Understanding the HUD-1 Settlement Statement

Line by line description

Section 1100, Title Charges

Title charges include fees directly related to the transfer of title, such as the title examination, title search, document preparation, and fees for the title insurance policy. They are normally charged to the buyer.

Legal fees include fees for both the borrower's and seller's attorneys, and sometimes an attorney for the lender. Other items covered in this section are fees for closing agents and notaries. When one person performs many tasks fees may be lumped together. Line 1101 is used to record the settlement agent's fee.

The fees for the abstract or title search and examination are entered in lines 1102 and 1103. If the same person performs both duties, a lump sum will be entered in line 1103. If the person doing the work is a title company or attorney, charges are entered later, in lines 1107 or 1108.

Line 1104 shows charges for the title insurance binder (also called a commitment to insure). Payment for title insurance policies is entered later.

Line 1105 records charges for deed preparations, and such bills as work on mortgages and notes.

The fee charged by a notary public for authenticating the execution of the settlement documents is entered on line 1106.

Line 1107 discloses an attorney's fees.

Line 1108 is the cost of title insurance (except the cost of the binder).

Lines 1109 and 1110 are informational lines that disclose the costs for the separate title insurance policies for borrower and lender. (Only line 1108 is carried forward.)

Lines 1111 to 1113 are used to enter other title-related charges which vary by location. Entries might include a fee to a county tax collector for a tax certificate or a fee to a private tax service.

Section 1200, Government Recording and Transfer Charges

This section is used to itemize charges such as costs for recording deeds and mortgages and fees for tax stamps.

Sections 1300 & 1400, Additional Settlement Charges and Totals

Section 1300 is used to record survey fees and inspections for such things as pests, lead-based paint and radon. Structural inspections and inspections for heating, plumbing, or electrical equipment might also be included. If either party is buying a home warranty, the charge will be entered in this section.

Line 1400 is for the total settlement charges paid from borrower's and seller's funds. They are also entered in Sections J and K, lines 103 and 502.