Which document typically outlines property taxes and you maintain necessary insurance coverage?

The closing statement is the document that typically outlines property taxes and maintains necessary insurance coverage. This document summarizes all financial transactions related to the sale of the property, including the purchase price, loan details, and any applicable property taxes. It provides a clear picture of the costs associated with the transfer of property and ensures both the buyer and seller are aware of their financial commitments regarding taxes and insurance.

In a real estate transaction, the closing statement serves as a detailed account of the transaction's financial aspects, including the allocation of taxes that might need to be paid or prorated at closing. It also includes sections for any required insurance coverage, ensuring that both parties are informed about any obligations tied to the property being sold.

While other documents play important roles in the real estate process—like the deed, which proves ownership, and the purchase agreement, which outlines the terms of the sale—they do not specifically detail the financial obligations like property taxes and insurance as clearly as the closing statement does. An affidavit may be used to affirm certain facts or conditions related to the transaction, but it is not focused on taxes or insurance.