Today I want to give you an inside look of some of the questions that we get a lot, namely: What kind of documents and paperwork are we going to see when we sell our house? What kind of things do you want to familiarize yourself with?
One of the big ones that you’re going to need to know about (if you bought a house before you might be familiar with this) is the property deed. The Property Deed is something that actually shows the ownership of your home, your specific property. This is something that gets transferred to the buyer when you do close your home. Simply put, it is done by the seller signing it. This transfers it effectively over to the buyer.
The next one is the actual Sales Contract The Sales Contract is the contract that you make with the buyer of your property. This is important because it contains all the different details of the contract, from the price to inspections to what kind of timeline you’re looking for closing. It includes all the other end parts that go with it– is the buyer or seller paying closing cost, what type of loan/funding, do they want a walk-through? The most important part is that this contract has to be signed and dated to be a valid contract. And keep in mind that once it’s signed, that it is a legal binding document and it will need to be enforced by both parties.
The Property Disclosure form is another big one, especially for the seller. One that you’ll need to be familiar with–regardless of whether you inherited the property or you’ve lived there for 20 years. This is a form that a seller will need to fill out stating anything that they know to the best of their ability about the property. Whether something is being fixed, or if there is some issues that you are aware of. Even just something quirky with the property that you know, that may affect a buyer’s decision. A very extensive property disclosure is the best way to cover yourself in terms of any kind of liability by disclosing them first, rather than a buyer finding out about them later.
Another big document is the Title Report. Whether you’re using a title company or you are going through an attorney, they will need to do a title search. This is when they go back into the chain of title for the property, sometimes it’s up to 50 years– showing who all has owned it before. This is important especially if there is anything in probate, if there are potential title errors or any other issues or liens on the property. For instance, an owner 20 years ago got work done on the property and never paid the contractor who did the work, so they put a lien on the property. This can be something that can keep your property from selling so it’s important to be aware of these things. Every time you close on a property, make sure they do a title search, in case any of these things come up and either delay or cancel your closing.
The home inspection report may be one of the most important documents a buyer will see during a home purchase. This is obviously something a seller can do either before listing or a buyer can request one once under contract. A home inspection mainly just shows the overall health of the home. With the property disclosure everything known should be disclosed, but with the inspection report there is a more in-depth look. A licensed home inspector takes a general look over all different aspects from plumbing to electrical, to the structure and HVAC system to see if there any issues that you aren’t aware of. This is essentially important for both sides to see if there’s something that you didn’t know about that needs done, or that the buyer needs to be made aware.
The closing disclosure is what you receive at closing, going over all the fees–like the property taxes, the proration and other closing fees. These fees include costs like appraisal, surveys, title fees, search fees, deed prep fees and then the commissions that come out of usually the seller’s side. Sometimes we as realtors do a a seller net sheet when we receive an offer–and this can help negotiate different offers and see what fees and other associated costs might come along. Those are the normal fees, and sometimes buyers might ask for some closing costs or other seller concessions and so those things are to take account of when you’re what you’re going to actually take home after the sale.
These documents are of course, not all inclusive–there could be several other things that go along with them, but these are generally the majority of the documents you’re going to deal with in a closing or selling your house. Keep in mind you’re not expected to remember all of this, but it’s just a good overview to get you started on what to expect when you do sell your home. If you have a question about any of these documents let us know!
-Ashleigh Mangini with Team Mangini and Superior Plus Realtors.