The Seller's Closing Documents

The seller’s role throughout closing has pretty much been to stay in touch with the closing agent just to be sure everything is moving along so that closing happens when scheduled. Even the seller’s stack of paperwork is nothing compared with what the buyer will be signing.

There are, of course, variables depending on where you live and the specifics of your transaction. But here are a few of the documents you’re likely to sign at closing:

* Final closing instructions

Practice varies across the country, but if buyer and seller do not sign closing instructions when the escrow account was opened, they will do so at closing. Experts advise that you make sure the debits and credits balance to the penny.

*The HUD-1 settlement statement

The closing agent prepares this accounting of all the money involved in the transaction. This statement is required by federal law. There is a buyer’s column and a seller’s column on this form. (You should have received a copy for review prior to the closing meeting.)

Double-check all figures and look for clerical errors before signing the HUD-1 form. Check everything from the sales price to the payoff balances on your loan and the prorations for tax and utility bills.

*Certificate of title

A statement swearing you have the right to sell the property.

*The deed

The deed is the instrument for transferring title. The type of deed used varies by state — grant deed, warranty deed, etc. — but the purpose is the same. Ownership transfers to the buyer when the signed deed, which includes the legal description of the property, is recorded at the county courthouse.

*Loan payoff

This document shows your loan payoff amounts to be paid at closing.

*Mechanic’s liens

You may be asked to sign a document swearing there is no possibility of a lien being placed against the property by a subcontractor or other laborer for money due them.

*Bill of sale

This paperwork itemizes any personal property — the backyard barbecue and coffee table — you agreed to sell your buyer and transfers ownership to them. Verify that everything you agreed to sell is listed and correctly priced.

*Statement of closing costs

Your signature on this document says you were informed about the various fees and closing costs ahead of time.

*Statement of information

The title company requires that you swear you are who you say you are. Take a driver’s license or valid passport to the closing for ID.
Read everything, redo all math. Speak up before signing a document if you find an error or if you question that you really promised to give your buyer credit for something, or credit for the amount listed.

Related links: Timing the Closing for the Seller; Buying and Selling at the Same Time; Closing on a House for the Buyer