When buying or selling a property, there are a multitude of documents that need to be prepared, filled out, and signed. In an effort to demystify the load of paperwork needed complete the closing of a property, the checklist below should help guide you in explaining what some of them entail:
Deed
A deed is a legal document that the seller transfers to the buyer at closing. The deed provides ownership interest in the property; this means it provides you with your rights to own, live in, or rent out your property without anyone else having a right to claim it as their own. The deed will include your name and a description of the property.
Certificate of Occupancy
A certificate of occupancy is a document ensuring that building codes and zoning ordinances are complied with. This legal document helps give you the confidence your home is safe to live in, according to New York State regulations.
Closing Disclosure Form
The closing disclosure form is a mortgage lending document. If the purchase of the property is financed by a mortgage, the mortgage lender will use this form to provide the parties with a list of all credits to the buyer and seller in the transaction. This form will include information as to your loan amount, interest rate, projected monthly payments on your loan, seller credits toward the closing costs, and any additional costs at closing.
Statement of Closing Costs
The closing statement is a legal document outlining the fees and costs involved in the real estate transaction. For example, this document may include any adjustments made to the purchase price of the property, down payments made, taxes paid, and terms of the loan (if one is obtained by the purchaser).
Mortgage Payoff Statements
A mortgage is considered one type of encumbrance on a property’s title. This means that the lender who had issued the loan maintains a claim against the property, in addition to the true property owner(s). Often, any encumbrances, or any additional claims, on a property for someone other than the owner are revealed by a title search. A mortgage payoff statement is a document typically prepared by the seller’s lender to show the amount that the seller of the property needs to pay to close their loan, and therefore remove the encumbrance on the property they are selling.
Smoke Detector and Carbon Monoxide Detector Affirmations
These documents serve to assure you that there is a smoke detector and carbon monoxide detector on the property.
If you’ve made to this stage in the process, congratulations! Buying or selling a property is no easy feat, and the closing is the last step before keys exchange hands. Please keep in mind that your specific transaction may require more documents, depending on your ownership in the property, the type of property you are purchasing or selling, as well as other factors.
Call Sabrina Rabban, Esq. PLLC to advise you and assist you in buying your dream home, or closing a chapter and selling yours.