Forms, Forms and More Forms: Paperwork to Prepare When Selling a House

The paperwork is one of the most confusing parts of the home-selling process. Selling real estate is a process that requires extensive documentation, much of it written in confusing legal language. Knowing what to expect when you sell your home can quell any nervousness about the selling process and help you make the right decisions when trying to sell. Once you understand it all, preparing the right paperwork before putting a home on the market can help make the process smoother and more efficient.

Listing Contract

A listing contract is an agreement that you make with your listing brokerage. Once signed, the contract cannot be broken or taken back unless specified in the contract. The listing contract names the responsibilities of the licensee as well as the responsibilities of the homeowner. Homeowners are responsible for providing accurate information about the home, outstanding balance on the mortgage, paperwork regarding the zoning and value of the home, and other related details. All of this information must be disclosed when the home goes on the market.

Documents Related to the Home

When selling a house, it is important to gather all of the necessary paperwork related to the property. Two key documents are the deed or title of the house and any permits or certificates issued for the house, and sellers will also likely need to disclose any issues in the property that might not be easily found in an inspection.

Property Deed

The deed is an important document that shows the legal owner of the property and is needed to transfer the ownership of the house from the seller to the buyer. The seller should ensure that the deed is up-to-date and valid, and that all the information is correct. If they don't have the original deed, there may be options for requesting a copy from a local office, but it's best to have kept the original in a safe place.

Once the home sale is finalized, the title will be transferred to the buyer. The new deed should have the buyer and seller's names on it, along with signatures and a description of the property. It's important to make sure that the deed is properly signed and notarized to ensure the sale is legally binding.

Permits

Before selling a home, make sure that all permits for construction, renovation, or any other work on the property are in order. Not all home improvements require permits, but larger projects like adding a deck or finishing a basement usually will. Apart from being against the law, unpermitted work puts residents in the home—present and future—at risk. Having the permits ready during selling and showing them to the buyer will give them peace of mind, as they'll know the property is compliant.

The seller should also review documents related to any zoning or building ordinances that may affect the property, as regulations can change over time. It is also a good idea to keep copies of all the paperwork related to the permits for one's own records.

Defect Disclosure

Home sellers may be required to fill out a defect disclosure form to list the latent defects in the property. Latent defects are defects that make the property dangerous or unfit for inhabitation. Determining what constitutes a latent defect and properly filling out the form can be challenging for some homeowners. To begin with, many homeowners are unaware of defects in their property. In addition, many homeowners who are aware of defects in their property may not be aware of what constitutes a danger to others and what makes their property unfit for inhabitation.

Working with the real estate agent cand home inspector an help with this process. Your licensee will help you determine what constitutes a latent defect and will help you ensure that the form is filled out to the extent that is necessary.

Purchase Offers

A purchase offer is a form that a potential buyer submits to the seller. Purchase offers contain a variety of information about the buyer, the sale price, the offer being submitted, the date of completion of the sale and the date that the buyer will take possession of the home. Homeowners who are considering an offer from a buyer will have a variety of options.

• Accept the offer as is.
• Reject the offer.
• Ignore the offer.
• Counter the offer.

Countering an offer involves rejecting the original offer and submitting a new offer to the buyer, perhaps by including home contingencies with your original offer. The process can be lengthy, with buyers and sellers making many offers to one another before a final agreement is reached. When trying to decide if an offer is a good one, consult with your real estate agent. They can provide a market analysis of your area and tell you about sale prices of comparable properties in your community.

Documentation is crucial when selling a house. It helps to protect both the buyer and the seller in the transaction. Proper paperwork not only makes the process smoother but also helps ensure that all parties involved in the sale of a home agree that all the necessary steps have been taken.

Even with the correct paperwork, selling a home can be a stressful and intimidating process. Working with a professional and reputable real estate agent can help make the process more enjoyable. If you're thinking about selling your home, contact a reputable brokerage. Your real estate agent can advise you throughout the process and can help you get the best deal for your home.