What documents are needed to finalize a real estate transaction?

To finalize a real estate transaction, several documents are necessary. These include:

1. Sales Contract: This is the primary document that outlines the terms of the sale, including the purchase price, closing date, and any contingencies or conditions that must be met for the transaction to proceed.
2. Deed: This is the legal document that transfers ownership of the property from the seller to the buyer. It must be signed and notarized by both parties and filed with the appropriate county office.
3. Title Report: This is a document that verifies the legal ownership of the property, as well as any liens, judgments, or encumbrances that may affect the property's title. The title report must be obtained prior to closing to ensure that the title is clear and the property can be legally transferred.
4. Mortgage Documents: If the buyer is obtaining financing for the purchase, then several additional documents will be necessary, including a loan application, promissory note, and mortgage deed of trust. These documents will outline the terms of the loan, including the interest rate, payment schedule, and any penalties for default.
5. Closing Disclosure: This document provides a detailed breakdown of all fees and costs associated with the transaction, including closing costs, taxes, and prepaid expenses. It must be provided to the buyer at least three days before closing to allow time to review and ask questions.

Exceptions to the above documents may exist based on local and state laws, such as a specific city ordinance, zoning laws or specific district regulations. It is generally a good idea to consult with a licensed attorney or a real estate agent throughout the real estate transaction process to ensure that all necessary documents are obtained and proper procedures are followed.