How to Read a Settlement Statement on a Double Close

What is a settlement statement?

A settlement statement itemizes every dollar in a closing: who pays what, who receives what, and what is credited. Many title and settlement companies use the forms published by the American Land Title Association (ALTA). ALTA offers four versions: Borrower-Buyer, Cash, Combined and Seller (ALTA Settlement Statements). ALTA notes its statements are not meant to replace the CFPB's Closing Disclosure where that form applies. Your title company decides which form it uses, and line labels vary.

Why are there two statements on a double close?

Because there are two closings. The A–B closing is your purchase. The B–C closing is your resale. Each has its own buyer, seller, funds and statement. That separation is the point: your end buyer sees you as the seller on their statement, and your purchase price does not appear there the way an assignment fee would.

The A–B statement: you are the buyer

Here are the main lines using the example on Axelrad's transactional funding page. The $200,000 price, $5,000 deposit and $195,000 advance follow that example; the split of closing costs between the two legs is hypothetical. Example figures, not a quote.

The seller's side of this statement shows a cash sale at $200,000 less their own costs and payoffs.

The B–C statement: you are the seller

How do you get from the two statements to your profit?

1. Start with the B–C proceeds: $30,050.
2. Subtract what you put in along the way: the $5,000 deposit and the $2,500 you brought to the A–B closing, $7,500 in total.
3. What is left, $22,550, is your profit in this example.

Axelrad's page reaches the same number another way: the $30,000 spread, less $5,500 in combined closing costs and the $1,950 funding fee. The $30,050 paid at title also returns the $7,500 you put in.

What changes if the end buyer is financing?

The B–C statement gets more lines. A financed end buyer's statement shows their new loan, their lender's fees and any escrow deposits for taxes and insurance. None of that changes your side much, but it does change timing: title cannot disburse the B–C funds, and so cannot repay the transactional lender, until the buyer's lender funds. If the buyer's lender wants its own form or adds conditions, the B–C statement may be revised several times before closing. Ask title to send you each new draft.

What lines deserve a second look?

• The deposit credit. Confirm your earnest money is credited on the A–B statement and not missing or duplicated.
• The lender payoff. It should match your funding approval: the advance plus the agreed fee, with no surprise charges.
• Title and settlement fees on both legs. A double close has costs on each side; make sure nothing is charged twice without reason.
• Prorations. Taxes and other prorated items appear on both statements and should be consistent.
• Seller credits and concessions. Anything promised in the contract should appear.

Ask title for drafts of both statements before closing day so you can review them calmly. The double-closing checklist covers what to ask title to confirm.

Key takeaways

• A double close has two settlement statements: A–B (you buy) and B–C (you sell).
• The A–B statement shows the price, your deposit credit, the lender's funds and your purchase costs.
• The B–C statement shows the resale price, the lender payoff and fee, your selling costs and your proceeds.
• Your profit is the B–C proceeds minus what you put in on the way.
• Request draft statements early and check deposits, payoffs and duplicate fees.

Want a clean pair of statements?

Send your contracts to Axelrad and the team will coordinate the advance and payoff figures with your title company for transactional funding.