Whether you’re buying or selling property, you’re going to be doing a lot of signing at the closing. It can be overwhelming to be presented with so many papers to sign, especially if you aren’t completely clear on what all of them mean. It’s a good idea to request copies of the documents you’ll be asked to sign a few days prior to the closing so that you can carefully review them and make any necessary corrections.
This blog post outlines a few of the documents you will see at your closing so that you’ll know what to expect.
- Disclosures
The seller is required to inform the buyer of any hazardous conditions they may be aware of in the home. They must disclose hazardous mold, radon, and lead-based paint (depending upon the age of the home). In Illinois they must also complete the Illinois Residential Real Property Disclosure Report, which will outline any known defects to the home’s structure and surroundings.
- Deed
This is the document that transfers the property ownership rights from the seller to the purchaser.
- Bill of Sale
This itemizes any personal property that is being included as part of the sale (think refrigerator, microwave, etc.). Further, if the purchaser is buying any of the furniture from the house, or buying the playset from the backyard, this would also be included on the bill of sale.
- Affidavit of Title and ALTA Statement
If the title has any encumbrances or there are any other legal problems with the title, the seller must make this known to the buyer. These documents further assist with the issuance of title insurance for the premises
- ALTA Settlement Statement (a/k/a “HUD-1”)
This document, usually called a “closing statement,” takes the form of an itemized list or ledger of all money changing hands in the closing. It gives each participant to the closing a record of their incoming and outgoing funds. Moreover, the attorneys at our firm always stress to clients that keeping track of this document is important because their tax preparer shall need a copy for year’s end income tax reporting purposes.
Buying or selling property is an exciting milestone. It’s important to know what you’re getting into at the closing so that you can savor the experience as it happens, without any hovering concerns. Having a trustworthy real estate lawyer by your side makes the process much easier. If you are considering buying or selling a property, contact Auricchio Law Offices today. We offer a free initial consultation, so give us a call at (312) 263-0010.
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