What the seller statement is
The seller's settlement statement is the page or pages that show every dollar going in and out of the sale. In a Massachusetts closing, the closing attorney prepares it, and ideally you see a draft a few days before closing. The federal Closing Disclosure covers the buyer's loan: the CFPB describes it as the borrower's document and says lenders give it to the borrower three business days before closing. We did not find an official source saying what form a seller must receive, so ask your attorney for your statement early.
Ask for the draft two to three business days before closing, and compare every line with your listing agreement, your purchase and sale agreement and your lender's payoff letter.
Line by line: a made-up example at $600,000
The numbers below are an illustration, not a real closing. They use the sourced deed excise rate and lien certificate fee, a 5% commission, a $1,500 attorney fee and an invented mortgage payoff. Your lines and order will differ.
| Line | What it is | Amount |
|---|---|---|
| Sale price | Contract price from the purchase and sale agreement | $600,000 |
| Commission | Listing agent, and buyer agent if you agreed to pay it. Check the percentage against your listing agreement | -$30,000 |
| Deed excise stamps | $2.28 per $500 of price | -$2,736 |
| Seller's attorney | Your attorney's fee | -$1,500 |
| Municipal lien certificate | Town certificate of liens | -$25 |
| Smoke/CO certificate | Fire department inspection | -$50 |
| Subtotal after costs | $565,689 | |
| Mortgage payoff | Principal, interest through closing and any lender fees, from the payoff letter | -$312,400 |
| Real estate tax proration | Your share of this year's tax if you owe more than you paid. A credit appears as a plus | -$2,100 |
| Cash to seller (estimate) | Wired to you or issued by the attorney | $251,189 |
Your net can also be reduced by a second mortgage or home equity loan, unpaid water or sewer bills, a condo fee, a repair credit to the buyer or any judgment lien. Each shows up as its own line. See home equity loan payoff and liens and judgments.
What to check on every line
- Sale price and date. They must match the signed agreement.
- Commission. Percentage and dollar amount must match your listing agreement and any buyer-agent offer you made. See realtor commission in Massachusetts.
- Deed excise. For the price you should see $2.28 per $500, about $4.56 per $1,000. See the deed excise tax guide.
- Payoff. Compare it to the lender's payoff letter, which includes per-day interest. Ask for an updated letter if the closing date moved. Your lender then records a discharge of the mortgage.
- Proration. Check the dates and daily amounts for tax and water. See tax proration.
- Credits to the buyer. Repair credits or closing-cost help must match what you agreed.
- Unknown fees. Ask your attorney about any line you do not recognize before you sign.
When the money arrives
We could not find an official Massachusetts source on exactly when seller funds are released, so use this as a general pattern and ask your attorney. In an attorney-run Massachusetts closing, the buyer's funds usually go to the closing attorney's account, the deed and mortgage are recorded at the Registry of Deeds, and the attorney then pays off your lender and sends your proceeds. That can be the same day or the next business day. Ask whether you will get a wire or a check, and when.
Plan around that gap. If you are buying another home on the same day, tell both attorneys, and see selling and buying at the same time.
Wire fraud: how to protect your closing funds
Scammers send fake emails that look like they come from your agent or attorney with new wiring instructions. The CFPB's guidance on closing scams (June 3, 2019) gives these steps, which apply to sellers receiving funds as well:
- Before the closing, pick two trusted contacts, such as your attorney and agent, and write down their phone numbers.
- Before sending or changing any wire details, confirm them with those contacts by phone, using the numbers you wrote down. Never use a number or link from an email.
- Remember that email is not a secure way to send financial information.
- If you are a victim, contact your bank or wire service immediately to ask for a recall, and file a complaint with the FBI's Internet Crime Complaint Center at ic3.gov.
Give your attorney your bank details in person or over a verified phone call, not by plain email.
After closing: Form 1099-S
The person responsible for closing files Form 1099-S with the IRS, and you should receive a copy after the year ends. Box 2a shows gross proceeds, generally the sales price. It is not the amount you keep and not the amount you owe tax on.
In some sales of a main home, the closing agent can skip the form if the seller gives a signed written certification that the home was their principal residence and all the gain is excludable. The IRS instructions limit that to sales of $250,000 or less ($500,000 if married). If you receive a 1099-S, you generally report the sale even if the gain is excluded. See cost basis and home sale tax reporting and the capital gains guide.