Which of the following best describes a closing statement?

A closing statement is best described as a summary of the financial transaction and costs associated with closing. This document details all of the financial aspects involved in the real estate transaction, including the purchase price, the amounts paid, credits to the buyer and seller, and any fees incurred during the closing process. It serves to provide transparency and ensure that all parties understand the financial implications of the sale.

The closing statement might include line items for things like escrow fees, title insurance, and prorated taxes. It is critical for buyers and sellers to review this document carefully to ensure that all calculations are accurate and that they are aware of their financial obligations and entitlements.

While the other options refer to related aspects of real estate transactions, they don't accurately define what a closing statement entails. The mortgage terms focus specifically on the financing of the property, the historical value pertains to the property’s past market performance, and the legal description details the property’s boundaries without addressing the financial transaction itself.