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Congratulations! You’ve found a buyer for your house. You signed the purchase agreement and got the earnest money deposit, and all that’s left to do is close the deal. As a homeowner, you know there are a lot of numbers involved in a mortgage transaction, and it can be difficult to keep them all straight. Luckily, there’s a simple form that can help.

You may have heard about the new closing disclosure forms that buyers receive as part of the home loan process. If you’re moving out of your old home and into a new one, you may even be getting one of these yourself. What you might not know is that the seller receives a closing disclosure form as well.

The purpose of a seller’s closing disclosure is to show the purchase price and also itemize expenses for anything agreed to in the purchase agreement.

First, we’ll go over the types of things a seller might pay for and then get into what’s listed on the form.

What Fees Would a Seller Pay?

You’re the one selling the house, so why would you have to pay for anything at closing?

Anything you owe on the mortgage is due when you close the sale. That’s the first big thing to think about from a seller’s perspective.

One additional cost that buyers and sellers often both have to pay is their portion of the commission for the real estate agents involved in the transaction. This would be enumerated in your seller’s disclosure statement.

You might also negotiate to pay your prorated portion of the property taxes or homeowners insurance for the period you’re still living in the home.

Then there are seller concessions, which are often decided on during negotiations between buyers and sellers. Paying for all or a portion of the title insurance, the cost of the appraisal or prepaid interest points can sometimes help you close the deal faster and lock in a buyer.

Buyers will sometimes use seller concessions in order to lower the amount they have to bring to the closing table and roll their own costs in to be paid over the life of their loan. In this arrangement, the seller agrees to pay the closing costs, or a portion of them, in return for a higher sales price.

The amount that a seller can pay toward these costs may be limited based on the buyer’s down payment and the specific loan they’re applying for.

In addition to seller concessions, a seller might pay if the property needs any repairs. Depending on the loan program a buyer is using, there may be a requirement that repairs be completed before the property can actually be sold. You and the buyer might have a similar agreement to repair things that might come up during the inspection that would be worked out as part of the purchase agreement.

By the time you factor in all the potential expenses for both the buyer and the seller, it can all be hard to keep track of. That’s where the seller’s closing disclosure form comes in.

Seller’s Closing Disclosure

The seller’s closing disclosure is really an abbreviated version of the buyer’s version of the form. It shows the seller’s portion of the fees associated with the transaction, including the mortgage payoff amount and anything the seller has agreed to pay for.

This closing disclosure shows a line-item breakdown of every cost paid by the seller and whether it was paid before or at closing. It’s prepared by the closing agent for the date of the close.

The document shows the purchase price, the cost to pay off the existing mortgage and any other liens on the property, and any adjustments in the purchase price for prepaid or unpaid local taxes.

Next, it goes over any costs the seller agreed to pay during negotiations with the buyer. This is where seller concessions would be listed. Prepaid escrow items are also here as well as anything else that might have been negotiated between the parties.

Receiving the seller’s disclosure is one of a few things that happen at the closing of your home sale. For more information, check out our post on what happens at a home loan closing.

Do you have questions about the seller’s closing disclosure form? Let us know in the comments, and we’ll get you the answers.

This Post Has 44 Comments

  1. If work was done over the years prior to selling a home would it be in the seller disclosure if they did repairs and had knowledge a big problems and were hiding it? Also, that’s not the closing disclosure. That’s more something you would be shown when you were making an offer on the house.

    1. If there was a problem that wasn’t fixed, that would be an issue. If repairs were done properly, it’s more up to them.

  2. As purchasers of a property, we signed all the closing documents and received hard copies. When we arrived home, the “sellers disclosure statement” was missing. We contacted the title company as were told that the buyers do not typically receive a copy of it. Our concern is that we signed it and we should get a copy. Thoughts?

    1. Hi John:

      A seller’s closing disclosure is really for the seller. There’s also no information on there that’s going to be different than your closing disclosure because it’s based on the same transaction. Your closing disclosure clarifies your responsibilities and the seller’s disclosure clarifies what theirs are. The document can even technically be prepared and handwritten at the closing, so while they have to have one, the regulations are little bit different than your closing disclosure where you’re potentially taking on hundreds of thousands of dollars of debt as a buyer. I guess the real answer is there’s nothing that would require them to give you a copy, but also, you have all the same information in your disclosure. Thanks for reaching out!

      1. There’s some confusion here between a Seller’s Disclosure, where the seller discloses to potential buyers any adverse material facts about the house, such as a leak in the roof, etc. This should be given to the buyer and signed by them BEFORE an offer is made on the house, or in some states perhaps within a specified number of days after the offer, and before any repair request must be made.

        The seller’s Closing Disclosure is done before closing, and it is a disclosure by the settlement agent (title company, attorney, etc.) to the seller of what their costs will be in the closing of the sale.

        It sounds like John is asking about the Seller’s Disclosure, which should have been given to the buyer long before closing so he could base his purchase offer and/or repair request on the information provided. As to the title company’s statement, all parties to the contract should receive copies of anything they’ve signed. (That’s just common sense; you don’t have people sign something and then refuse to let them keep a copy of what they’ve signed.)

  3. What takes precedent, the purchase agreement or the closing documents? If something is listed in the purchase agreement (a fee), but is not listed in the closing documents is the seller still obligated to give it to the buyer?

      1. What Zing? The CD does not take precedence over a signed Bi-lateral Contract (Purchase Agreement). Any discrepancies are always referred back to “What does the contract say”? The Purchase Agreement is the governing document and any changes have to be agreed to by both parties. If you sue someone for performance, the first thing a Judge will ask is what’s in the contract.

        1. I made an edit for people who come across this in the future. The bottom line is that people should make sure the terms match up. That way, you don’t have to worry about it!

  4. I am the seller. Is it a requirement in tennessee that I receive a disclosure statement and does it have to be signed by me?

    1. Hi Jeff:

      Consistent with federal regulations, you should receive a seller’s closing disclosure statement. However, it doesn’t need to be signed by you. I hope this helps!

  5. I am selling a home and also purchasing a home. My loan company is asking for the buyer of my house closing disclosure to view the profit I will be receiving. When will I get that to be able to send it to my bank for they can process my loan for my new house? We will be doing a Simultaneous close.

    1. Hi Emy,
      Typically, you’ll receive your seller’s disclosure form at closing. I would recommend speaking with the real estate professional you’re working with to sell your home, as they’ll better understand your unique circumstances and be able to give you a more detailed solution. Hope this helps!

  6. My husband closed on his house last Friday and on Monday his realtor texted him demanding an extra $500 for some mystery fee. Because he works nights she signed the closing disclosure for him. So when she started texting him and demanding that he write a check yo her agency, he thought perhaps his check from the title company was for more than he was supposed to receive, but he said he wanted to see The paperwork first. The disclosure and check arrived in the mail later on Monday and the check he received was for the amount in the closing disclosure. Can she do this?

    1. Hi Sara,

      I’m sorry to hear that you and your husband are going through this. I’m glad that your husband had the foresight to ask to see the paperwork before sending his realtor the money. The closing disclosure should include an itemized breakdown of payments. If the $500 is not on there, he should again ask her what it’s for. If she can’t explain the fee, he should not pay it. Hope this helps!

  7. Hello. We are FSBO sellers and are choosing to not pay buyer’s agents’ commission. If the mortgage company for the buyer puts the buyer’s agents commission under the column of seller on the lenders closing disclosure, are we legally bound to pay it?

    1. Hi Dee:

      Although the commission is typically paid by sellers, this is something that’s negotiable. However, I would contact the lender and make sure they know the buyer will be paying it in order to make sure things are smooth.

    1. Hi Nicole:

      No, it won’t show the amount of the down payment. This is because a down payment is given to and then held by a lender who then adds their loan amount. The seller gets one check for whatever the total amount due is. Hope this helps!

  8. I am the seller and I signed a buyer already signed closing statement. The closing statement I signed netted to me the seller a different amount that was deposited into my account. I contacted the title company and they are claiming that the amounts were altered and incorrect calculated. As I put everything in their hands being the title company I did not check their math and was happy with the amount so I signed. They are refusing to honor the amount on the closing statement is this legal?

    1. Hi Lizette:

      I would talk to the title company and try to get in contact with the lender as well. If you’re unhappy with their resolution, I would take it to court. I can tell you that the disclosure forms are supposed to be highly regulated.

    2. I’ve been on google still trying to find an answer. Your story sounds exactly like mine. We signed Friday at noon and the amount deposited was different. They then told me Monday that the realtors percentage was wrong on the documents. The new paperwork doesn’t have initials or stamp for the change. Can Documents be changed after we signed at closing?

      1. Hi Carolina:

        While there are instances in which things happen, I would speak with your lender immediately about exactly what’s happening here and figure out what you do or don’t have to deal with. I hope this helps!

  9. I was pre approved for my home loan based off my credit and income which includes rental income…has anyone been denied the final approval based off tax deductions from rental property income..or what are the chances of being denied after pre-approval..i close in a week so you can understand my concern.

    1. Hi James:

      There are lots of factors that go into final approval including the fact that the house has to pass appraisal, etc., but in terms of income, you’re qualified based on gross income and not income after taxes. Since it’s a rental, the other thing that the lender would look at is the likely continuance of the income, so they would ask to see rental agreements. You also can only use a percentage of that income to help you qualify in order to account for the time it would take you to find a new tenant if someone moved out. Hope this helps!

  10. I should have mentioned I am the seller…..I close tomorrow and the final seller’s statement I received shows the purchase price higher than what was agreed upon. Is this correct? Does anything change from agreement up until closing?

    1. Hi David:

      I would start by contacting your real estate agent if you have one and going from there. You may also be able to contact the buyer who can talk to the lender and make sure everything is properly in order.

  11. the purchase price on the sellers statement is higher than what was agreed upon. how does that happen and what can be done?

    1. Hi David:

      The only thing I can think of is that has to be a paperwork mixup. I think you need to talk to the lender involved and see if that’s what it was or if there’s another explanation. You can then go from there. Thanks!

  12. As a seller I agreed to pay Up to $4000 towards closing.

    Am I allowed to see a breakdown of where that $4000 went?

    1. Hi Georgann:

      That’s the idea of the seller’s closing disclosure. It’s a line-item breakdown of the money you’re making from the sale as well as the costs you agreed to pay. You get it at the closing table. Hope this helps!

      1. Georgann, correct me if I’m wrong, but I think Zing is misunderstanding the question. (This is for the benefit of people reading this later, BTW.) I believe Georgann is asking if the SELLER is allowed to see WHERE their $4,000 paid toward closing went. It is generally just credited toward the buyer’s closing costs, not broken down to where it was specifically applied.

        And to read a little more into your question, when we bought our first house the seller credited some funds toward some repairs and then came back after the sale asking for proof that the repairs were done. Unless a state has some strange rule, this is not the seller’s right, as the house is now owned by the buyer and they can choose to do the repairs right away, put them off a while, or never do them. It’s their house now.

        1. Hi Jennifer:

          if think you’re right. That does clarify the question.

          Although certain items are included on the disclosure that are filled out, there is no itemized breakdown for everything. Thanks!

  13. I received my Closing Disclosure documents yesterday and I didn’t see the closing cost amount the seller agreed to pay towards my closing costs and I didn’t see the appraisal fee they said I will get back at closing which would be credited to me. Should it be on my Closing Disclosure?

    1. Hi Trish:

      I recommend speaking with your mortgage lender about any questions you have on your closing disclosure as soon as possible. That way, if something isn’t right, you can get it corrected before closing. If you and the seller agreed on credits and there was an amount you were supposed to get back for appraisal, you should see the credits on the form. You should definitely reach out to your lender.


    1. Hi Bernardo:

      The closing agent is in charge of preparing the seller’s closing disclosure, so there’s no waiting period and you get it on closing day.

      Kevin Graham

  14. We (the sellers), received the closing disclosure 2 weeks before settlement. Everything was spot on with all figures and the amount we would receive. After final closing and signing, we realized the amount we would receive had changed to the tune of $25,250. What recourse do we have? Can the lender change the closing disclosure without allowing us to review it prior to the date of signing?

    1. Hi Joanne and Larry:

      I want to make sure you get the most accurate information possible about what can change and when. I’m going to recommend you talk to one of the Home Loan Experts by calling (888) 980-6716. They’ll be able to give you guidance.

      Kevin Graham

  15. We are the sellers. We signed all paper work for the sale of a house after briefly reviewing the closing disclosure. Now we found out the amount the title company entered in the “due from seller” section for the payoff mortgage loan is $900+ higher than what we actually owed to the mortgage company. Can we still get our money back? We were not provided this information before closing to have time to make a little bit of a research.

    1. Nothing is supposed to change from the closing disclosure. If it did, I would contact the mortgage company and the title company and see what’s going on.

    1. I suspected that there has been some form of loan disclosure as long as there have been mortgages. However, these particular regulations around loan estimates and closing disclosures went into effect in October 2015.

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