All the time, in doing real estate deals, we encounter situations in which sellers spend more time and money than necessary to complete their sale. Much of the time, these are costs associated with finding and gathering the paperwork needed to do the deal; it can cost significant amounts of money and time to generate new documents or find existing ones. Of course, these expenditures have tangible and intangible effects, and it’s always better to minimize them however possible.
There are four key documents that are needed for any real estate sale. Accordingly, sellers should be sure to begin the process with as much of this in place as possible.
1. A Deed
These are signed, legal documents that transfer ownership of property. It always includes a description of the property, the name of the owner and more. Sellers should have a copy of the deed and a clear understanding of all information on it before they proceed with a closing. Check out this blog post by Compass Land USA for more information on the different types of property deeds: 5 Types of Property Deeds in Land Purchase
2. A Signed Purchase Agreement
Buyers sign and remit these documents when making an offer on a property. Upon submission, these are legal and binding, and then the seller verifies the price and terms. For tips on how to draft a purchase agreement you can follow this link to an excellent DocuSign article: How to Draft a Purchase Agreement.
3. A Death Certificate (If Applicable)
In situations when the owner of the property is deceased, a death certificate will be required to prove that person cannot attend the closing and sign related documents for him/herself. Follow this link for more information on buying property from a deceased individual: How to Buy Real Estate From a Deceased Person
4. Documents That Give Title to a Property
Title papers and old closing documents are examples of documents that tell the ownership story of a property over time. In situations of clear title, it’s obvious that an owner possesses the land and has the ability to do with it what they wish. Yet, sometimes, situations arise in which ownership rights are disputed for some reason. Keeping these documents, and producing them at closing, will help buyers and other professionals establish ownership and work through any issues that may exist. If you want to learn more about these documents follow this link for a great article explaining Chain of Title.
Here is a list of some other documents that are helpful to have available as well, but aren’t necessarily required to complete a sale and some helpful links that provide more information on them:
- A recent survey or appraisal: What is a Property Survey and Why is it Important?
- A list of any/all assets being sold with the land
- Paperwork describing any easements or encumbrances relating to the land: Property Easements Overview
- Documents showing proof of income an owner realizes from the property, such as leases, grants, etc.: 10 Ways Tenants Can Show Proof of Income and Why It’s Important
- Insurance policies on the land, especially if a buyer might assume them after closing: Own Land? Here’s Why You Need Vacant Land Insurance
Simply put, the more everyone knows going into a closing, the more confident everyone can be in the transaction and the fewer issues that arise through and after the process. Buyers of property also appreciate knowing what future expenses they may incur as an owner, and these documents help make them clear.
At Solterra Property, our goal is to make the sales process as easy and simple for those we work with as possible. We want to save you as much time and money as we can, and we want to be a true partner throughout the process. Please don’t hesitate to contact us with any questions you have or ways we can help you navigate your land sale.
Solterra Property helps real estate sellers unload their property easily, efficiently and safely. Contact the Solterra Property Team at 612-662-4542 or [email protected].