What documents do sellers sign?

In all closing documents, you are a) agreeing to something; b) swearing that something is true, or c) acknowledging receipt of the document and/or that you understand the document.

Sellers’ closing documents consist of:
1. Closing Disclosure and Settlement Statement – These summarize the transaction – they show who’s paying what and who’s receiving what.  These documents combined, are the key to the transaction, and are therefore usually reviewed first.  They show all the fees, payments, prices, concessions, deposits, taxes, rents, HOA dues, etc….and they show who is paying and who is receiving each of them.  Lastly, these 2 documents show your bottom line…the total amount you will be paying/receiving at the closing.
2. Deed – the document that transfers ownership of the property.  This is also referred to as the title.
3. The title company’s documents. Some are required by law, some are required by the title company.
Most common examples:
a) Privacy policy – says the title co. does;t share/sell any of your non-public financial information they may receive.
b) Document correction agreement AND its’ limited power of attorney– says you’ll help fix any typo errors in the docs. Cannot change any items material to the transaction – like rate, payment, loan about, etc. The POA states the title co. may make changes if non-material to the transaction.  Any changed doc must be mailed to all parties. Note – If you get a conventional loan to buy a property, you will always sign these in the U.S., regardless of the lender.
c) Seller’s affidavit – swears to: your marital status as listed on the deed, the completion of the property, no outstanding liens/lawsuits to your knowledge, etc.
d) List of services provided – defines what work/services the title co. performs/provides.
e) Proration agreement – shares the tax/HOA amounts that the prorations that are on the settlement statement are based upon, and that all parties agree these prorations are acceptable and final.
f) 1099 form – if certain IRS conditions are met in your sale, then we have to give you a 1099 for you to give to your tax preparer. This is for capital gains purposes – this does NOT necessarily mean you will pay capital gains taxes, it just means we are required by law to give you a 1099. Your tax preparer should tell you if you’ll have to pay capital gains taxes on it or not.  We are required by law to tell youth seek the advice of a competent CPA. We are prohibited form giving tax advice.
 4. Occasionally lenders will have a document(s) of their own that the sellers must sign as well – the most common one is where you swear that you have not lent the buyers any money in this transaction.