Wyoming Real Estate Practice Exam

A closing statement is a critical document prepared during the settlement phase of a real estate transaction, detailing the financial aspects of the sale. It provides a comprehensive account of all the costs and funds involved, including the total cash received, escrow agent fees, and title insurance premiums.

While items such as escrow fees and title insurance reflect necessary services and costs related to the closing of the property, legal representation details are typically not included. The closing statement focuses on the financial transactions and obligations of both the buyer and seller rather than the legal advice or services provided, which are considered separate from the closing costs. This separation is important because legal representation is usually arranged and paid for independently of the closing process. Thus, the absence of legal representation details in a closing statement aligns with the document's purpose of summarizing monetary exchanges directly tied to the property transaction.