Selling a house can be a complicated process that requires a substantial amount of documentation. If you think that selling your home on the market is straightforward and simple, you may be in for a surprise. Selling a house may require undertaking significant renovations / repair, and you guessed it, lots of paperwork.

If you’re considering selling a house on the market, the cost of a Realtor may be worth it's weight in gold. No matter how you choose to proceed, it's prudent to prepare yourself by knowing what documents you’ll need. This article is not an exhaustive list of all the documents you may need, however, it is a good place to start.

1. Purchase and Sale Agreement

One of the most important documents you need to sell a house on the conventional real estate market is the final purchase and sale agreement. This document is created by your real estate agent or attorney along with the buyer’s agent or attorney.

The final purchase and sale agreement is a comprehensive document that covers all of the important aspects of the transaction, including the amount of earnest money, the sale price, the terms of closing, included disclosures, tax information, and more. A real estate transaction ultimately fails unless all parties involved agree to the terms in the final purchase and sale agreement.

2. Personal Identification

As with any official transaction, you need to verify your own identity. Today’s real estate industry is fraught with wire fraud, money laundering scams, and other predatory behavior. Verification of your identity is a measure to protect yourself and others.

You’ll need a driver’s license or state-issued photo identification. Alternatively, you can use a valid passport. You may also need a utility bill or bank statement mailed to your home address.

3. Mortgage Documentation

When selling a house with a mortgage, you’re required to produce documents showing information about your mortgage. This documentation will show a payoff amount and any associated charges to be paid to the lienholder. Keep in mind that your payoff amount is not the same as your current balance. Unlike the payoff amount, your current account balance doesn’t include interest through the date of payoff. To get this paperwork, contact the bank, lender, or loan service company associated with your account.

4. Homeowners Insurance Policy

It’s courteous to provide proof of homeowners insurance when selling. Providing homeowners insurance records is a forthright way to reveal significant damage and repairs that your home has undergone. It also helps buyers estimate what their homeowners insurance costs might be.

5. Mandatory Disclosures

Every state in the U.S. has laws about disclosure, which is the process of making potential buyers aware of known issues with a property.

Though each state’s laws are different, typically, If a seller or seller’s agent is aware of a problem that could affect the health or safety of an occupant, they are required to disclose this info to the potential buyer. Some states require more documentation than others, so be sure to research laws in your area.

Most mandatory disclosures relate to defects in the home like the presence of asbestos or lead-based paint, environmental toxins, violent crimes that occurred on the property and/or legal disputes over the property. U.S. law requires that any home built prior to 1978 be sold with a lead-based paint disclosure.

6. Deed

To sell a house, you’ll need a copy of the deed that was issued when you purchased it. More often then not, many years have passed since the property was purchased, so finding the deed might prove challenging. If you’re unable to locate the deed, you'll likely be able to obtain a copy from the local county clerk/recorder.

If you're experiencing difficulty obtaining a copy of the deed, third party deed retrieval services such as Deeds.com are available for a fee.

7. Tax Documents

Come prepared with documentation showing paid property taxes. Your most recent tax bill will also likely be required to give buyers an estimate of how much they’ll pay in property taxes.

Note that you may have to pay unpaid property taxes for your home based on the days between selling and closing.

Avoid all the paperwork

You can avoid a great deal of bureaucracy and paperwork by selling your house off market. Recieve a cash offer from CoreMark Homes today. Cash sales significantly reduce the requirements and headaches that go along with real estate transactions subject to conventional financing. Depending on your situation, selling a home for cash may be more advantageous than a traditional market listing. Before choosing the best path forward, take a look at the net proceeds from any potential transaction.

For more information regarding calculating net proceeds, check out our article How to Calculate Net Proceeds from a Home Sale.