, and association amounts need a written letter.
Walk the title lines with us
Owner’s premium, search, settlement, and recording should match what we quoted.
Can Time to Close Title walk me through my statement?
Yes. Call (352) 792-1214 or contact us with the draft. We close purchases, refinances, and cash files from 3087 Anderson Snow Road in Spring Hill.
Frequently asked questions
Is the ALTA settlement statement the same as the Closing Disclosure?
No. The CD is the lender’s form. The settlement statement is the title company’s disbursement ledger. Financed files often have both.
Why is my cash to close higher than the net sheet?
A net sheet is an estimate. Payoffs, prorations, HOA amounts, and insurance can move. The settlement statement is the current math.
Who prepares the settlement statement in Florida?
The closing agent — on our files, Time to Close Title. The lender prepares the Closing Disclosure.
What if a line on the statement is wrong?
Call us before you sign. We will not disburse around a number that does not add up.
Do I still get a settlement statement on a cash deal?
Yes. That is usually the only numbers form. There is no Closing Disclosure on a true cash purchase.