Which of the following is true about HUD-1 statements?

The HUD-1 statement is a significant document in real estate transactions that provides a detailed accounting of all the costs associated with a real estate settlement. This document lists all transaction-related costs, including the purchase price, various fees such as loan origination, title insurance, and other expenses related to the closing of the property. It allows both the buyer and seller to have a clear understanding of what they are paying for and what will be received at closing.

The other options do not accurately describe the HUD-1 statement. For example, it is not exclusively for rental properties, nor does it have an annual filing requirement, as it is used primarily in specific transactions rather than for reporting purposes like tax filings. Additionally, HUD-1 statements are not limited to commercial properties, as they also apply to residential transactions, especially those involving federally related mortgage loans prior to the implementation of the TILA-RESPA Integrated Disclosure (TRID) rule. Therefore, stating that HUD-1 statements list all transaction-related costs correctly identifies their purpose and significance in the real estate closing process.