In a real estate transaction, the buyer and seller deal with a number of documents and which need to be reviewed thoroughly. Here are some of the important ones you need to be aware of:
This is the main legal document that is proof of sale and transfer of the property from the seller to the buyer. The deed has to be registered as soon as possible but before that, the sale agreement should be executed. During that process, you also need to ensure that the terms and conditions are agreed upon and check the title as well. As a seller, you also need to settle all outstanding payments, water charges, electricity bills, maintenance bills etc before the Sale Deed can be executed.
The Mother or Parent deed is a critical legal document that traces the ownership of the property being sold with a record of all previous owners. This has an impact on its value and it also establishes the new ownership.
In addition to proving change in ownership, the deed also details the type of sale (whether the property was a gift, an inheritance or a new purchase). In case the original Parent Deed is not available, you can get certified copies from registration. This way you can update the sequence and make the deed more relevant.
If you live in Michigan and you need to sell a property, you need to provide an affidavit for it as well at the closing. Click To Tweet This is a verified statement which proves that:
- The property does not have any outstanding contracts
- The property does not have any outstanding mortgage payments or boundary line issues
- The property does not have any outstanding bills from maintenance/improvements that were done within the past 90 days
- There are no law or regulation violation involving the property
- If the seller lies about any of the abovementioned issues, he/she can get sued by the buyer for damages.
Transfer Tax Return
You also have to file a real estate transfer tax return when you file the deed during a transaction. This document is important as in it lets your local county treasurer know that the property has a different owner now. In addition, it also provides valuable information to local assessors as well as the Department of Revenue for assessment purposes.
The buyer receives the ‘title’ of the property which proves that they have the right to do whatever they want with it. In most transactions in real estate, the purchase offer also states that the seller will provide a title that is free of liens and provide proof to reassure the buyer. That way they will know that the home is free and clear of all obligations from the previous owner.
In other words, title insurance is basically a contract which protects buyers from loss in case the property has an undisclosed defect. The document contains legal terms that a real estate attorney will be able to decipher easily.
The bill of sale
The bill of sale proves that all of the personal property that is being sold with a home, is being transferred to the buyer. This includes appliances, air conditioners, furnaces, security systems, lights etc. The document typically refers to the contract that has a list of these items
Michigan Real Estate Continuing Education
These were just some of the items that your clients will need to maintain to ensure a transaction goes smoothly. With changes in the real estate market, they might need to amend or add more to ensure a smooth transaction.
If you want to continue as a licensed real estate agent in the state of Michigan, you need to have your license renewed before it expires. All brokers and agents in the state have to complete at least 6 hours of CE or continuing education every year and clear an exam to ensure their licenses remain active as well. Therefore, after 3 years as a real estate professional, you should have 18 hours of CE under your belt.
Don’t wait till it is too late. Sign up for 360Training.com’s Michigan Real Estate Continuing Education courses today and maintain your licensing cycle.