Which document is used for the exchange of funds and instructions during the closing process?

The settlement statement is the key document used during the closing process in real estate transactions. It provides a detailed list of all the costs and credits associated with the sale, outlining the financial obligations of both the buyer and the seller. This document serves as a comprehensive record that breaks down the transactions, including closing costs, taxes, and other fees, ensuring transparency and clarity for both parties involved.

During the closing process, the settlement statement is crucial because it also outlines how funds will be distributed among various parties, such as real estate agents, lenders, and the seller. The presence of this detailed information allows for proper management of the financial aspects of the transaction, ensuring that all parties are aware of their financial standing before the exchange of funds occurs.

In contrast, the other documents mentioned serve different purposes. The mortgage document pertains to the agreement between the borrower and the lender for the loan secured by the property. The trust deed involves the arrangement concerning the transfer of property ownership through a trustworthy third party. The promissory note is a binding contract where the borrower agrees to repay the lender under specified terms, but it does not detail the financial exchanges during the closing process as the settlement statement does. Hence, the settlement statement is the correct choice for managing the financial transactions