Keep or Shred? A Post-Closing Document Checklist for Home Sellers and Home Buyers.
My wife could not exactly be called a pack-rat but saving legal documents is definitely on her ‘must-be-OCD-about-this’ list. It’s really helpful to know what documentation should be saved and what can go. In my humble opinion, the document that needs to stay readily available is Closing Settlement Statement… keep it right where you can find it quickly. Come next tax season it could save you a bundle. Just so you know, the Settlement Statement can be replaced. Just contact your loan officer or the Title Company that handled your escrow and they should be able to provide you with a copy. Several other documents are critical and should be stashed away somewhere safe. Read on.
By Barbara ProninDee
The transaction has closed! The sellers are eager to get on with their move. The buyers want to start unpacking. But when the handshakes are over, everyone will leave with a daunting stack of paperwork. How much of it needs to be retained, and what role should the agent play in ensuring the right documents are kept?
“It’s important to me that clients understand the importance of their closing documents,” said veteran agent Lynne Eliopoulos at ERA Key Realty Services in Framingham, Mass. “I’m happy to provide clarification as needed, and I encourage my clients to keep all the paperwork in a safe, secure place, because much of it will be needed for tax purposes or when and if they ever wish to sell.”
While some of the paperwork may vary from state to state, much of the closing documentation is standard in all cases. What are the documents buyers and sellers should file away for future reference?
For Buyers:
- Closing Disclosure/ALTA Settlement Statement– Itemizes all loan fees, points, hazard insurance, commissions, title insurance fees and other buyer costs associated with the closing. The Closing Disclosure also summarizes the terms of the mortgage loan, including the annual percentage rate and rescission period.
- Deed of Trust and Note – Spells out the legal terms of the mortgage obligation and the agreed-upon repayment terms
- Deed – Transfers ownership to the buyer (the original deed is retained)
- Affidavits – Binding statements by either party – such as an affidavit signed by the seller stating they have not incurred any liens
- Riders – Any amendments and/or addendums to the sales contract changing and/or adding to original terms
- Insurance Policies – These provide a record and proof of coverage
- Disclosure/Inspection Data – Copies of seller’s disclosures, records of home and pest inspection and proof of any repair work done
For Sellers:
- Seller Closing Disclosure/ALTA Settlement Statement -– Itemizes all seller costs including the payoff of all seller encumbrances/liens against the property
- Owners Title Policy – Evidences your right to sell the property
- Deed –Transfers title to the buyer upon closing (a copy is retained)
- Mechanic’s Lien Waivers – Provides assurance that an unpaid contractor will not place a lien on the property for pre-closing work
- Bill of Sale – Documents any personal property items you are selling along with the real property, such as a barbecue grill, furnishings or light fixtures
Contact your title agent for more information on how you can keep your clients informed, even post-closing.
Barbara Pronin is an award-winning writer based in Orange County, Calif. A former news editor with more than 30 years of experience in journalism and corporate communications, she has specialized in real estate topics for over a decade. Reprinted with permission from RISMedia. ©2016. All rights reserved.
More Resources for Home Sellers and Home Buyers
Our Buyer’s FAQ page has 9 of the most frequently asked questions from Home Buyers, along with 10 additional resources for Home Buyers at the bottom of the page.
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Thinking of Selling your home? First check out our 9 FAQs for Sellers. Then read on, there are 9 additional resources for Home Sellers at the bottom of the page.
Home Buyer’s Frequently Asked Questions
Home Seller’s Frequently Asked Questions
