Several of you have asked if the closing attorney is required by TRID to prepare a settlement statement. The answer is no, which raises several issues for the real estate licensee. First, a licensee is required by state law to ensure that their client receives a copy of the closing statement properly accounting for all funds paid, received and expended in connection with the transaction. Secondly, the licensee must retain certain transaction documents for a period of 5 years. Lastly, most brokers require a settlement statement in order for the licensee to get paid.
While there is no TRID requirement for the closing attorney to prepare and deliver a settlement statement, most attorneys are preparing some type of closing statement. The American Land Title Association has created the ALTA Model Settlement Statement which was designed to be a model form. Some attorneys have chosen to use the pre-GFE HUD-1. Blair Cato has created its own closing statement that is heavily based on the ALTA form.
In the rare instance that a closing attorney does not prepare any closing statement, please remind the attorney of your statutory requirements under the statute. Almost all closing attorney software products allow for the printing of a closing statement in addition to the Closing Disclosure. No extra work is involved in creating the closing statement. Remind the attorney that you do not want to possess the Closing Disclosure due to the heavy burden of protecting the nonpublic personal information contained therein. Hopefully with an explanation as to why you need the closing statement, the closing attorney will oblige.
Today’s historical note. Lincoln Street is not named for President Abraham Lincoln. Rather the street is named for Continental Army General Benjamin Lincoln. Lincoln served as a Major General during the Revolutionary War and is noted for his suppression of Shay’s Rebellion in 1787 as well as his defense of South Carolina from 1778 to 1781.