Here is a checklist of the typical documents buyers and sellers are asked to sign at a real estate closing.
| |  | TRUTH IN LENDING STATEMENT: Also known as regulation Z document. Contains the full disclosure of the interest rate, annual percentage rate, amount financed and the total cost of the loan over its life. Signed by the buyer. |
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| | | ITEMIZATION OF AMOUNT FINANCED: Summarizes and explains the prepaid finance costs - which are subtracted from the total loan amount - mentioned on the Truth-in-lending statement. Signed by the buyer. |
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| | | CONSOLIDATED BUYER AND SELLER SETTLEMENT STATEMENT (HUD STATEMENT): Itemizes the details of the financial transaction between the buyer and the seller. Contains all real estate costs, plus costs to the borrower. Signed by the buyer and seller. |
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| | | MONTHLY PAYMENT LETTEr: Shows the total monthly payment, itemizing the portions for principal, interest, taxes, insurances and other monthly escrows. Signed by the buyer. |
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| | | NOTE: The actual agreement between the borrower and lender, explicitly stating the terms of borrowing. In effect, this is the IOU. Signed by the buyer. |
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| | | MORTGAGE: An official document showing that a lien is being placed against the property. It allows the lender to foreclose the property in case the borrower defaults. Signed by the buyer. |
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| | | WARRANTY DEED: The document that transfers the title of the property from the seller to buyer. |
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| | | TAX PRORATION AGREEMENT: Buyer and seller agree to cooperate in re-prorating the property taxes in the following year once the actual bill is known. In theory, taxes should be re-prorated with every deal. In practice, this agreement is invoked only when there is a major change in the property tax bill. Signed by buyer and seller. |
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| | | HOMEOWNER’S DUES PRORATION AGREEMENT: Same as the tax proration agreement, except that it addresses homeowner’s dues. Signed by buyer and seller. |
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| | | NAME AFFIDAVIT: Certifies that the parties at the closing are known by the names they are using in the transaction. If one of the parties has a former name or did business under another name, the affidavit makes that fact known. Signed by buyer and seller. |
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| | | ACKNOWLEDGEMENT OF SURVEY AND TERMITE REPORTS: Assures that buyer has seen the survey and termite report. Signed by the buyer. |
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| | | NOTICE TO OWNER: Required by Florida Department of Insurance. Lets buyer know that the lender’s title insurance policy protects only the lender. Also lets buyer know that an owner’s title insurance policy can be purchased. Signed by the buyer. |
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| | | ANTI-COERCION FORM: Required by the Florida Department of Insurance. Lenders customarily require homeowners to buy insurance on the house and its contents. This document requires the borrower to state that the lender has not forced them to use any particular insurance company. Signed by the buyer. |
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| | | BORROWER’S AFFIDAVIT: Requires borrowers to state that they have not altered the property in any way that might cloud the title. Signed by the buyer. |
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| | | SELLER’S AFFIDAVIT: Requires sellers to state that they have not altered the property in any way that might cloud the title. Signed by the seller. |
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| | | 1099 FORM: An Internal Revenue Service form that reports the gross proceeds from the transaction. Signed by the seller. |
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| | | CONFIRMATION OF PAYOFFS: A report of where money is being paid to redeem liens placed against the property. Signed by the seller. |
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| | | NONFOREIGN OWNERS NOTICe: Notifies the buyer that if the seller is a foreigner and leaves the country without paying income taxes on the transaction, the buyer is liable for the taxes. Also known as the FIRPTA document. Signed by the buyer. |
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| | | COMPLIANCE AGREEMENT: Requires buyer and seller to state that if there are unintentional typographical errors on any of the documents, they both will cooperate to correct changes in the documentation. Signed by the buyer and seller. |
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