📄 What Is an ALTA Statement in Real Estate?

An ALTA Statement (also called an ALTA Settlement Statement) is a detailed closing document that itemizes every cost in a real estate transaction. It follows a standardized format created by the American Land Title Association (ALTA), ensuring accuracy and transparency. It shows the final purchase price, loan fees, title charges, taxes, credits, and the exact amount each party pays or receives at closing.

How an ALTA Statement Works

The ALTA Statement is created by the title or escrow company at the end of the transaction. It follows a standardized format approved by the American Land Title Association (ALTA) to ensure accuracy and transparency for buyers and sellers.

The ALTA includes:

  • Purchase price and loan amount
  • Title insurance premiums
  • Escrow and settlement fees
  • Prorated taxes, HOA dues, and utilities
  • Lender fees and loan charges
  • Seller credits and buyer deposits
  • Recording fees and transfer charges

Because the ALTA is standardized, both parties can clearly see how every dollar is calculated before closing.

Why the ALTA Statement Matters

For Buyers:

  • Shows the exact amount needed to close
  • Breaks down lender fees and prepaid items
  • Provides transparency into every closing charge
  • Helps compare the estimate with final numbers

For Sellers:

  • Shows total proceeds after fees and loan payoff
  • Lists all deductions and prorated expenses
  • Ensures accuracy before signing closing documents
  • Prevents last-minute surprises at closing

Example of an ALTA Statement

A buyer is purchasing a home for $425,000. The ALTA shows:

  • Purchase price: $425,000
  • Loan charges: $3,800
  • Title fees: $1,450
  • Escrow fee: $750
  • Recording fees: $135
  • Prepaid taxes and insurance: $2,200
  • Earnest money credit: –$5,000

The ALTA calculates the buyer’s final amount due and the seller’s final proceeds after all deductions.

Why ALTA Statements Matter for FSBO Sellers

FSBO sellers use the ALTA to verify that closing numbers are accurate and that the correct amount of proceeds will be disbursed after recording.

  • Ensures the buyer’s credits and prorations are accurate
  • Shows loan payoff and net proceeds
  • Helps track any concessions or repairs
  • Confirms all fees before signing final documents

Listing through Flat Fee MLS with Brokerless makes managing your closing documents simple and transparent.

Frequently Asked Questions

Is the ALTA the same as the Closing Disclosure?
No. The Closing Disclosure is required by federal law for buyers using financing. The ALTA is a more detailed settlement form used for both cash and financed buyers.

Who provides the ALTA Statement?
The title or escrow company prepares the ALTA as part of the settlement package, usually 1–3 days before closing.

Do both buyer and seller get an ALTA?
Yes. Each party receives their own version, listing their respective credits, fees, and closing totals.

Is the ALTA required by law?
No. It’s an industry-standard form, but most title companies use it because it's detailed and easy to understand.