Register Real Estate Advisors

Part of our video blog bi-weekly update, this video explains the parties to a closing. Anytime you have a question about your real estate transaction, you should ask our team to explain. We are always happy to help our clients understand every part of their real estate transaction. We have been trained to assist you with all of your real estate needs.

You will walk away from the closing table with a packet full of documents and some of them are very important to keep. Hopefully the following guidelines will help you know what to put in the safety deposit box and what you can toss.

• The HUD-1 Statement, usually printed on legal size paper, is the Real Estate Settlement Procedures Act (RESPA) Statement. This statement itemizes all the costs associated with the closing. You’ll need this for income tax purposes and when you sell the home.
• The Truth in Lending Statement summarizes the terms of your mortgage loan.
• The mortgage and the note (two pieces of paper) spell out the legal terms of your mortgage obligation and the agreed-upon repayment terms.
• The deed transfers ownership of the property to you.
• Affidavits swearing to various statements by either party. For example, the sellers will often sign an affidavit stating that they have not incurred any liens on the property.
• Riders are amendments to the sales contract that affect your rights. For example, if you buy a condominium, you may have a rider outline the condo association’s rules and restrictions.
• Insurance policies provide a record and proof of your coverage.

Reprinted from REALTOR Magazine Online by permission of the National Association of Realtors, Copyriht 2005, All rights reserved.