New York real estate practice is attorney-driven, and on transactions outside the scope of the federal disclosure rules the closing accounting is frequently summarised on a single statement rather than a Closing Disclosure or HUD-1.

The result is a document organized around the question an attorney actually has to answer at the table - what is each side credited, and what leaves the account - rather than around the federal forms' itemised charge categories.

Three groups

The statement organizes everything into credits to the seller, credits to the buyer, and disbursements. Each group has its customary named lines plus room for whatever else the file requires.

Credits to seller

  • Water and sewer - the seller's adjustment for municipal charges
  • Rents and security - where the property carries tenancies
  • Fuel and oil - the tank adjustment, discussed below
  • Further seller credits as the transaction requires

Credits to buyer

  • Down payment, and interest on the down payment where the contract deposit has been held in an interest-bearing account
  • Deposit
  • Rent adjustment and security deposit credit - the tenancy figures from the buyer's side
  • Purchase money mortgage, where the seller is financing part of the price
  • Further buyer credits as required

Disbursements

  • Title fees and the title closer fee
  • Broker fee
  • Legal fee
  • Payoff of the seller's mortgage
  • Further disbursements as required

The fuel and oil adjustment

A line with no equivalent on the federal forms. Where a property is heated by oil, the seller leaves fuel in the tank that the buyer will burn, and is credited for it.

credit = gallons remaining × price per gallon

Both inputs come from outside the transaction: the gallons from a tank reading taken at or near closing, the price from the supplier's prevailing rate. It is a small figure on most closings and a conspicuous one in a cold January on a large tank.

Interest on the down payment Where a contract deposit has been held in an interest-bearing escrow account, the interest accrued belongs to somebody under the contract and is accounted for on the statement. It is easy to overlook on a transaction that has been pending long enough for the interest to matter.

What sits outside the statement

Several substantial figures are deliberately not part of this statement, which surprises anyone approaching it expecting a HUD-1's completeness:

  • Transfer taxes and mortgage recording tax - calculated separately, on their own bases and rates
  • Title insurance premiums - handled with the other title charges

These are not omissions. They are calculations with enough structure of their own - tiered rates, different bases, jurisdiction-specific rules - that folding them into a summary statement would obscure rather than clarify them. They are computed where that structure lives and brought in as figures.

The practical consequence is that the closing statement is not a self-contained record of the transaction's economics. Reading it alone will not tell you what the mortgage recording tax was.

Common questions

What is a New York closing statement?

A single statement summarising the closing accounting for a New York real estate transaction, used in place of a federal Closing Disclosure or HUD-1 on transactions outside the scope of the federal disclosure rules. It organizes the transaction into credits to the seller, credits to the buyer, and disbursements.

What is the fuel and oil adjustment on a New York closing statement?

A credit to the seller for heating oil left in the tank at closing, which the buyer will use. It is calculated as the gallons remaining multiplied by the price per gallon, using a tank reading taken at or near closing and the supplier's prevailing rate.

Are transfer taxes included on the New York closing statement?

No. Transfer taxes and mortgage recording tax are calculated separately, on their own bases and rates, and are not part of the closing statement itself. Title insurance premiums are likewise handled with the other title charges.

What is a purchase money mortgage on the closing statement?

Seller financing - where the seller finances part of the purchase price rather than the buyer obtaining the full amount from an institutional lender. It appears as a credit to the buyer, since it reduces the cash the buyer must produce at closing.

Why does interest on the down payment appear as a buyer credit?

Where the contract deposit has been held in an interest-bearing escrow account, the interest accrued during the contract period has to be accounted for at closing according to what the contract provides.

Docketman runs the closing

Prorations, prepaids, recording charges and payoffs are calculated on the matter and flow straight onto the Closing Disclosure, the settlement statements and the disbursement ledger.