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The ALTA settlement statement simplifies tracking closing costs in real estate transactions. It serves as an itemized list detailing all expenses the buyer and seller will incur to finalize the deal, functioning like a balance sheet. The document organizes costs into categories such as financial costs, tax prorations, loan charges, escrow, title charges, commissions, government fees, and seller payoffs. There are four types of ALTA settlement statements, with the combined statement being the most common, featuring separate debit and credit columns for both the seller and the buyer to ensure clarity regarding financial responsibilities.