Documents Needed To Sell A House

AleksandarNakic/ Getty Images; Illustration by Austin Courregé/Bankrate

Selling a home is a complex process that requires a long list of documents from start to finish. From the initial listing agreement to mandatory disclosures, here are the key pieces of paperwork in the transaction.

Documents needed to sell a house

If you’re thinking of listing your home for sale, it can be helpful to understand the documents involved, some of which you can gather on your own and some of which will be provided and explained by the professionals who facilitate the transaction.

“There is an enormous amount of paperwork that needs to be reviewed and signed when it comes to selling a house,” says Jade Lee-Duffy, a Realtor with Epique Realty in San Diego. “It can definitely be overwhelming if you don’t have anyone to navigate you through all the documentation. That’s why Realtors are usually part of the process — to explain what each document signifies and to answer questions along the way.”

Here’s an overview of some of the documents you need, what you might see and what you might need to sign over the course of the transaction:

Pre-listing documents

Prior to listing your home for sale, track down the paperwork related to your ownership as well as any changes you made to the property while living there. This includes:

• Documents related to your purchase of the home: This will include the closing documents and a copy of the deed.
• Homeowners insurance policy documents: Keep a copy of your policy handy during the transaction, and be sure to maintain your coverage until the closing has taken place.
• HOA documents: If your home is in a homeowners association, gather up any documents related to the HOA, such as CC&Rs or dues schedules to disclose to the buyer. The title company involved in the transaction will order a review of these and information like the HOA’s financials, as well.
• Major home improvement, maintenance and repair records: Aside from helping the buyer understand upkeep and any improvements to the home, these records can be used to more accurately price the home or dispute a low home appraisal.
• Manuals and warranties: This isn’t a requirement to sell your home, but it’s customary for the seller to provide the buyer manuals for the home’s major appliances and systems, plus any warranty documentation if the seller has one.
• Pre-listing inspection report: If you want to know what repairs a buyer might ask you to make, you can pay for a pre-listing home inspection. This report can help you prepare for these expenses, or even motivate you to make the repairs yourself before your home hits the market.
• Listing agreement: If you’re working with a real estate agent to sell your home, you’ll be required to sign a listing contract. Here’s more on exclusive right to sell agreements.
• Comparative market analysis: “A licensed agent prepares a report of sold, pending and active listings in order to provide the seller with a sense of fair market value for their property,” says Tim Garrity, founder of the Tim Garrity Team at Real in Philadelphia.
• Seller net sheet: Sometimes referred to as the seller’s estimated costs, this document breaks down all the costs associated with selling a home, as well as what the seller stands to profit when all is said and done. “It provides the seller with a sense of what they could potentially walk away with,” says Garrity.
• Preliminary title check: Preliminary title searches help both the real estate agent and seller understand what’s owed on the property, as well as whether there are any issues impacting the title that could hold up the sale or reduce the home’s value. “Similar to CarFax for cars, a title search helps buyers and sellers understand more about a property before deciding to buy or sell,” says Garrity.
• Seller’s disclosures: This mandatory disclosure form provides information to buyers about any significant issues or defects related to the home. The requirements surrounding such disclosures vary by state.
• Mortgage payoff statement: The closing agent will request a mortgage payoff statement from your lender.

Listing documents

As part of putting a home on the market, most sellers typically sign what’s known as a listing agreement with a real estate agent. This document is the contract between you and your agent and generally includes such information as the home’s listing price, the date the property will go on the market and the listing agent’s commission.

If and when you receive an offer, you’ll see the buyer’s proposed purchase agreement. This includes information regarding the method of payment (mortgage or cash), closing date and any contingencies, such as a financing or home inspection clause.

“Besides information about the purchase price, the purchase agreement from the prospective buyer will outline contingency release dates for the investigation of the property,” says Lee-Duffy.

During this time, you’ll also receive the home appraisal report. If you had an appraisal done recently prior to listing, provide that documentation to the buyer, as well.

Closing documents

At the closing, you’ll work with the closing attorney or settlement agent to finalize the sale. At this point in the selling process, you will be required to review and sign many documents, though the exact list of paperwork may vary from state to state.

Some of the documents that are commonly part of closing include an itemized closing statement of the closing costs and financials related to the deal, along with any seller concessions you agreed to; the deed; and a proof-of-sale document.

“The itemized closing statement outlines the closing costs,” says Lee-Duffy. “These could include fees from the title and escrow companies, Realtor commissions, transfer taxes, buyer or seller concessions, HOA document fees and loan payoff amounts.”

If you still have a mortgage on the home, there will be plenty of paperwork related to paying that off and closing the loan, too.

FAQs

• Do I need the original deed to sell my house?
  

  Yes, you’ll need the deed to sell your home. But don’t worry if you can’t locate the original document — it’s possible to obtain a duplicate from your local recorder’s office.

• What is a proof-of-sale document?
  

  Sometimes referred to as a “bill of sale,” this document is a legal record of the property’s transfer in ownership from the seller to the buyer.