Thursday, August 10, 2023 / by April Castillo
- Closing Disclosure outlines the final terms of the sale, including the purchase price, loan details, and closing costs. It is essential for tax purposes and as proof of the transaction.
- Settlement Statement (HUD-1) provides a detailed breakdown of all the financial aspects of the sale, including the seller's and buyer's expenses, such as prorated property taxes and closing costs.
- The sales contract is the agreement between you and the buyer, outlining the terms and conditions of the sale. Keep a copy of this document for reference and potential legal issues that may arise in the future.
- The deed is the legal document that transfers ownership of the property to the buyer. Retain a copy of the deed as proof that you are no longer the legal owner of the property.
- Title Insurance Policy protects the buyer against any potential claims or issues related to the property's title. Keep a copy of this policy for reference and in case any title-related disputes arise in the future.
- Retain copies of property tax assessments and payments made during your ownership. These records are important for tax purposes and any potential disputes or discrepancies regarding property taxes.
- If you provided a home warranty to the buyer as part of the sale, keep the warranty documents and related correspondence for reference and any future warranty claims.
- If you obtained any home inspection reports during your ownership or before the sale, keep copies of these reports. They can be useful for disclosing the property's condition and addressing any potential issues raised during the inspection process.
- If you had a mortgage on the property that was paid off with the sale proceeds, retain the mortgage payoff statement as proof of the loan's satisfaction.
- Keep records of your homeowner's insurance policy and any related claims or payments made during your ownership.
- If you made any significant improvements or renovations to the property before selling, keep receipts and records of these expenses. They can be used to demonstrate the property's value and potentially reduce capital gains tax liability.
It is advisable to keep both physical and digital copies of these documents in a safe and easily accessible place. Organizing them in a file or folder dedicated to your real estate transactions can help ensure you have all the necessary records readily available when needed.
Here in Sexton Property Group, we make sure that you get the digital copies of these documents, and at the same time, explain the content and purpose of each document in detail.