On a closing statement, what does a debit represent?

In the context of a closing statement, a debit represents an amount charged to a party involved in the transaction. This could include various costs such as loan fees, title insurance premiums, and other expenses that the buyer or seller must pay as part of the closing process. Essentially, a debit indicates an obligation that the party must fulfill in the transaction and is reflected on their closing statement as an outgoing payment.

Understanding this concept is crucial for both buyers and sellers because it helps them track their financial responsibilities during the closing process. The other concepts listed, such as amounts received or taxes owed, refer to credits or other financial aspects but do not accurately describe what a debit signifies within the context of a closing statement.