Buying and selling properties is a multi-step process involving several people like buyers, sellers, lawyers, and, sometimes, realtors. With so many people involved in this complex legal process, it’s only natural for you to need several important documents for a seamless and straightforward sales process. If you’re entering a sale for the first time, it’s only natural to be unsure about what you’ll need to complete the deal. Often, real estate transactions require some of the following documents.
A Bill of Sale
A bill of sale after selling your house is vital to have. It’s a legal document outlining the transfer of property ownership from a seller to a buyer for payment or consideration. Most often, they include important information like what was sold, the date of the sale, and how much money was involved in the sale. If a seller made any conditions or warranties, these would also be included in the bill of sale.
A Buyer’s Agent Agreement
If you’re the buyer working with a real estate agency, you might need to sign a contract, known as a buyer’s agent agreement, that outlines the terms of your relationship. Typically, this includes the agreement lengths, the terms relating to an agreement termination, and who will pay the real estate agent’s commission. In most cases, the seller does.
It can be a good idea to keep this agreement for as long as possible as it lists the services the agent will provide and can be important should you have any problems with your sales agent once the deal is done.
A Real Estate Purchase Agreement
Whether you’re buying or selling a house privately or through a realtor, a real estate purchase agreement is a common document all parties have. It’s a legally binding contract that both sellers and buyers sign to confirm they agree about all parts of the sales and purchase process, including all terms, the purchase price, and the closing date.
You might not think it matters whether the buyer or seller fails to meet some of the terms outlined in the agreement, but its legally binding status makes it crucial that you do. It’s a good idea to keep this document in case of legal ramifications related to unfulfilled terms.
A Seller Disclosure Document
The properties you intend to buy or sell won’t always be perfect. They might have unconsented renovations, problems with pests, asbestos, or lead-based paint, just to name a few. When issues about a home are disclosed, buyers and sellers often make their buying and selling decisions based on their awareness of them. It can be crucial to hold onto this document in case you should decide to file a lawsuit related to them or others in the future.
Many buyers perform thorough research before deciding to go through with the purchase of a home. They might request home inspections to pick up possible problems or request appraisals. If a buyer requests changes based on their discoveries, and you agree to them, the original sales contract must be amended. Typically, these amendments are made within a separate document. If they relate to repairs, they are known as repair addendums.
Title Insurance Policy Documents
Title insurance provides protection against anyone trying to make claims of a property being owned by anyone other than you or the person buying your home. Insurers search through public records and look for issues like liens against the property and even fraudulent signatures. These documents can be important to hold onto in case someone tries to make a claim. You can then provide proof that you or another person is the legal owner.
A Home Inspection Report
Home inspections form an integral part of any property transactions. When buyers want to be sure that a property they’re purchasing is sound, they hire a home inspector to look for any current or potential future issues.
The findings are then compiled into a written report, often with photos of any areas of concern. You might like to keep a copy of this report if you decide to purchase a property and want to ensure you rectify any issues that were highlighted within it.
Buying and selling property can be an arduous process, especially with so many experts involved. However, by ensuring you have all these essential documents, you might be well on your way to a stress-free and seamless sale or purchase.
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