Can the Financial Statement be signed electronically?

Yes. Electronic signatures are generally enforceable under the federal ESIGN Act (15 U.S.C. ch. 96) and state UETA laws when intent, consent, attribution, and record retention are met; exceptions such as certain court filings and testamentary documents may apply.

What if the legal names on the statement do not match title?

Mismatched names can delay funding, create title defects, or require corrective affidavits. Confirm vesting against the title report and obtain corrected paperwork or notarized affidavits before disbursement to avoid post-closing claims.

Are notarization or witnesses required for the statement?

The statement itself is typically a settlement worksheet and rarely requires notarization, but supporting instruments (deeds, affidavits) may. Notarization and witness rules vary by state; Remote Online Notarization often requires identity proofing and recorded audio-video sessions.

How do I correct an error discovered after closing?

Prepare an amended statement, notify lender and title insurer, and record corrective instruments as needed. If tax reporting is affected, file corrected returns or information returns promptly to reduce IRC §6721 penalty exposure.

What records should be kept and for how long?

Retain the signed statement and supporting invoices for at least three years per IRS requirements (IRC §6501(a)); retain six years for HIPAA-covered records (45 CFR §164.530(j)) and longer where state law or lender policy requires.

How secure are electronic submissions of the statement?

Reputable eSignature platforms use TLS 1.2/1.3 for transport and AES-256 at rest, maintain SOC 2 Type II and ISO 27001 controls, and offer audit trails. For PHI include a Business Associate Agreement before transmitting protected health information.

Electronic Signature
Templates
Finance
Financial Statement of Adjustments

Financial Statement of Adjustments

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

FINANCIAL STATEMENT OF ADJUSTMENTS

Parties and Transaction

Seller Name:

Seller Address

Buyer Name:

Buyer Address Transaction / Property Description

Settlement File / Reference

Closing Date

Escrow / Closing Agent

Agent / Firm

Agent Name

Agent Phone

Agent Address

Statement of Adjustments (Itemized)

Instruction: Enter each line item applicable to this transaction. Positive amounts represent credits to the party named in the column; negative amounts may be shown as adjustments or debits. Use two decimal places.

Description	Seller (Credit / Debit)	Buyer (Credit / Debit)

Gross Purchase Price

Deposit(s) Applied

Other Allocations (mortgage payoff, brokerage, municipal charges)

Totals and Summary

Total Adjustments to Seller

Seller Net Proceeds

Total Adjustments to Buyer

Buyer Funds Required at Closing

Notes, Terms & Conditions

Certification: The undersigned closing agent certifies that the figures set forth on this Financial Statement of Adjustments are, to the best of the agent's knowledge and belief, a true and correct statement of prorations, credits and debits between the parties for the transaction described above. This statement is binding upon the parties when signed below and shall constitute final allocation of the items shown unless a written dispute is submitted to the closing agent within five (5) business days of execution.

Closing Agent Certification (name and statement)

Authorization: By signing below, each party acknowledges receipt of a copy of this Financial Statement of Adjustments, affirms that all known adjustments have been disclosed, and authorizes the disbursement of funds in accordance with the totals shown above.

Seller:

By:

Date:

Buyer:

By:

Date:

What the Financial Statement of Adjustments Is and Why It Matters

A Financial Statement of Adjustments is the closing worksheet used in U.S. real estate transactions to reconcile the contract price with amounts payable at settlement. It itemizes chargeable items, prorations, seller credits, payoffs, closing costs, taxes, assessments, escrow balances and net disbursements, showing each party's debit or credit. The statement supports lender funding, title clearance, accounting reconciliation, tax reporting and provides an auditable record for post-closing resolution of disputes or corrections.

Why a Clear Statement of Adjustments Reduces Risk

Provides a concise reconciliation that clarifies who pays what at closing and reduces late-stage disputes and funding delays.

Who Prepares and Relies on the Statement

Typical participants who prepare or rely on a Financial Statement of Adjustments include closing agents, title companies, lenders, brokers, and attorneys.

Title companies and escrow officers preparing closing figures and coordinating prorations.
Buyers and sellers reviewing final amounts due, credits, and prorated expenses.
Lenders and underwriters verifying payoff statements, escrow requirements, and funding totals.

Accurate preparation affects loan funding, title insurance issuance, and post-closing accounting; misstatements can delay or derail closings.

Core Parts of a Professional Financial Statement of Adjustments

Primary components define chargeable items, prorations, credits, and final disbursement totals used by title, lenders, and accounting teams for closing.

Contract Price

Record the agreed purchase price, earnest money, and any contract adjustments as the starting figure for prorations and disbursements at closing.

Prorations

Apportion recurring charges such as property taxes, HOA dues, and utilities between buyer and seller based on the agreed proration date and method.

Adjustments & Credits

List seller credits, prepaid items, escrow reimbursements and negotiated concessions with gross amounts, prorated shares, and net effect on closing funds.

Taxes & Assessments

Include current tax bills, prorated tax through closing date, and special assessments required by lender or municipality for accurate payoffs.

Closing Costs & Fees

Match loan payoffs, title fees, recording charges, escrow fees, lender charges and commissions, distinguishing amounts paid at closing versus financed.

Net Disbursements

Summarize amounts due to seller and amounts buyer must bring to closing after offsets, prorations, credits, and payoff obligations.

Step-by-Step Sequence to Prepare the Statement

Follow a consistent sequence to prepare, verify, and distribute the Financial Statement of Adjustments before closing.

01

Gather Documents: Collect contract, title report, tax bills, HOA statements.
02

Calculate Prorations: Apply agreed proration method to taxes and utilities.
03

List Adjustments: Show credits, payoffs, fees, and prorated amounts.
04

Review & Finalize: Confirm figures with lender, seller, and title.

Configuring an Online Workflow for Adjustments

Configure an online workflow to automate field mapping, calculations, and delivery for closing teams and records.

Field	Configuration
Proration Method	Daily or monthly calculation; choose per contract.
Tax Source	Use municipal tax bill or county treasurer totals.
Signer Order	Buyer then seller then lender; allow conditional signers.
Delivery Method	Email PDF, secure link, or platform inbox.
Audit Trail	Include timestamps, IP addresses, and signer authentication.

How the Statement Moves from Draft to Final Closed File

[INTRO] Routing and signing steps show how the statement moves from preparer to funded closing and recording.

Upload Document: Preparer uploads template and supporting bills.
Assign Fields: Place amount, proration, signature fields.
Send to Signers: Distribute by email link or secure portal.
Complete Audit: System captures timestamps, IPs, and attachments.

Technical Requirements for Digital Preparation and Signing

Choose a platform supporting PDF, calculated fields, and secure eSigning with audit trail and integrations.

File Formats: PDF, DOCX, and Excel supported.
Integrations: Salesforce, NetSuite, Google Workspace.
Authentication: Email, SMS code, and KBA options.

Essential Data Elements to Include on Every Statement

Legal Names: Exact vesting names from title report.

Property Description: Full legal description or street address.

Contract Price: Agreed sale price before adjustments.

Closing Date: Effective date for prorations (MM/DD/YYYY).

Proration Method: Daily or monthly basis specified.

Signatures: All parties' dated signatures required.

Key Deadlines and Timing to Watch

Key dates affect proration, funding, tax reporting, and deadlines for submitting corrected statements to title companies.

Provide statement to title and lender:

Deliver at least 3 business days before closing.

Confirm tax proration cutoff date:

Use closing date as cutoff unless contract specifies otherwise.

Submit final payoff figures to lender:

Request updated payoffs one to two business days before closing.

Record retention for tax reporting:

Keep copies for IRS timeline; reconcile with 1099 reporting.

Corrections and post-closing adjustments process:

Issue amended statement promptly and notify lender and title.

Milestone Timeline from Draft to Funding

Milestone sequence from preparation through funding highlights critical checkpoints and responsibilities in the closing process.

01

Prepare Statement

Draft and calculate prorations; attach supporting bills.

02

Distribute for Review

Send to buyer, seller, lender, and title for verification.

03

Resolve Discrepancies

Address disputes on credits, taxes, and payoffs prior to closing.

04

Finalize and Fund

Confirm final figures and authorize disbursements at settlement.

Common Preparation and Calculation Errors to Avoid

Failing to verify tax billing periods leads to incorrect prorations and potential lender or IRS reporting discrepancies, often resulting in delayed funding or post-closing corrections.
Using inconsistent proration methods between parties (daily vs monthly) creates disputes requiring recalculation or signed amendments after closing, increasing cost and administrative effort.
Omitting required payoffs such as municipal liens, HOA arrears, or accurate mortgage balances can cause title exceptions and prevent insurance or funding.
Entering mismatched legal names or incorrect vesting details causes title defects that may need affidavits, corrective deeds, or slow estate-related transfers.

Consequences of Incorrect or Incomplete Statements

Funding Delays: Closings can be postponed, incurring fees.

Title Exceptions: Unpaid liens prevent clear title.

Tax Reporting Risk: Incorrect bases affect IRS filings.

Regulatory Penalties: May trigger IRC §6721 penalties.

Breach Claims: Buyer or seller may seek damages.

Increased Costs: Corrective documents and attorney fees.

Baseline eSignature Pricing and Feature Comparison

Compare baseline pricing and common features among major eSignature providers relevant to document signing and closing workflows.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	Varies by plan	Varies by plan	Varies by plan	Varies by plan
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No

Frequently Asked Questions About Financial Statements of Adjustments

Answers to common questions about preparing, signing, and correcting a Financial Statement of Adjustments for U.S. real estate closings.

Need help? Contact support

Can the Financial Statement be signed electronically?
Yes. Electronic signatures are generally enforceable under the federal ESIGN Act (15 U.S.C. ch. 96) and state UETA laws when intent, consent, attribution, and record retention are met; exceptions such as certain court filings and testamentary documents may apply.
What if the legal names on the statement do not match title?
Mismatched names can delay funding, create title defects, or require corrective affidavits. Confirm vesting against the title report and obtain corrected paperwork or notarized affidavits before disbursement to avoid post-closing claims.
Are notarization or witnesses required for the statement?
The statement itself is typically a settlement worksheet and rarely requires notarization, but supporting instruments (deeds, affidavits) may. Notarization and witness rules vary by state; Remote Online Notarization often requires identity proofing and recorded audio-video sessions.
How do I correct an error discovered after closing?
Prepare an amended statement, notify lender and title insurer, and record corrective instruments as needed. If tax reporting is affected, file corrected returns or information returns promptly to reduce IRC §6721 penalty exposure.
What records should be kept and for how long?
Retain the signed statement and supporting invoices for at least three years per IRS requirements (IRC §6501(a)); retain six years for HIPAA-covered records (45 CFR §164.530(j)) and longer where state law or lender policy requires.
How secure are electronic submissions of the statement?
Reputable eSignature platforms use TLS 1.2/1.3 for transport and AES-256 at rest, maintain SOC 2 Type II and ISO 27001 controls, and offer audit trails. For PHI include a Business Associate Agreement before transmitting protected health information.

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