One of the biggest problems in business these days is the lack of factual knowledge regarding a common question: What documents do I need to sell my house?
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. This is true especially when it comes to documents needed for real estate closing.
The law requires that real estate agents disclose all damage or existing issues with potential buyers about any property they sell. However, one of the most confusing aspects involves discussing exactly which documents Texas requires.
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.
Documents Needed To Sell a House
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 in today. Every property in each county it exists has a copy of the property deed on file. The county often uses the deed and information in each file for calculating taxes each year. The law requires the county 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
The title company pulls a digital and certified copy of the home deed for closing. However, the same can’t be said about payoff letters or property liens that have been filed. The mortgage company, not the title company, usually handles this.
Quite often mortgage companies forget to complete this step. As a result, the title company needs to hunt this information down. This can significantly impact your ability to sell a property. Even if the property remains sell-able, the closing date may be delayed until these records are tracked down. Deeds and payoff letters are all filed electronically these days. But it remains critical that you maintain good documentation of any liens or payoff letters. Doing this expedites a quick sale.
Myth #3 – You have to Pay Property Taxes before Selling your Home – FALSE
When you are selling a property, many sellers assume you need to pay the property taxes for the year prior to closing. 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 recommended that you don’t pay taxes on the property. Many counties process taxes slowly. Paying the taxes in full in advance causes delays while the title company verifies the correct amount owed.
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.