8 Real Estate Documents You Have To Keep

After buying a home, the buyer has to maintain some documents. And, this is the agent’s job to make sure that the buyer is aware of these requirements. Most agents maintain records of the deals they have handled. Similarly, there are some places where laws make it mandatory for closing companies to keep records of their closing documents. These documents can be of great help for real estate agents, mortgage lenders or home inspectors in case there is a dispute.

During the home-buying process, the buyer and seller are going to deal with hundreds of documents. The only way to stay organized with documents is by using real estate software. Following are the common documents involved in the home-buying process:

Buyer’s Agent Agreement

A buyer signs a buyer's agent agreement while choosing a real estate agent. This agreement between the buyer and brokerage states that the buyer is giving his agent the right to represent him in the purchase. The agreement mentions the agent’s commissions, the length of the agreement and terms for termination.
Purchase Agreement
The sale of a property starts with this agreement. A real estate purchase agreement is a legal binding contract signed by the sellers and buyers to confirm that both agree on the price, closing date and other terms.
Seller Disclosure
Laws require the sellers to disclose if there are any problems with the house. Both past and present problems should be included. These problems can affect the value of the property. Laws vary by state. If a major problem appears after the purchase and that problem is not disclosed in the seller disclosure, the buyer can hold the seller accountable in the court.
Addenda, Amendments, Or Riders
These documents amend or alter the terms of the purchase contract. Let’s see an example. The survey reveals that neighbors have built an encroaching fence and the buyer wants to get it removed. This requires amendment in the sales contract. Addenda, amendments, and riders are related to appraisals or home inspections.
Home Inspection Report
A home inspection can uncover issues in the property which should be documented. So, the home inspector prepares a report. This report contains detailed notes on the potential problems and conditions of the home. A home inspection report also records repairs the buyer has to make in the future. 
Closing Disclosure
A mortgage lender provides the borrower with a closing document. The closing disclosure contains loan terms, interest rate, loan type, closing costs and other terms related to finances. The buyer needs this document to file tax deductions as well.
Title Insurance Policy
This document provides protection against competing claims to the property. In this process, the insurer runs a title search to learn about fraudulent signatures, liens against the property and other loose ends. In case the previous owner claims the property, this document can help.
Property Deed
The buyer becomes the sole owner of the property after taking the title. The buyer receives a legal document, a deed confirming that he has the ownership rights of the property. This is a physical document signed by the seller and buyer.
All these documents can be used in case there is a dispute. As an agent is involved in the preparation of these documents, he should also maintain digital copies of all the documents. So, use real estate software that allows you to create, share and access these documents.
8 Real Estate Documents You Have To Keep 8 Real Estate Documents You Have To Keep Reviewed by Pravesh Kumar Maurya on February 05, 2020 Rating: 5

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