Closing Paperwork

Real estate transactions require a large amount of paperwork. Both buyers and sellers can expect to sign a number of documents. In addition, each side may be asked to provide documents before closing can proceed. Understanding the paperwork involved in the closing of a home sale can make the process easier and less confusing. The most common documents found at closing include:

Proof of Homeowner’s Insurance- A home owner’s insurance policy protects a property against damage. The seller must carry a policy until closing, and a buyer must show that they have purchased a policy before taking possession of the home if they have a mortgage loan.

Deed- The deed to a house indicates ownership. At closing the deed will be publicly recorded to reflect the change in ownership of a property.

Mortgage Documents- The majority of buyers secure a home mortgage loan to finance the purchase of a home. The mortgage contract between the lender and borrower is recorded to show the lender as the main lien holder of the property.

Records of Services and Warranties- While not legally required, most sellers provide documents pertaining to any warranties on the home, anything within the home, or on any services that have been done. It is also a good gesture to give the buyer a record of any maintenance services that have been performed on the home.

Official Land Survey and Plot Plan- This document can be obtained through public records. An up to date copy is required at closing.

Certificate of Title/ Title Insurance Policy- The buyer and seller will be given a certificate of title by the title company. This certificate is proof that the title does not have any liens or attachments that must be cleared before closing.

While these are the common documents involved with the closing of a home, each situation is unique. You will be advised of everything required prior to closing. Whether you are a buyer or a seller, it is prudent to carefully review all of the documents provided to you prior to the close of escrow.

AS985