1. Objective
This SOP defines how a Virtual Assistant (VA) reviews the draft settlement statement (ALTA) when it arrives from the title company — line by line against the executed contract and amendments — so any errors are caught and corrected before they reach the closing table.
Errors on the settlement statement are common and consequential. A transposed number in the commission, a missed seller credit, an incorrect proration calculation — any of these can cause a dispute at the table or, if missed, create a legal issue after closing. The VA's job is to be the first set of eyes on this document and to catch anything that doesn't match the contract record before the agent and client see it as the "final" version.
Where this SOP starts: Draft settlement statement (ALTA) received from the title company — typically 1–3 business days before closing.
Where this SOP ends: The agent confirms the statement is accurate, the final version is saved to the closing documents file, and the transaction proceeds to the final walkthrough and closing.Success looks like: The agent reviews the settlement statement and finds no errors — because the VA already found and corrected them.
2. Your Role & Boundaries
2a. What you handle independently
- Reviewing the draft settlement statement against the executed contract and all amendments
- Identifying any figure that does not match the contract record
- Notifying the agent and title company of any discrepancy found
- Requesting a corrected statement from the title company when errors are found
- Saving the agent-approved final statement to the closing documents folder
2b. What requires agent approval before acting
- Any correction request to the title company — the VA identifies discrepancies, the agent confirms before the correction request is sent
- Any determination about whether a discrepancy is an error or reflects a term the VA may not be aware of
- Final approval of the settlement statement — the agent signs off, not the VA
2c. What you never do
- You never negotiate on the agent's behalf under any circumstances.
- You never provide pricing, legal, or strategic opinions to any party.
- You never sign or initial any document on behalf of the agent, client, or any party.
- You never communicate directly with the other party's client.
- You never advise the buyer or seller on whether the fees on the settlement statement are reasonable, competitive, or fair — that is outside the VA's role.
- You never contact the buyer or seller about discrepancies — the agent manages those conversations.
- You never approve the settlement statement on the agent's behalf — even if it looks correct.
- You never tell the title company to make a correction without the agent's confirmation.
When in doubt: Flag the discrepancy, note the source of your reference (which section of which document), and let the agent decide whether it's an error.
3. Schedule & Trigger
Trigger: Draft settlement statement received from the title company. This typically arrives 1–3 business days before the scheduled closing date. If it has not arrived with at least 24 hours before closing, contact the escrow officer immediately.
Time-sensitive: The settlement statement must be reviewed, corrected if needed, and confirmed before closing. Do not treat this as a low-priority document review task — closing cannot proceed with an unreviewed or incorrect settlement statement.
Sequence context: This SOP runs after Lender Communication — clear-to-close received and in parallel with Final Walkthrough Coordination. It precedes Closing Day Coordination.
If you are unable to complete this task: Notify the agent at the start of your absence or as soon as possible. Flag any open or time-sensitive items. The agent will determine whether to delegate or defer. Never let a recurring deadline pass without flagging it to the agent in advance.
4. What the Settlement Statement Is
The ALTA (American Land Title Association) settlement statement is the final accounting of all money in the transaction — every dollar that flows from buyer to seller, agent commissions, title fees, loan payoff, prorations, and credits.
Buyer's side:
- Debits: Purchase price, loan origination costs, title fees, prorated taxes owed, HOA dues (if any)
- Credits: New loan amount, earnest money deposit already paid, any seller credits
Seller's side:
- Debits: Existing loan payoff, real estate commissions (listing and buyer's agent), title fees, prorated taxes the seller owes for their portion of the year
- Credits: Full purchase price
Prorations: Costs split between buyer and seller based on the closing date. If the seller has already paid property taxes for a period extending beyond closing, the buyer credits the seller for that portion. If the seller hasn't paid taxes for their portion of the year, the seller is debited.
5. Review Checklist
Review each item against its source document. Do not rely on memory — pull the actual documents.
Sale Price
- ☐ Sale price on the settlement statement matches the executed contract
- ☐ If there were any price amendments (repair credits, price reduction), confirm those are reflected
Earnest Money
- ☐ EMD credited to the buyer in the correct amount
- ☐ Amount matches the confirmed EMD receipt from Earnest Money Deposit & Escrow Opening
Loan Amount
- ☐ Loan amount credited to buyer matches the clear-to-close confirmation from the lender
- ☐ Loan type matches what is in the file
Real Estate Commissions
- ☐ Listing agent commission matches the listing agreement
- ☐ Buyer's agent commission matches the executed contract's co-op commission field
- ☐ Commission is expressed in the correct format (percentage vs. dollar — match the listing agreement language)
Seller Credits to Buyer
- ☐ Any seller credit (repair credit, closing cost credit, other concession) is reflected in the correct amount
- ☐ Source: repair agreement, or contract amendment specifying the credit
- ☐ Credit is on the correct side (buyer credit = debit to seller)
Property Tax Proration
- ☐ Calculate the proration independently to verify the math
- Annual taxes ÷ 365 = daily rate
- Daily rate × days seller owns the property in the closing year = seller's portion
- Confirm the closing date used in the calculation matches the actual closing date
- ☐ If the seller has already paid and the buyer owes them back, confirm the credit is correct
HOA Dues Proration (if applicable)
- ☐ HOA dues prorated correctly — seller's portion through closing date
- ☐ Amount matches the HOA dues confirmed in the file
Title Insurance
- ☐ Lender's title insurance policy reflected (required for financed purchases)
- ☐ Owner's title insurance policy (if buyer elected to purchase) reflected at the correct amount
Other Line Items
- ☐ Review any unfamiliar line items and note them for the agent — do not assume they are correct
6. When a Discrepancy is Found
Do not contact the buyer, seller, or listing agent about discrepancies.
Notify the agent and title company:
Hi [Agent Name] — I've reviewed the draft settlement statement for [Address] and found a discrepancy that needs to be corrected before closing.
Issue: [Specific item — e.g., "Seller credit for repairs shows $1,500 but the repair agreement dated [date] specifies $2,000"]
Reference: [Document name and section]
Current statement: $[amount as shown]
Correct amount: $[amount per document]
Please confirm and I'll request a correction from [Escrow Officer Name] at [title company].
[VA Name]
After agent confirms, send the correction request to the escrow officer:
Hi [Escrow Officer Name] — reviewing the draft settlement statement for [Address] / [Buyer Name]. One item needs correction:
[Specific item]: Currently shows $[amount] — per the [repair agreement / contract amendment / listing agreement] dated [date], it should be $[correct amount].
Could you please send a revised draft at your earliest convenience? Closing is scheduled for [date].
[VA Name] on behalf of [Agent Name]
7. Final Statement Confirmation
Wire fraud warning: Wire fraud is the fastest-growing real estate crime in the U.S. Criminals intercept email communications and send fraudulent wire instructions that appear to come from the title company or closing attorney. Before the buyer wires any funds: the buyer must verify the wire instructions by calling the title company directly, using a phone number found independently — not from any email, even one that appears legitimate. The VA's role is to make sure the agent is aware that this warning has been communicated to the buyer before closing day.
After any corrections are made:
- Re-review the corrected statement against the checklist
- Confirm all prior discrepancies are resolved
- Send to agent for review and approval:
Hi [Agent Name] — revised settlement statement received for [Address]. The previously noted discrepancy has been corrected. I've reviewed it again — no remaining issues.
Draft attached. Please review and let me know when you've confirmed it's accurate.
[VA Name]
- After agent confirms: save the final approved version to the transaction file:
[Address] - Settlement Statement - Final - [Date]
Folder location: Transaction file → Closing Documents
8. Checklist
Receipt
- ☐ Draft settlement statement received from title company
- ☐ Received with at least 24 hours before closing — if not, escrow officer contacted
Review
- ☐ Sale price verified against executed contract
- ☐ EMD credit verified against confirmed receipt
- ☐ Loan amount verified against clear-to-close confirmation
- ☐ Commissions verified against listing agreement
- ☐ Seller credits verified against contract / repair agreement
- ☐ Property tax proration calculated independently and verified
- ☐ HOA proration verified (if applicable)
- ☐ Title insurance amounts reviewed
- ☐ All unfamiliar line items noted for agent
Discrepancy Resolution
- ☐ Any discrepancy flagged to agent with specific reference
- ☐ Agent confirmed before correction request sent
- ☐ Correction request sent to title company
- ☐ Revised statement received and re-reviewed
Final
- ☐ Agent confirmed final statement is accurate
- ☐ Final statement saved to Closing Documents folder
9. Tools & Access
| Item | Details |
|---|---|
| Executed contract | [Transaction file — for sale price, seller credits, co-op commission] |
| Repair agreement | [Transaction file → Inspection folder — for repair credits] |
| Listing agreement | [Transaction file — for listing commission] |
| EMD receipt | [Transaction file → from Earnest Money Deposit & Escrow Opening] |
| Lender CTC confirmation | [Transaction file → from Lender Communication & Loan Monitoring] |
| Escrow officer contact | [From Earnest Money Deposit & Escrow Opening — confirmed at escrow opening] |
| Agent's preferred channel | [For discrepancy escalation] |