When you purchase a home, you need to sign an enormous pile of mortgage and closing documents, where each document can total hundreds of pages or more. The huge dilemma: they will likely take up a huge part of your storage space, so you may not want to file all of it. However, you also don't want to throw out or destroy something crucial.
Still, it's important to keep these documents on hand after closing on your home for future reference. You may need them later on in the event that you need to file a claim, either against the seller or any professional from your home buying team (hopefully, that won’t happen). Your closing company will also keep a record of your closing documents, but it’s wiser to keep them handy while you’re residing in the home and when you’re preparing to sell it.
Here’s a list of real estate documents you should keep filed in a safe and accessible place:
The real estate purchase agreement is a legally binding contract signed by both the buyer and seller. It sets forth all the terms and conditions for the home purchase, including the purchase price, closing date, essential rights and conditions, and other terms agreed upon by both parties.
The provisions stated in this bilateral agreement must be followed and there could be legal ramifications if the buyer or seller fails to fulfill the duties indicated in the document.
These are documents that alter or amend the terms of your signed purchase contract, and they're worth keeping since they are often related to home inspections or appraisals. These documents could clarify any issues you may encounter down the road or correct any clerical mistakes related to the seller’s or buyer’s name.
This is the contract you signed when you hire a real estate agent to represent you in your home purchase. This agreement is between you and the brokerage and outlines the terms of the relationship with your agent. It details what services your agent agreed to provide you with, as well as the terms of terminating the agreement. The contract also spells out who pays for the commission which, in most cases, is handled by the seller. Make sure to keep this document just in case you encounter an issue with your real estate agent even after the transaction closes.
Sellers are required by law to disclose certain issues with the home to their potential buyers. It is known as the “caveat emptor,” a general rule in buying and selling real estate which means “let the buyer beware.” Disclosure regulations vary by state and issues may include asbestos, lead-based paint, pest manifestations, mold, and repairs done without a permit.
The seller's failure to disclose these issues in accordance with government or state laws can be a basis for future lawsuits against them. Make sure that you won’t lose them so that in case a major problem comes up with your home after you move in, you won’t have trouble holding the seller accountable.
This detailed document, produced by your home inspector shows the condition of the home and its potential problems. It's an itemized list of the inspector’s findings, highlighting which parts of the home are still in good condition and which are in need of repair or replacement. It should also include photos of the property’s problem areas. Storing this report will help you in planning the repairs you need to make in the future. If you have a digital file of the report, copy it in cloud-based storage so you’ll have a backup.
