When it comes to selling your house, you have two options. Either hire an agent to assist you in selling your house, or you can do all the work by yourself. While doing it all by yourself will definitely save you thousands in commissions, you have to ensure you fill in all the required paperwork correctly. In addition, you need to follow the rules and regulations as instructed and required by national and local laws. Here we’ll discuss which paperwork is required to sell a house by owner and suggest some tips to make the process simpler.
As an owner the first important thing to know is that the process to sell a house is the same. Both when being sold by the owner and if you were to engage an estate agent. The main differences are that primarily you will save some commission and secondly there is more work to do by the owner. Let’s dive in and see what is required.
The actions are initiated only after an offer from a seller is accepted by the owner. First and foremost an escrow account is opened with the bank of choice of the buyers. This is to confirm the commitment for the purchase of the house by the buyers. If the buyers will be taking a loan, they will initiate the required process and paperwork with their preferred bank.
On the other hand, the seller will have to provide all the required disclosure agreements. Agreements will have to comply with regulations specified by the US government. The seller will also have to report any known or probable hazards in the area.
Now let’s have a look at the seller’s process and the required forms to be filled.
Purchase Agreement – Lists the parties involved, the offer, counter offer if any and timelines and inspection periods. Details of the terms of the contract of sale. Includes the evidence of the transfer made during the contract of sale and is legally binding.
Power of Attorney – This form is only required if someone else other than the owners will be signing the deed of sale.
Promissory Notes – In the case of debt the promissory note will include the terms of payment of a debt in the case a later dispute occurs.
Deeds – A form which is used in the selling of a house by owner being a home sales contract form.
Warranty deeds, quitclaim deeds, deeds of trust – List of deeds are required for the legal purchase in local land records.
Lead Paint Disclosure – If the house you are selling was built prior 1978, you need to provide the buyer with a disclosure warning about possible presence of paint containing lead in your house. Further information about the latter can be found in the EPA website. Lead Paint disclosure forms can also be downloaded from the US Legal Forms websites for a nominal fee.
Depending on the state there might be different regulations that apply. Websites such as USLegalForms.com offer state specific forms for download forms at an affordable price.
This is not an exhaustive list. If in doubt, you should consult a real estate attorney licensed in your state.