All real estate closings involve the review and signing of a lot of documents. There are way too many to list in one blog, but it is possible to break down the types of documents into a few basic groups. In this week’s blog, we’ll talk about the main real estate transfer documents you’ll see at closing and what they mean.
Real Estate Transfer Documents
Real estate transfer documents are all used in one way or another to transfer ownership of the property from the seller to you, the buyer. These are the main documents used to transfer the property.
The property deed transfers ownership of the property from the seller to the buyer. As the buyer, your obligation with respect to the deed is to state how you wish to take title to the property. The deed is recorded by the county recorder of deeds and made a part of the public record.
The Bill of Sale
The bill of sale is used to transfer personal property associated with the house from the seller to the buyer. Things that will be on the bill of sale include heating and cooling appliances, security systems, window treatments, etc. All personal property included in the sale will be listed here, or in a separate contract, to which the bill of sale will refer.
Affidavit of Title
This document is also known as the seller’s affidavit, and goes by other names depending on where the sale is occurring. The purpose is the same no matter the name. In this document, which is sworn and notarized, the seller confirms that he or she is the rightful owner of the property and has the right to transfer it. The seller also discloses any information regarding title deficiencies in this document.
Transfer Tax Declarations
In this document, the buyer and seller sign documents that disclose the purchase price of the property. This information is used to calculate real property transfer taxes assessed by the state, county, and/or municipal government.
Buyer/Seller Settlement Statement
This documents lists all monetary transfers that are occurring between the seller and buyer, and is signed by both parties. The closing agent uses this information to prepare the HUD-1.
The HUD-1 shows all monetary transfers occurring between all parties involved in the closing.
Real Estate Closing Services from Colony Title Associates
Colony Title has been in business since 1995 and handles more than 2,000 real estate closings per year. If you have any questions or would like to speak to a representative about closing, please give us a call at 410-884-1160 or visit our website for more information.