One thing all Havasu homebuyers quickly realize in the purchasing process is that the paperwork tends to pile up. Inspections. Purchase agreement. Closing disclosure. Your actual deed. Each sale requires all of these things and more. We’re told that we should keep at least three years of income tax filing info. If you own a business, this could extend to seven years or more. But which documents do homeowners need to keep from their real estate purchase?
Which Documents Do Havasu Homebuyers Need to Hold on To?
Buyer’s Agent Agreement
Finding a good Lake Havasu REALTOR@ ranks high on the “must do” list when buying a home. When you do find one you like, you sign an agreement. This agreement spells out the details of your relationship: how long they’ll represent you, what their commission is and what’s involved in terminating the contract. In the unlikely event something happens between you and your agent during the home buying process or afterward, keeping this contract handy can help back your case.
Purchase Agreement and Addendum
The purchase agreement details specifics of the sale between Havasu homebuyers and sellers. This includes price and closing date among other items. Addendums as well as riders show any changes that may take place due to information gleaned from inspections or contingencies. Both parties are bound by the terms in this legal contract. If someone doesn’t hold up their side of the deal, the other party could seek legal recourse.
Seller’s Property Disclosure Statement (SPDS)
At some point, you probably received a SDPDS form. On this form, sellers disclose what they know about the condition of the house in question. This includes what they experienced while they owned the home as well as what they were told by the previous owner. If something serious happens that wasn’t included in the Seller’s Disclosure, you might take the previous owners to court. You’ll need the disclosure form to help your case.
Home inspectors identify current issues as well as possible future problems they see on their inspection. This may include photos. This report helps you keep track of these potential issues while you own the property. Same goes for any specialized inspection you may utilize (roofing, plumbing, pest, etc.).
Title Insurance Policy
Title insurance covers you in case someone else tries to claim that your property is actually theirs. Since the insurance company runs a title search as part of the insurance process, it will show the line of legal owners through the years. Your mortgage company may require that you get title insurance. However, this covers their interests, not yours. Therefore, you might want to seek a title insurance policy of your own just in case.
Havasu homebuyers receive a closing disclosure form no later than three days before closing. This disclosure explains your purchase price, terms of the loan, interest rate, type of loan, and closing costs among other things. When you file your taxes at the end of the year, you’ll need to give this form to your tax preparer so that they can determine how much you can take in deductions for things like interest and points paid. If you lose this document, your mortgage company should have it on file. However, it’s much easier for you if you keep it handy yourself.
Finally, when you become the official owner of record, you will receive a deed stating such. This gets mailed to you after the title is transferred. This document shows that you own the property. Neither your lender nor the title company are required to keep a copy. So, make sure you keep it in a safe place for as long as you own the home.