One of the most overwhelming aspects of closing on a home is the sheer volume of documents that need to be prepared, then filed and stored after – just in case. Especially for first-time home buyers, determining which files are crucial and should be kept can be confusing . While you shouldn’t store every single one, you don’t want to make the mistake of throwing away an important document that you might need down the road.
It’s important to note that closing companies are legally required to keep documents of their client’s transactions. However, if you unfortunately run into problems with the property or with the seller, having the necessary documents on hand can help you review past agreements and look into your options promptly.
Here’s a list of some of the most important home closing real estate documents you need to keep:
- Buyer’s Agent Agreement
- Purchase Agreement
- Title Insurance Policy
- Property Deed
The Buyer’s Agent Agreement is a contract that you sign with your Realtor or the brokerage that will represent you in the real estate transaction. This document outlines the terms of the relationship between you and the agent. It includes details such as who pays for the agent’s commission, the terms for terminating the agreement, and the services the agent agrees to provide. It is a good idea to keep this document in case issues between you and your agent arise after you close on the property.
The purchase agreement usually comes into play after a seller accepts your offer. This document states that both parties agree to the terms of the sale, including the purchase price, the closing date, and other conditions that need to be fulfilled before and after closing.
The purchase agreement is an important document to store because details within the contract need to be followed to a tee. If you or the seller fails to meet the conditions stated in the purchase agreement, you might need legal intervention.
The Title Insurance Policy safeguards you from competing claims for the property or any other title problems, such as property liens and legal ownership issues. This document is furnished by an insurer after a thorough examination of public records. The policy protects you financially as the buyer if a court case arises from a title issue.
The Property Deed is the most important document to keep until you sell the property. It is a legal document that proves your ownership rights to the home. The deed is signed by the seller to indicate they are transferring the title of the property to you, so you should also be named on the document as the new property owner. The deed is registered in the county where the property is located and is usually mailed to the buyer following the closing process.
How to keep important real estate documents
As you need to keep these documents safe for a long time, it is a good idea to store them in a fire-safe, water-resistant box. Moreover, having several copies ensures that you have a back-up just in case you lose the original documents.
Buying a home in New Jersey? Work with an experienced real estate team who will guide you through every step of the process, including managing the mountains of documents that comes with it. Call the team today at 908.436.7947 or sending an email to info(at)pagnottahomes(dotted)com.