The ALTA Settlement Statement is the closing document prepared by the title company that shows the complete financial breakdown of a real estate transaction. Unlike the lender’s Closing Disclosure, which focuses solely on the borrower’s loan terms and closing costs, the ALTA presents the entire settlement in a clear, two‑column format: one column for the buyer and one for the seller. This structure mirrors the old HUD‑1 and remains the preferred format for REALTORS in New Hampshire because it is intuitive, transparent, and easy to follow.
The ALTA includes every dollar that moves through the transaction. On the buyer’s side, it shows the down payment, loan amount, closing costs, prepaid items, prorations, and the final cash‑to‑close. On the seller’s side, it shows commissions, tax adjustments, HOA dues, fuel or propane credits, mortgage payoffs, and the seller’s net proceeds. Because it captures both sides of the transaction, the ALTA is the document that REALTORS rely on to confirm accuracy, explain adjustments, and prepare clients for closing day.
Prorations are a major component of the ALTA. These adjustments ensure that buyers and sellers each pay their fair share of expenses based on the closing date. In New Hampshire, common prorations include property taxes, HOA dues, water/sewer charges, and fuel readings. The ALTA shows these prorations clearly so both parties understand why they are being charged or credited.
The ALTA also reflects any negotiated credits. Seller credits appear on the buyer’s side as a reduction in cash‑to‑close and on the seller’s side as a cost. This dual presentation ensures the transaction balances properly. When the ALTA is complete, the bottom line for both buyer and seller must reconcile with the lender’s final Closing Disclosure.
In practice, the ALTA is the working document at the closing table. REALTORS use it to verify commissions, confirm net proceeds, explain adjustments, and ensure their clients understand the final numbers. While the CD is the compliance document required by federal law, the ALTA is the communication document that makes the transaction understandable for everyone involved.
For more detailed guidance, contact Renee Duval (NMLS 97967) at Bookend Lending LLC.