Preliminary Settlement Statement Closing Amount Clause Samples

The Preliminary Settlement Statement; Closing Amount clause defines the process for preparing and agreeing upon a detailed statement of all financial amounts due at the closing of a transaction. Typically, this clause requires one party—often the seller or an escrow agent—to prepare a draft settlement statement listing all credits, debits, and adjustments, which is then reviewed and approved by the other party before closing. This ensures that both parties have a clear, itemized understanding of the final amount to be paid or received at closing, thereby minimizing disputes and ensuring transparency in the financial aspects of the transaction.