Buyer's and Seller's Transaction Entries

The Closing Disclosure (CD) is the standardized federal form used to detail these costs. The form is designed so the buyer and seller each have their own columns. The "Buyer’s Transaction" section totals up all costs to purchase the property (Debits) and subtracts all credits (loans/deposits) to arrive at the final "Cash to Close" the buyer must bring. The "Seller’s Transaction" section starts with the sale price (Credit) and subtracts all costs (Debits) to arrive at the "Cash to Seller," which is the check the seller receives at the end of the day.The regulations group settlement charges into specific categories to help borrowers understand what they can and cannot shop for. Some fees are "origination charges" paid to the lender (zero tolerance for change). Others are "services you cannot shop for" (like the appraisal), and "services you can shop for" (like the survey or pest inspection). The closing statement clearly lists who pays for each specific item—buyer, seller, or others—ensuring transparency.