What is the primary purpose of a closing statement in a real estate transaction?

The primary purpose of a closing statement in a real estate transaction is to detail financial aspects, including credits and debits. This document serves as a comprehensive record of all the financial transactions that occur at closing, providing a clear breakdown of what each party owes or will receive. It typically lists debits, such as the purchase price, closing costs, and any other fees, alongside credits, such as deposits or seller concessions.

This detailed account ensures transparency between buyers and sellers, allowing them to understand the financial implications of the transaction. In contrast, other options don't encapsulate the main function of the closing statement; summarizing property features focuses more on marketing aspects, a legal description is more relevant to property identification rather than the transactional finances, and outlining mortgage terms pertains to the financing aspect but is not the primary purpose of the closing statement itself.