After all the legwork and due diligence, you’ve finally found your dream home – and you are ready to buy it. Congratulations! On closing day, you will be paying for the property, your lender (if you are working with one) will fund the home, and the seller will transfer the title into your name.
Every single one of these tasks involves paperwork; and this makes home closing one of the most crucial stages in the real estate transaction process. As such, familiarizing yourself with the real estate closing documents can ensure a smooth and faster process.
Here are some of the property transfer documents that you need to look out for when closing a home.
The deed – this document defines how the property will be owned (sole ownership, trust or joint tenancy) and it transfers the property from the seller to the buyer. Once the ownership has changed, the deed will be recorded at the county recorder of deeds. This way, anyone searching the county records will see that you are the owner of the property.
Seller’s affidavit – also known as an affidavit of title, this is a sworn and notarized statement that the seller provides to confirm ownership of the home. It also outlines any issues on the title such as liens, leases or any work on the property that can potentially create a lien or title disputes.
Transfer tax declarations – Illinois, like most states, charge property transfer taxes. As such, both the seller and the buyer are required to sign a declaration that discloses the property’s purchase price as well as applicable taxes.
A home purchase is a huge undertaking – legally financially and personally. Knowing the documents to look for can help you protect your rights and interests while avoiding costly missteps that might ruin your home ownership dream.