At a residential home closing, both Buyer and Seller can expect to sign a number of documents. Depending on whether the Buyer has obtained financing or not (through a bank or other conventional lender), the Buyer’s stack of documents may be much larger than the Seller’s stack.
The Buyer will be required to sign some documents related to their loan (Lender Documents), and some documents related to the actual property (Title Documents). Here are some of the documents the Buyer may sign or initial at closing:
- Lender Documents
- Promissory Note
- Deed of Trust (sometimes referred to as the mortgage)
- Copy of previous tax returns
- Copy of original loan application
- Various lender disclosure documents
- Acknowledgment that Buyer received the appraisal
- Names affidavit
- IRS Form to obtain future tax returns
- An agreement to fix errors in the closing packet
- HUD-1 Closing/Settlement Statement
- Various Title Company disclosures
- Copy of marked-up title insurance commitment, upon which the title insurance policy will be based
- Notice of real estate tax assessment changes
- Some Title Companies ask the Buyer to sign a document indemnifying them from damages for Title Company negligence.
- In certain municipalities (for example St. Louis City), Buyer must also sign the deed conveying the property.
The Seller generally only needs to sign Title Documents, such as:
- Deed of conveyance
- Various title disclosures
- HUD-1 settlement/disbursement statement
The Consumer Protection Financial Bureau published a short pamphlet explaining some of the closing documents. It can be accessed here.