The 700 Series Items on the HUD-1 Real Estate Settlement Statement

This is the section with commissions, and is usually the first to be examined!

The HUD-1 real estate settlement statement form is divided into numbered sections in series of "100's". Each series has some common theme in type of items, or a common relationship of the items in the transaction. The 700 series deals with the commissions to the brokerages.

This section shows the contract sales price on which the commissions are to be calculated, as well as the percentage. The dollar amounts are calculated and shown as two line items usually, one for each of the brokerages involved. Though very often the amount of the gross commission is split 50/50, these numbers can be shared in any proportion previously agreed to by the brokers and principals.

This section's items can be expanded for other amounts related to the commissions. The most common would be any taxes associated with commissions, as some states charge taxes on services.

These amounts normally show up in the right column of the statement, "Paid from Seller's Funds at Settlement", and are a DEBIT to the Seller side.