3. Other documents
On the day of closing, be prepared to sign many documents! Some of these documents must be notarized and recorded with the city or county recorder. Fortunately, the closing attorney or the title agent will send the documents (either online or in person) to the city or county recorder, and then the house is officially yours.
Let’s take a look at the documents that you’ll be signing.
Deed
The deed is a physical document that transfers the property title from the seller to the buyer. When the new deed is made in the buyer’s name, it is recorded with the city. Remember that since it is recorded with the city, it will be made public that you officially and legally own the property.
There are a few different types of property deeds, but the three most common are called a general warranty deed, a grant deed, and a quitclaim deed. The general warranty and grant deed have some provisions that’ll protect you as the buyer. Upon signing the deed, the seller is indicating that the house is clear of title defects, liens, and other problems with the title.
Title review
Much like a background check for employment, a title review is done for the buyer’s benefit, and mortgage lenders often will require a title review, too. The title company or real estate attorney investigates the title to ensure that there aren’t any liens on the house, missing heirs, or other issues. If the search turns up any problems or defects, that could delay closing.
Mortgage or deed of trust
A mortgage, sometimes called a deed of trust, is an agreement between the buyer and mortgage lender that says the lender has an interest in the property. Should the buyer default on the loan, this document states that the lender has the right to put the property up for foreclosure.
