12 Documents You Need to Prepare When Selling a Property

Selling any type of property is a tedious job that involves a lot of paperwork. And thus, you have to have it pinned down for a worry-free and legal sale from forms, contracts, and reports, down to multiple statements.

If you’re selling a property for the first time, we’ve listed below the 12 mandatory documents involved in selling a property to help you better prepare for the divestment. These documents are divided into four categories for better organization.

 

A. Before Listing the Property

The documents you have to prepare before listing your property include the following:

 

1. Original Sales Contract

This is the contract you obtained when you purchased the property from the previous owner and outlines the terms of the purchase of the property, including the transaction procedure and purchase price. This contract also elaborates on any disclosures about the property made before the sale.

 

2. Home Repair and Maintenance Records

Many property buyers request records of capital improvements to justify its added value. Particularly for homes, we recommend that you present pictorial evidence of the repairs or enhancements you’ve had for the property. Be transparent with your potential buyer and let them know of any damages and constructions the property has been through during your stay as well.

 

3. Comparative Market Analysis Report (CMA)

A real estate agent structures a CMA to help calculate the worth of the property according to local property market trends. The estimated value is based on similar properties recently sold in the immediate area. This report will also help buyers make competitive offers.

 

4. Listing Contract

This contract between you and your real estate agent outlines that your agent is entitled to sell the property within the time you allotted. This contract includes photos and videos with descriptions to help the real estate firm or agent attract buyers for the property.

 

B. On the Market

These are the documents you need to keep handy as soon as your home gets listed for sale, whether it’s on social media, on any other website, etc.:

 

5. Preliminary Home Title Report

This document includes all details regarding the finances and legal issues related to the property, including possible outstanding dues like taxes or insurance requirements. This report needs to be purchased from a title company.

 

6. Mandatory Disclosures

Once you have secured a buyer, it’s a requirement to disclose mandatory issues affecting the property’s value, so you have to be thorough and transparent with the buyer. Doing otherwise can lead to a lawsuit against your name. Even if the law doesn’t require disclosing a problem, it’s wiser for sellers to tell it anyway.

 

C. Upon Receiving an Offer

Here are the documents you need to prepare for offers:

 

7. Purchase Offer and Counter Offer

At this time, you have to present your buyer a purchase offer, which will serve as the basis of the purchase agreement that you will outline in the future. This includes the list of prices you offered the buyer, along with a description of the property. This form is not an end-of-contract document, and its terms are subject to revisions or amendments.

 

8. Contingency Removal Form

A contingency protects the buyer, allowing them to back out without consequence. This form is designed to cover the removal of both buyer and seller contingencies. To finalize the contract, the buyer or seller must meet the requirement of any contingency clauses.

 

D. Closing the Offer

Finally, these are the documents you need to have to close the offer:

 

9. Appraisal Form

This document is structured if the buyer purchases the property through an external financial. The person lending the money will need the help of a property appraisal to assess the property’s market value. Chances are, negotiations will occur between your real estate agency and the buyer’s financing agent at this stage of the deal.

 

10. Home Inspection Report

The buyer is likely to tap a professional to inspect the property to ensure it is free of structural defects or other damages. A complete inspection includes a visual examination of the property from room to room. An inspector may check the roof structure, drainage foundation, plumbing, heating, air-conditioning systems, insulation, and the property’s walls, windows, and doors. The report’s findings are usually indicated in this document and delivered to the buyer.

 

11. Final Purchase Agreement

Once the home inspection report returns clear, a final purchase agreement will be drawn between the buyer and the seller. This contract is inclusive of the property’s agreed final purchase price along with the date of closing and any other financial contingencies.

 

12. Sale Deed

The final step of every divestment process is the deed. The sale deed is the final document drafted that serves as legal proof of transferring the ownership of the property from the buyer to the seller.

 

Before Anything Else, Here’s a No-Obligation Cash Offer!

Meanwhile, if you’re ready to list your home for sale, you can get a no-obligation cash offer from Shorefront Investment first and see if their offer works for you. This can save you tons of time as they welcome properties even without repairs. Also, they often close deals in just 7-14 days or less and provide a real cash offer within 24 hours. Since they’re experienced homebuyers and are not real estate agents, you can save money from paying commissions.

You can fill out the form on our website or call (850) 713-4866 any time to schedule a viewing and receive a cash offer.

The Bottom Line

Collating real estate documentation for signatures can be an intimidating and overwhelming job for both property sellers and buyers, but understanding your obligation as the seller and knowing state regulations for property sales can prepare you to dole out the necessary documentation required.

It’s important to remember that local laws vary. In particular, California has the most complex real estate laws in the country, so always check with the appropriate planning department and your agent if you need to present additional documents.