WHAT DOCUMENTS DO YOU NEED TO SELL YOUR HOUSE?
In this article we will tell you about the documents you need for selling your home. Selling a house is often a complex process that needs a considerable amount of documentation. Moreover, if you think that selling your home on the local real estate market is straightforward, you’ll be certain a surprise. Selling a home requires plenty of prep-work and, which is mostly paperwork. If case you are considering placing your home on the market, prepare yourself before time by knowing what documents you’ll need. Though not an exhaustive list of everything you’ll need, the following guide by the best real estate agent, Izabella Lipetski, is an excellent place to start. So just relax, prepare a BBQ and read out what Izabella has to say.
1. REAL ESTATE LOAN DOCUMENTATION
When selling your home, you’re required to supply paperwork showing information about your mortgage, in case you have one. Moreover, this documentation must show details about your account, the amount owed, and other associated charges. If you need to get this paperwork, contact the bank, lender, or loan servicer related to your account.
This document will include your settlement amount, as is legally required by the U.S. Consumer Financial Protection Bureau. The payoff amount is the amount you want to pay to satisfy the loan. Make sure that your payoff amount isn’t equivalent to your current balance. Unlike the payoff amount, your accounting balance doesn’t include interest through the date of payoff. If your loan servicer doesn’t provide this number, request it because it’s legally needed
2. MANDATORY DISCLOSURES
As we know, every state in the U.S. has laws about disclosure. If you’re selling a house, you will need to make a disclosure document.
Each state’s laws are different; all of them follow an identical format. If a seller or seller’s agent is conscious of a problem in a house that would affect the health or safety, they’re required to disclose this information to the customer. Some states require more documentation as compared to others, so make sure to research laws in your area.
Most mandatory disclosures relate to faults in the home like asbestos, area environmental pollutants, violent crimes on the property, past legal clashes over the property, and any nuisances present in the neighborhood.
One disclosure that’s applicable nationwide is that the lead-based paint disclosure. U.S. law requires that any home built before 1978 be sold with a lead-based paint disclosure.
3. DEED TO THE HOUSE
To sell your home, you’ll need the first deed that was issued once you purchased it. For several sellers that came years prior, so finding the deed might prove challenging. If you’re unable to find out a replica of your deed, you’ve options for obtaining a new one.
4. REAL ESTATE TAX DOCUMENTATION
You will be required to supply documentation about paid property taxes. Most of the time, you’ll need to show your most up-to-date bill to offer buyers an estimate of what proportion they’ll pay in property taxes.
Note that you simply need to pay unpaid property taxes for your home based on the times between selling and closing. In addition, what taxes you pay depends on the laws of the local municipality where you reside.
5. HOMEOWNERS INSURANCE RECORDS
Though this is often not mandated industry or nationwide, it’s an honest idea to supply proof of house owner’s insurance when selling. Providing homeowners insurance records is a clear way of showing all significant damage and repairs that your home has undergone. It also helps buyers estimate what their homeowner’s insurance costs could be.
6. PERSONAL IDENTIFICATION INFORMATION
As with any official contract, you need to verify your own identity. Today’s real estate industry is troubled with wire fraud, concealment scams, and other greedy behavior. Summing up, verification of your identity is a measure to protect yourself et al. from these scams.
In order to prove your identity, you’ll need a driver’s license or state-issued identification card with a photograph of you. You’ll also need an official piece of sent mail addressed to you. This will be a utility bill or statement. Some states have different requirements, so be prepared to spot yourself no matter where you close your house sale.
7. ORIGINAL SALE CONTRACT
You may need to provide the original sale contract once you shall sell. This is often the contract that you simply signed because as the buyer of the house. This document helps with clarity and transparency and shows critical data such as:
- The original sale prices
- Proof that you simply own the home you plan to sell
- Disclosures that were required at the time you bought the house
- The terms under which you purchased the house
8. FINAL PURCHASE AND SALE AGREEMENT
One of the most critical documents you need to sell a home on the local real estate market is the final purchase and sale agreement. Moreover, this document is made by your real estate agent or attorney alongside the buyer’s agent or attorney.
The final purchase and sale agreement are a comprehensive document that covers all of the essential aspects of the transaction, including the amount, sale price, closing terms, disclosures, tax information, and more. A genuine estate transaction ultimately fails unless all parties comply with the words in the final purchase and sale agreement.
Izabella Lipetski is the best real estate agent in California. As the best real estate agent, she also assumes the responsibility of informing you about all the documents you will need to sell your home. This material is for informational purposes. If you need any help, contact Izabella Lipetski to schedule a meeting.