ALTA Settlement Statements Explained

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At Real Estate Two70, the final numbers at closing should never be a surprise. One of the most important documents used to confirm those numbers is the ALTA Settlement Statement.

This page explains what ALTA Settlement Statements are, who prepares them, who uses them, what they include, and how they fit into an Idaho real estate transaction from contract to closing.

See Buyer ALTA See Seller ALTA

What Is an ALTA Settlement Statement?

An ALTA Settlement Statement is a standardized closing document created by the American Land Title Association (ALTA) that itemizes all financial aspects of a real estate transaction.

It shows, in a clear line-by-line format:

  • Purchase price
  • Loan amounts
  • Credits and debits
  • Prorations
  • Closing costs
  • Net amount due from the buyer or paid to the seller

In Idaho, ALTA statements are most commonly used in transactions involving financing, though they may also be used in cash transactions depending on the title company.

What an ALTA Settlement Statement Is Not

ALTA Settlement Statements are often confused with other disclosure documents.

  • They are not a Loan Estimate
  • They are not a Closing Disclosure
  • They are not a contract or amendment
  • They do not change negotiated terms

Instead, they reflect the financial outcome of the already-agreed-upon contract and lender terms.

Why ALTA Settlement Statements Exist

ALTA statements were developed to create consistency and transparency at closing.

They:

  • Provide a standardized format across transactions
  • Reduce confusion for buyers, sellers, and lenders
  • Clearly separate buyer and seller costs
  • Help ensure compliance with lender and title requirements

Because title companies handle escrow and disbursement of funds, the ALTA statement becomes the authoritative financial summary at closing.

Who Prepares the ALTA Settlement Statement?

ALTA Settlement Statements are prepared by the title and escrow company handling the transaction.

The title company gathers information from:

  • The purchase and sale agreement
  • Amendments and addenda
  • The lender
  • Real estate agents
  • HOAs, tax authorities, and utility providers

Because many parties contribute information, accuracy depends on early review and clear communication.

Who Uses the ALTA Settlement Statement?

Multiple parties rely on the ALTA statement:

  • Buyers — to confirm funds needed to close
  • Sellers — to confirm proceeds and deductions
  • Lenders — to verify loan disbursement accuracy
  • Title companies — to balance escrow
  • Real estate agents — to confirm contract compliance

It is one of the final documents reviewed before funds are released.

Buyer vs Seller ALTA Settlement Statements

ALTA statements are typically prepared in two versions:

Buyer ALTA

The buyer’s ALTA shows:

  • Purchase price
  • Loan amount(s)
  • Buyer closing costs
  • Credits from the seller
  • Prorated taxes and HOA dues
  • Final cash to close

Seller ALTA

The seller’s ALTA shows:

  • Gross sales price
  • Mortgage payoffs
  • Real estate commissions
  • Seller-paid closing costs
  • Prorations
  • Net proceeds to seller

Each party only sees the statement relevant to them.

Key Sections of an ALTA Settlement Statement

Purchase Price & Loan Information

Confirms the agreed purchase price and any financing involved.

Credits & Debits

Shows how money moves between buyer and seller, including concessions and repairs credits.

Prorations

Allocates items like:

  • Property taxes
  • HOA dues
  • Rents (if applicable)

Closing Costs

Details lender fees, title fees, escrow charges, recording fees, and taxes.

Net Amount

Shows the final cash required from the buyer or proceeds paid to the seller.

When ALTA Settlement Statements Are Reviewed

ALTA statements are typically reviewed:

  • Shortly before closing
  • At signing
  • As part of final lender approval

Errors discovered late can delay closing, so early review is important.

Common Questions and Issues With ALTA Statements

  • Missing or incorrect credits
  • Incorrect prorations
  • Commission discrepancies
  • Unexpected HOA or tax charges

Most issues are correctable — but only if identified before funds are disbursed.

How Real Estate Two70 Approaches ALTA Settlement Statements

At Real Estate Two70, we treat ALTA Settlement Statements as a verification tool, not a formality.

We help clients:

  • Understand where each number comes from
  • Confirm agreement terms are reflected correctly
  • Identify discrepancies early
  • Close with confidence, not confusion

We encourage buyers and sellers to ask questions before signing — not after.

Frequently Asked Questions

Is the ALTA Settlement Statement the same as the Closing Disclosure?

No. The Closing Disclosure is a lender document. The ALTA is prepared by the title company and reflects the final escrow balance.

Can numbers change on the ALTA statement?

Yes. Prorations and final fees may change up until closing.

Do buyers and sellers sign the ALTA?

Often yes, though practices vary by title company.

What happens if there’s an error?

Errors should be corrected before closing. Post-closing corrections are more complex.

Related Idaho Closing & Financing Resources

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