When you buy or sell property in Pennsylvania, you will need various documents to consummate your real estate transaction. Knowing what documents you need to buy or sell property can help you prepare for your Pennsylvania real estate transaction.
Key Documents for Buyers and Sellers
When buyers and sellers first enter a real estate agreement for the purchase and sale of a property, they will need to organize or execute various documents, including:
- Agreement of Sale – The agreement of sale governs the terms of the property purchase, including the sale price, payment terms, conditions for closing, such as the buyer securing financing or the completion of a home inspection, and other contingencies, such as the seller’s repair obligations.
- Seller’s Disclosure Statement – The seller must provide the buyer with a property disclosure statement in which the seller discloses all known material defects with the property, such as foundation issues, structural problems, wiring/plumbing defects, or insect/vermin infestations.
- Mortgage Documents – Before closing, the buyer may have to supply the seller with proof that the buyer has secured mortgage financing.
- Title Report/Title Insurance – In many cases (primarily when a buyer obtains mortgage financing), the buyer may obtain a title report that verifies the seller’s title to the property and identifies any liens or claims on the property or other clouds on the title. A buyer may obtain a title report with title insurance, which provides the buyer and their mortgage lender with financial protection against losses caused by undiscovered title defects.
- Property Deed – The parties must prepare a deed that transfers ownership from the seller to the buyer. The buyer will record the deed after closing to create a public record of their property ownership.
Closing Documents
Closing represents the consummation of a real estate transaction, where the buyer assumes property ownership. Closing occurs once the parties have satisfied all the conditions precedent in the sale agreement. At closing, the parties may exchange and execute documents, such as:
- Settlement Statement – Also called a HUD-1 or closing disclosure, the settlement statement provides an itemized list of closing costs (e.g., realtor, attorney, and recording fees), which party will pay for each cost, and the other funds transferred between the parties, such as a down payment or the purchase price for the property.
- Bill of Sale – When a transaction involves the transfer of personal property (such as appliances or fixtures), a bill of sale can document the transfer of ownership from the seller to the buyer.
- Real Estate Transfer Tax Statements – This statement documents the payment of state or local transfer taxes, allowing the buyer to record the deed with the local registrar.
- Affidavits or Certifications – The parties may exchange other documents, such as certificates of occupancy, rental licenses, or tax documents.
Contact a Real Estate Attorney Today
Before agreeing to a real estate transaction in Pennsylvania, talk to an experienced real estate attorney to help protect your rights and interests. Contact Gusty Sunseri & Associates, P.C., today for a free consultation with our legal team to learn more about what to expect in preparing and executing a Pennsylvania real estate deal.