Golden Opportunities

A home sale can leave you wading in a river of confusing paperwork that generates a waterfall of questions.  What forms do you need?  Where do you get them? What are they for?  Luckily, Renee Torchia joins us today from Gateway Title Agency with advice that can help is take the final plunge into a successful home sale.

Question: Selling a home is not a minor transaction, so there's major paperwork. Renee, I know you've made a list of all the paperwork that sellers and buyers have to read and sign during a home sale transaction. The first on your list is The State of Ohio Residential Disclosure Form.

Answer: Yes, there are two forms that sellers should have filled out before they even find a buyer and reach the contract phase. The first is the State of Ohio Residential Disclosure Form. This is a four-page form which is required in all real estate contracts in Ohio. It is filled out by the seller and agreed to by the buyer before contracts are signed. (We give these forms out free. Realtors may have them, or you could look online with the state).

Question: What is the second form you need prior to the contract?

Answer: The Federal Government requires anyone selling a house built before 1978 to fill out a Lead-Based Paint Disclosure Form. The form states if the house has lead-based paint or not. The buyer must accept the disclosure. They may ask for an inspection.

Question: Then comes the contract itself-the Purchase Agreement.

Answer: Yes. This is the contract that explains who pays for what, how the money is distributed, fees broken up, etc. These are the instructions that the title company must follow during closing. Because only written instructions can/must be followed, it is important that this document is read and understood. Do not go buy a generic purchase agreement that is sold in an office supply store. These agreements do not consider the customs of our area of Ohio. A real estate attorney can write up a purchase agreement, or you can get one from the title company.

Question: After the purchase agreements are signed, we move on to Escrow Documents.

Answer: Several documents have to be signed in escrow. First is the Standard Conditions of Escrow document, which is the same for both the buyer and the seller. They agree to accept and cooperate in escrow, and the title company agrees to follow the conditions stipulated in the written purchase agreement.
In escrow, the seller will have to sign paperwork dealing with inspections, affidavits on problems, and the deed. The buyer will have a ton of paperwork to sign dealing with their lender and mortgage papers. It can be 1 ½ to 2 inches thick.
The buyer and seller meet separately with the title company to sign these documents.

Question: The paperwork that will finalize everything is called either the HUD 1 or the Settlement Statement. This is the document with all the lines and numbers for all the money transactions in the sale. The seller gets the numbers for the net proceeds. The buyer sees what he has to bring. Neither sees the other side.
This is an important document-never throw it away. Make copies. Keep one with your real estate papers and another in a handy location, especially if you're going to sell.

Question: And the last paperwork that the seller will see?

Answer: The check!

Question: There is an awful lot to remember here, and a lot of papers that one needs to have and fill out. I know there are workshops that can help?

Answer: Yes, we have free workshops where we will go through the paperwork, explain what it all means from the escrow point of view, and provide forms. You can also get forms in our free closing kit.

Don't drown in paperwork!  Call Gateway to learn more about their free workshops and closing kits.  With their free workshops and closing kits.  With their help, you'll get through the sale swimmingly.  My thanks to Renee Torchia.