When you buy a property, you will invariably sign a huge pile of closing and mortgage documents. Each document can have hundreds of pages or even more. Thus, they can occupy a lot of storage space, so you need to select important ones to file. At the same time, you should take care not to destroy or throw out any crucial files.

 

It’s vital to keep these files after closing on the home. You could need them in the future if you are required to file a claim against either any member of your house buying team or the seller. Your closing firm will also preserve your closing files, but it’s smart to keep them at hand while you’re living in the house, and when you prepare yourself to sell the property. In this article, we list the documents you should store in an accessible and safe location:

 

Purchase Agreement

 

The property buying agreement is a legal contract signed by the seller and buyer. It defines the conditions and terms for the house purchase, including the price, important terms and rights, closing rights and other

conditions agreed to by both entities.

 

You must follow the provisions defined in the purchase agreement. The seller or buyer could face legal consequences if they do not adhere to the terms stated in this document.

 

Riders, Amendments or Addenda

 

You also need to secure the above documents that amend or alter your purchase contract’s terms. They are related to home appraisals or inspections. You can utilize them to clarify any problems you may face in the future or rectify any clerical errors associated with the buyer’s or seller’s name.

 

Buyer’s Agent Contract

 

You sign this agreement when you recruit the services of a property agent to help you with the purchase. This contract between the brokerage firm and yourself outlines the agent’s relationship terms with you. It provides details on the services the agent has agreed to offer you, and the contract termination terms. The agreement informs who covers the commission costs, which is usually the selling party. Keep this contract in case you face a concern with the property agent after the transaction is closed.

 

Home Inspection Report

 

The home inspector creates this report that shows your property’s condition and any potential issues. The report lists the inspector’s conclusions and highlights the home areas maintained in ideal condition and those that need replacement or repair. It also includes pictures of any problem areas. You need to keep this report so you can plan the needed repairs later. If there is a digital copy of this report, keep it in secure in cloud storage so that you have a backup.

 

Seller Disclosures

 

The law requires sellers to inform potential buyers about certain issues related to their home. This regulation is referred to as “caveat emptor” and it means buyer beware. Each state has its own disclosure rules which may include mold, pest infestations, lead-based paint, asbestos, and repairs executed without a proper permit.

 

If a seller fails to inform about these issues as per state laws or government laws, they may face lawsuits. Secure these documents safely in case you face a major issue with your house, so you can make the selling party accountable.

 

Closing Disclosure

 

This document is given by the mortgage provider to a loan borrower a few days before the settlement takes place. It provides information such as the loan period, loan type, interest rates and the estimated expenses related to your mortgage and closing. You can use this vital document to obtain deductions when filing your income taxes.

 

Property Deed

 

This legal document confirms that you are the owner of your home. It affirms that you hold the property title of the house that you’re living in. This document is delivered to you after the public records department in your county records the title transfer files. Ensure to keep the physical file secure because both the title firm and the mortgage provider are not required to preserve a copy of this document.

 

Title Insurance Policy

 

This policy provides protection from any competing claims to your home as well as any issues regarding lawful ownership status or the property title. Your title insurance policy will pay for the costs if somebody attempts to claim your property and wishes a lawful settlement. The policy will also cover the expenses of any current property liens for debts like delinquent taxes owed by the former house owner.

 

Homeowner’s Insurance Policy

 

Your homeowner’s insurance policy includes your policy number, premium notice, and the conditions and terms of your homeowners’ insurance. Keep these files handy and regularly update them so that you have all of the needed types of polices. The policies can also provide coverage to meet the costs of natural catastrophes such as an earthquake, floods, hurricane or fire.