Closing process: What Documents will you require from the buyer and seller for closing?
This list is not exhaustive and additional documents may be required based on specific circumstances or local regulations. Miamigo Title can help both buyers and sellers to consult with their real estate agents or attorneys to ensure they have all necessary paperwork prepared for a successful closing.
For a real estate closing, both the buyer and the seller need to provide various documents to ensure a smooth and legally compliant transaction. The exact documents required can vary depending on the state and the nature of the transaction, but here's a general list of what might be needed from each party:
Documents Required from the Seller:
Proof of Identity: Valid government-issued photo ID (e.g., driver’s license or passport).
Deed to the Property: The legal document that transfers property ownership.
Bill of Sale: This document details any personal property that is being included in the sale.
Property Title: Any documents related to the title, especially if there are known issues.
Mortgage Payoff Information: Details on the current mortgage, including account information and the payoff amount.
Homeowners Association (HOA) Documents: If applicable, documents related to the HOA, including fees and covenants.
Property Tax Information: Documentation of current property tax status.
Inspection Reports: Any relevant property inspection reports completed during the selling process.
Proof of Repairs or Improvements: If agreed upon in the contract, proof of any repairs or improvements made before closing.
Closing Statement: A document detailing the financial transactions and obligations of the seller in the closing process.
Documents Required from the Buyer:
Proof of Identity: Valid government-issued photo ID.
Proof of Homeowners Insurance: Evidence of a homeowners insurance policy is usually required before closing.
Loan Documentation: If the buyer is taking out a mortgage, all paperwork associated with the loan.
Proof of Funds: For the down payment and closing costs, such as bank statements or a cashier’s check.
Inspection Reports: Reports from any pre-closing home inspections.
Closing Statement: A document outlining the buyer's financial transactions and obligations in the closing.
Home Warranty Documentation: If a home warranty is part of the deal.
Title Insurance Documentation: Proof of title insurance for the protection of the buyer (and lender, if applicable).
Common to Both Parties:
Closing Disclosure (CD): A detailed outline of the loan terms, monthly payments, and closing costs for financed transactions.
Purchase Agreement: The contract that outlines the terms and conditions of the property sale.
Amendments or Addenda: Any changes or additions to the purchase agreement or other documents.
Other Possible Documents:
Power of Attorney: If either party cannot attend the closing, a power of attorney may be needed.
Gift Letter: If part of the buyer’s down payment is a gift, a letter stating that the funds are a gift and not a loan.
