ALTA Settlement Statement: A Seller’s Perspective

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The ALTA Settlement Statement is the final accounting of your sale. It shows exactly where every dollar goes at closing— purchase price, payoffs, fees, credits, and your net proceeds. Understanding this document before signing helps sellers avoid last-minute surprises and close with confidence.

See Buyer ALTA See Seller ALTA

What an ALTA Settlement Statement Is

The ALTA Settlement Statement is a standardized closing document used nationwide. It replaces older HUD-style forms and provides a clear, line-by-line breakdown of all financial activity in the transaction.

  • It is: the final ledger for the sale
  • It is not: an estimate (that role is served by a net sheet)
  • It is prepared by: the escrow officer

Sellers typically receive a draft prior to closing and a final version at signing.

When Sellers Receive the ALTA

A preliminary ALTA is usually issued shortly before closing once loan figures, title charges, and payoffs are finalized. The final ALTA is signed at closing.

Reviewing the draft ALTA before signing is strongly recommended so any corrections can be made without delaying funding.

How the ALTA Is Organized

While formatting can vary slightly, most ALTAs follow the same structure.

Section 1: Transaction Summary

  • Purchase price
  • Total credits and debits
  • Seller’s net proceeds

This is the snapshot view. It should align with what you expect based on your accepted offer and negotiations.

Section 2: Seller Credits

Credits increase the seller’s side of the ledger. Common seller credits include:

  • Purchase price
  • Prorated rents (if applicable)
  • Buyer funds credited toward seller payoffs (context-specific)

Section 3: Seller Debits

Debits reduce the seller’s proceeds. Common debits include:

  • Existing loan payoffs
  • Real estate commissions
  • Seller-paid closing costs or concessions
  • Prorated property taxes
  • HOA transfer or document fees (if applicable)
  • Title and escrow fees allocated to the seller

Section 4: Payoffs and Liens

This section itemizes loan payoffs and any liens being cleared at closing. Payoff amounts must match lender statements and are time-sensitive.

Common Items Sellers Should Double-Check

  • Purchase price: matches the accepted contract
  • Commission: matches the listing agreement
  • Concessions: reflect negotiated credits or repairs
  • Loan payoffs: correct lender and amounts
  • Tax prorations: accurate based on closing date
  • HOA fees: only if applicable and agreed

If something looks off, ask before signing. Corrections are much easier prior to funding.

How the ALTA Differs From a Seller Net Sheet

A net sheet is an estimate used for planning. The ALTA is the final, binding accounting.

  • Net Sheet: early estimate
  • ALTA: final numbers
  • Net Sheet: planning tool
  • ALTA: closing document

Small differences are normal due to interest accrual, final tax prorations, and exact payoff timing.

How This Fits Into the Seller Process

  1. Loan is clear to close
  2. Title figures and payoffs are finalized
  3. Escrow prepares the ALTA
  4. Seller reviews draft ALTA
  5. Corrections (if any) are made
  6. Final ALTA is signed at closing

Want Help Reviewing Your ALTA Before Closing?

The ALTA is where everything becomes final. If you want a second set of eyes to confirm the numbers match what you expect, we’re happy to review it with you before closing day.

Contact a Two70 Agent

FAQ

Can numbers change after I review the draft ALTA?

Minor adjustments can occur (interest, tax prorations), but major changes should be reviewed and explained.

What if I see a charge I don’t recognize?

Ask before signing. The escrow officer can explain or correct it.

Do I have to sign the ALTA to close?

Yes. The ALTA is part of the final closing package.

When do I receive my proceeds?

Proceeds are typically released after documents record and funds are authorized, timing depending on the transaction.

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