Chapter 13 of 16
Closing documents
What you need to produce, and what to verify before you sign anything.
1 min read
What you will need to produce varies by state and by whether the home is personal or real property, but the core set is consistent: the title for each section, properly signed over; written discharges for every lien; a bill of sale; identification matching the title exactly; and any community transfer paperwork.
For a home converted to real property, closing resembles a house sale, a settlement agent, title work, and recording, and the documents follow that pattern instead. Establish which process applies to you well before closing day.
Verify before signing: that the serial numbers on the documents match the numbers on the home itself; that the figures match what was agreed; that the buyer's funds or loan proceeds are actually in place rather than expected; and that any repairs you agreed to make are documented as complete.
Do not hand over keys or possession before the transfer is complete and funds have cleared. This sounds obvious and it happens anyway, usually out of goodwill under time pressure, and unwinding it is very difficult.
Keep copies of everything, including the signed-over title, the bill of sale, and the closing statement. You will want them for your tax records and in the event of any later dispute.
Key points
- Titles for every section, lien discharges, bill of sale, matching identification.
- Real-property homes close like houses, different process entirely.
- Verify serial numbers on documents against the home itself.
- Never hand over possession before transfer is complete and funds have cleared.
Watch out
Do not release possession early as a favour. If the sale then fails, recovering the home from an occupant is slow, expensive, and sometimes requires eviction proceedings.