
What documents will you sign or review at closing?<\/h2>\n
Although sellers don\u2019t have as much to sign at closing as buyers, as Yoo indicated, there are still some documents that require the seller\u2019s signature. Here are some:<\/p>\n
1. The deed to your home: <\/strong>This is the official document used to convey ownership<\/a> from the seller to the buyer. After closing, the deed must be filed with the county recorder. This is the only thing the seller has to sign at closing, according to van Ravensway. \u201cAll the others are signed ahead of time.\u201d<\/p>\n 2. Closing statement:<\/strong> Also called the settlement statement<\/a>, this document itemizes all money owed on closing day. Costs can include transfer taxes, property taxes, and homeowners association fees. Your agent should provide a copy for your review prior to closing.<\/p>\n 3. Closing disclosure:<\/strong> As a result of the subprime mortgage crisis<\/a> from 2007-2010, the Consumer Financial Protection Bureau<\/a> now requires that buyers are provided with a Closing Disclosure<\/a> listing loan costs, fees, and information no later than three days prior to closing for buyer review. Sellers who agree to pay part of the buyer\u2019s fees for obtaining a loan will also receive a copy of the closing disclosure.<\/p>\n 4. The affidavit of title:<\/strong> This document affirms that the seller has the sole right to sell the property. It also details any legal issues connected with the property, such as liens and defects \u2013 both of which must be resolved before the deal can close.<\/p>\n 5. Bill of sale:<\/strong> The bill of sale<\/a> denotes any and all of the personal property the seller is leaving to the next owner, such as appliances and window treatments.<\/p>\n 6.<\/strong> Most recent tax statement:<\/strong> Property tax receipts enable the buyer to estimate the taxes they\u2019ll owe on their new property. Whether the buyer or the seller owes property taxes at closing depends on the local real estate tax schedule. Some municipalities collect in advance \u2013 which could result in a refund for the seller. However, other cities and towns collect property taxes in arrears \u2013 which could result in the seller owing at closing.<\/p>\n 7. 1099-S tax form:<\/strong> Unless you qualify for the capital gains tax<\/a> exclusion, which covers up to $250,000 of the net profit on the sale of your home (or $500,000 if filing jointly), you\u2019ll probably have to fill out a 1099-S form<\/a> to report the taxes you\u2019ll owe to the IRS on the sale of your home.<\/p>\n Once you\u2019ve made it through closing, there are just a few things left on your to-do list.<\/p>\nPost-closing seller\u2019s checklist: What comes next?<\/h2>\n
\n
\n
\n
\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t
\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t
Some dos and don\u2019ts sellers should know<\/h2>\n
\n