What does a "single entry" on a closing disclosure statement refer to?

A "single entry" on a closing disclosure statement typically refers to amounts that represent expenses paid by one party to an outside entity. This type of entry is a straightforward reflection of a specific cost that one party bears, such as various fees associated with the transaction, and is reported as a single line item on the statement.

In real estate transactions, a closing disclosure is used to detail all financial aspects leading up to the closing. When a single party pays a fee directly to an outside entity, this is clearly delineated in the statement to ensure transparency and clarity in financial liabilities. This helps both the buyer and the seller understand their respective financial responsibilities and prevents confusion about who is paying what.

Understanding the nature of entries on closing disclosures is crucial because it affects how costs are allocated between the parties involved. Recognizing a single entry as an expense paid by one party clarifies financial accountability in the transaction.