The amount of paperwork when it comes to buying or selling a home is considerable, but it's also necessary so that everyone involved in the home sale has the information they need to make decisions. The buyer, lender, title company, and legal authorities are all looking for specific official statements and agreements before a home sale can be completed, so learn more about what's included before listing a home.
Title and Deed
These two terms have a tendency to be mixed up, so it's important to keep them straight. The title states who has the rights to the property, while the deed refers to the paperwork needed to transfer the title from one person to another. Property disputes between divorcing couples, neighbors who may claim a portion of the land as theirs, and outstanding liens on the home will all need to be disclosed on the Seller's Affidavit (or Affidavit of Title) before the sale is finalized. The deed has to be provided to the buyer with the terms of the seller, and it's the buyer's responsibility to approve the document before signing. Deeds need to be officially filed with local authorities to be binding.
Bill of Sale and Inclusions
The bill of sale lists the property that will be transferred from the seller to the buyer in detail, so there is no confusion in the event of a dispute. The bill of sale typically includes items like appliances, light fixtures, and window treatments. If a seller leaves their satellite dish on the roof by accident, they are allowed to come back and claim it so long as the satellite dish was not listed as part of the property transferred to the buyer. Sellers may also arrange for certain property to be excluded from the bill of sale for the buyer. For example, if a buyer wishes for an old oven to be removed before move-in, this can be formalized between buyer and seller.
Sellers will need to have their financing and insurance information ready, as well as the original sale contract for the home. Unless a home is being sold with no contingencies (as-is), the seller should also have documents ready to prove their home is up to code and meets all zoning regulations. This includes all documentation and receipts for any Wandermere home renovation or improvements projects, as well as a certificate of occupancy. Finally, sellers should be ready to discuss taxes with the buyer. This may even include agreeing upon and declaring the taxes prior to the completion of the sale. The exact requirements will depend on the municipality the home is located within.
The closing paperwork needs to be as detailed as possible, so the buyer is as protected as possible in the case of a possible dispute or legal anomaly. It will need to confirm or deny any property disputes, and all information must match the data listed on the title. If there's any discrepancy, it can delay the close of escrow or it can potentially cause the sale to fall through completely, which is among the mistakes that need to be avoided when selling a home.
This is just one of the reasons why it's important for buyers and sellers to agree on everything prior to the closing paperwork. Minor changes may require extensive corrections on multiple documents. Some title companies may also require an official Commitment document that further reiterates any conflicts as to the state of ownership on the property.