Selling a home comes with its own detailed paperwork, and the settlement statement is where everything comes together. This section explains the seller side of a combined settlement statement so you understand what each charge represents and why it appears.
What a Settlement Statement Shows Sellers
A settlement statement is a final accounting of the transaction. On a combined buyer/seller statement, you’ll see:
The sale price
Credits and debits for both parties
Closing costs paid by the seller
Payoffs and prorations
Your final net proceeds
Seller charges and credits appear in the seller debit and credit columns.
Seller Credits & Prorations
Credits and prorations balance shared expenses fairly between buyer and seller.
Examples include:
Property tax credits
HOA dues
Prepaid services
Credits reduce your net proceeds but ensure expenses are properly divided.
Property Taxes in Illinois: Paid in Arrears
Illinois property taxes are paid in arrears, which means:
Taxes for the current year are paid the following year
At closing, sellers credit buyers for the portion of the year they owned the home
Buyers then use that credit to pay the full tax bill when it comes due
This is one of the most common seller questions and often the largest line item on a settlement statement. It is standard and does not mean you are paying taxes twice.
Seller Title & Settlement Charges
Sellers typically pay certain title-related fees associated with transferring ownership.
Common seller charges include:
Settlement / Closing Fee – Covers coordinating the closing, preparing documents, and handling escrowed funds.
Owner’s Title Insurance – Optional but strongly recommended. This protects the buyer against past title issues and is customary for sellers to provide in Illinois.
Title Search / Property Search – Confirms ownership and identifies any liens, judgments, or issues that must be cleared before closing.
Deed Preparation – Legal preparation of the deed transferring ownership.
Recording & Wire Fees – Covers recording documents and transferring funds securely.
These charges ensure the buyer receives clear, marketable title.
Real Estate Commissions
Real estate commissions are shown clearly on the seller side of the settlement statement and are paid from the sale proceeds at closing.
These commissions are agreed upon in advance in the listing agreement and are disbursed directly to the brokerages involved.
Payoffs & Other Seller Obligations
If applicable, the settlement statement may include:
Mortgage Payoffs – Funds sent to your lender to satisfy existing loans
HOA Dues or Assessments – Prorated through the date of closing
Unpaid Bills or Liens – Items that must be cleared to deliver clear title
These are paid directly from closing proceeds so nothing carries over after the sale.
Net Proceeds: What You Take Home
At the bottom of the settlement statement, you’ll see your net proceeds — the amount you’ll receive after all costs, credits, and payoffs are applied.
This is the final number that will be wired or issued to you at closing.
The Bottom Line for Sellers
Every seller-side line item serves a purpose: clearing title, satisfying obligations, and ensuring a clean transfer of ownership.
If something doesn’t make sense, that’s normal — we’re always happy to walk through your statement line-by-line so you know exactly where every dollar goes.