What is a settlement statement, and who prepares it?

Many parts of a property transaction can seem complicated and overwhelming. Even though your buyer’s adviser or estate agent usually takes care of the details, it can still be useful for you as a seller or buyer to know which processes and documents are involved in your property transaction. One important document in your transaction, especially in the later stages of the process, is the settlement statement (refusionsopgørelse). But what exactly is a settlement statement, and who prepares it? Read this blog post to find out more about settlement statements and their role in your property transaction. 

What is a settlement statement?

In concrete terms, a settlement statement is a statement of the financial balance between the seller and the buyer in a property transaction. In other words, the settlement statement is an overall division of the home’s costs between seller and buyer, based on the handover date.

A settlement statement contains a number of different cost items between buyer and seller. For example, these may relate to the utilities the seller has paid on account before the handover date, setting out whether the seller has paid too much or too little. They may also concern charges the buyer receives after the handover date but which actually belong to the seller’s period of ownership. The settlement statement therefore shows if one party has paid a cost that should really be paid by the other party.

Who prepares a settlement statement?

The settlement statement is usually prepared by either the seller’s or the buyer’s representative. In other words, it is either the seller’s estate agent or the buyer’s lawyer who prepares the settlement statement, depending on which party the task falls to. The purchase agreement will state whether the seller’s side, the buyer’s side or a third party is to prepare the settlement statement. Normally, the settlement statement must be prepared no later than 7–30 days after the buyer takes over the home. This is to make sure the financial balance between the two parties is in order.

Can I prepare a settlement statement myself?

In principle, you can prepare the settlement statement yourself. However, it is recommended that you get a professional involved who can check that all costs are included and calculated correctly. This is to make sure that everything adds up. A professional adviser in this context could be a lawyer or an estate agent, for example.

Advice from Brikk

With Brikk as your estate agent, you are guaranteed professional, expert advice in every part of your property transaction. We guide you through the entire process and make sure you experience full transparency and peace of mind as a seller. We also offer buyer advice, where we advise buyers through their purchase and secure the best deal. So if you are thinking of selling your home or buying a new one, it is a good idea to book a free consultation with your local Brikk specialist today. The consultation is, of course, entirely without obligation and is simply a way for you to go through your situation with a professional.