HUD-1 Form: A Guide for Australians with US Property Interests

For most Australians, the property settlement process involves familiar documents like the Contract of Sale and the Settlement Statement. But if you’re buying or selling real estate in the United States—whether as an investor, expat, or dual citizen—you’ll likely encounter a document called the HUD-1 Settlement Statement. Understanding what this form is, how it’s used, and why it matters can help you avoid confusion and protect your interests in cross-border transactions.

What Is the HUD-1 Form?

The HUD-1 form, also known as the HUD-1 Settlement Statement, is a standard document used in the US to itemise all charges imposed on buyers and sellers during a property transaction. Historically, it’s been a staple for real estate closings involving federally related mortgage loans. The form details everything from purchase price and loan fees to taxes, insurance, and agent commissions—providing a transparent, line-by-line breakdown of the financials involved in the deal.

• Used for: Residential and some commercial property settlements in the US

• Required by: US Department of Housing and Urban Development (HUD) for most transactions before October 2015

• Modern update: Since 2015, the HUD-1 has largely been replaced by the Closing Disclosure for most consumer mortgages under new regulations (TRID), but is still used for reverse mortgages, all-cash deals, and certain other transactions in 2025

Why Should Australians Care About the HUD-1?

While the HUD-1 form isn’t used in Australian property transactions, it’s crucial for:

• Australians buying, selling, or inheriting US property: You’ll need to understand the HUD-1’s role in your settlement, especially if you’re financing the purchase or dealing with a reverse mortgage.

• Taxation and reporting: The HUD-1 is an official record of property sale details—useful for Australian expats who need to report foreign income or capital gains to the ATO.

• Comparing settlement processes: Knowing the differences between US and Australian settlement documents can help you spot potential risks or discrepancies in cross-border deals.

For example, a Sydney-based investor purchasing a rental property in Florida in 2025 will receive a HUD-1 (or Closing Disclosure) outlining all transaction fees. This document may be required by their Australian accountant to accurately report foreign investment income and deductions.

How Does the HUD-1 Differ From Australian Settlement Documents?

Australian and US property settlement systems share some similarities, but key differences can catch buyers off guard. Here’s how the HUD-1 stacks up against Australian documentation:

• Level of detail: The HUD-1 is more granular, with specific line items for every conceivable fee, credit, and adjustment. Australian settlement statements tend to be simpler but cover similar broad categories.

• Regulatory environment: In the US, federal law (RESPA and now TRID) mandates the use and format of the HUD-1. In Australia, state-based laws govern settlement procedures and documentation.

• Disclosure requirements: The HUD-1 must be provided to both buyer and seller at least one business day before closing (except for certain exemptions). In Australia, there’s no national requirement for a pre-settlement disclosure statement, though some states require adjustments to be confirmed before settlement.

In 2025, the US continues to refine its real estate disclosure rules, with the HUD-1 remaining relevant for non-standard transactions. Australians involved in such deals should ensure they receive and review the document carefully, ideally with the help of a cross-border legal or financial advisor.

Tips for Australians Handling HUD-1 Forms in 2025

• Double-check the details: Review all line items for accuracy—mistakes can lead to unexpected costs or tax complications.

• Keep copies for your records: The HUD-1 is essential for tax reporting both in the US and Australia.

• Ask about Closing Disclosure: For most consumer mortgages, you’ll receive a Closing Disclosure instead of a HUD-1. Know which document applies to your deal.

• Understand the timing: Settlement timelines and document delivery rules differ between Australia and the US—factor this into your planning.

The Bottom Line

The HUD-1 form is a cornerstone of US real estate settlements, and while it may seem foreign to most Australians, it plays a vital role for anyone with property interests across the Pacific. By understanding its purpose, content, and the key differences from Australian practices, you’ll be better equipped to navigate cross-border property deals in 2025 and beyond.