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Legal Documents Needed To Sell Your Own Home

By Edited Nov 13, 2013 0 0

FSBO Paperwork You need to Have In Order

As you should be aware, selling your home involves a variety of legal documentation. As the seller, you are responsible for providing these documents and if you fail to fill in the details accurately or provide the requisite paperwork, you could be on the receiving end of legal action. Each document serves its own unique purpose. For example, the deed, which is necessary in order to show that you legally own the property, contains a description of the property. You also need proof that all liens and bills on the home are paid or up to date and if there are outstanding liens, separate paperwork is required. You must also provide disclosure of the property’s condition in most cases.

Documents For Charges
You will need property tax receipts to prove that all taxes on the home have been paid. If there are special charges such as fees for using a public sewer or waste disposal, receipts for these charges will also need to be provided. It’s important to contact your water company to get a statement of your account. A financial disclosure statement lists all of the liens on your property and informs all parties of any liabilities attached to the home. Although it is not required in all cases, you will normally need to have the payment history from your homeowner’s insurance policy. In addition, a general disclosure statement lists any issues or liabilities with the property including any rental agreements you have with current tenants.

Benefits Of Legal Documents
Selling a home is a major financial undertaking and you need to have all your bases covered. If you don’t have all your debts relating to the property paid off by the time of the sale for example, you could easily face expensive legal action. Showing tax receipts proves that you have paid all property tax bills and are not responsible for any new charges that arise. Showing evidence of homeowner’s insurance enables the buyer to quickly buy a new policy and speeds up the selling process. Special fees such as water rates can be prorated which means you only pay for usage when you were still the official owner. Copies of current bills ensure you are not charged for services you didn’t use.

Myths
Contrary to popular belief, you don’t need the original deed in order to sell your FSBO property. You can just get a certified copy from the county recorder’s office which houses the record of the property. This copy usually only costs $5 and can be used as the official deed to the house in the event of a sale. You can also get a copy of original mortgage loan documents from the recorder’s office. This means you still have a legal copy for the attorney to look at should you misplace the originals. You can even get a copy of the loan documents if you are not using an attorney during the sale. Therefore, don’t believe the myth that only original documents are accepted.

The legal paperwork that needs to be provided during a sale can seem to be a burden but in the long run, it will save you a lot of trouble and could prevent you from facing legal action in certain cases. Get your legal documents in order and speed up the sale.


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