One of the biggest problems in business these days is the lack of factual knowledge fed to the public in many areas. And across the board, one of the biggest offenders in providing less than 100% transparency over the years has been the home buying and selling industry; especially when it comes to documents needed for real estate closing. Even though it is required by law that real estate agents disclose all damage or existing issues with potential buyers about any property they sell, one of the biggest hidden or misleading statements made are discussing exactly which documents are needed for real estate closing in the State of Texas.
In order to separate fact from fiction; let’s answer a few common myths about the closing process and exactly what documents you need to keep – and which ones can be found for you in today’s electronic and digital age.
Myth #1 – You need to have a HARD copy of your Deed to sell a house – FALSE
This simply isn’t true thanks to the electronic world we live today. Every property in each county it exists has a copy of the property deed on file with the county office for several reasons. First, the county will often use this deed and information in each file to calculate taxes each year. Second, they are required by law to keep digital copies on file for every property in the county. However, it’s not required that a home owner brings their deed to any closing.
When a property is going to be closed, the title company contacts the county and receives a certified copy of the deed as part of the closing procedures. Although it is never a bad idea to keep these documents in a secure location; it simple is not needed in order to sell any property in the county you live.
Myth #2 – You don’t need to keep copies of Liens or Payoff Letters – FALSE
Although the title company will pull a digital and certified copy of the home deed to close; the same can’t be said about payoff letters or property liens that have been filed. The reason for this is that it’s handled by the mortgage company and not the title company. Quite often mortgage companies forget to complete this step; as a result, the title company needs to hunt this information down and it can significantly impact your ability to sell a property – or at least extend the closing date until these records are tracked down. Although deeds and payoff letters are all filed electronically these days; it is very critical that you maintain good documentation of any liens or payoff letters in order to expedite a quick sell.
Myth #3 – You have to Pay Property Taxes before Selling your Home – FALSE
When you are selling a property, it is assumed that you need to pay the property taxes for the year in question prior to coming to closing; and that you bring documentation from the State of Texas verifying this. Sadly, this statement is false in every sense of the word. The truth is that the title company will pay the taxes at closing from the proceeds of the property sale. In fact, it’s best and recommended that you don’t pay taxes on the property – as many counties process taxes slowly, and the title company will be delayed in paying the escrow if they need to verify this amount.
In today’s digital and electronic age, the truth is that there are fewer and fewer documents needed for real estate closing than ever before. If you have more questions about real estate documents needed for selling your home, Big State Home Buyers at 713-574-0570 can help you get more information.