Closing on a home is the last step in the selling process, where ownership is officially transferred from the seller to the buyer.
On closing day, you’ll need to have your seller closing documents prepared. This paperwork typically includes the home’s deed and a title affidavit, closing statements and disclosures, the bill of sale, and tax forms.
A good real estate agent can help you navigate the closing process and gather the necessary closing documents for the seller. They can also prep documents for you to sign in advance so you don’t have to attend the closing.
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Closing documents for the seller to sign or review
The closing process is typically more involved for the buyer, but there are some documents that the seller needs to provide and sign. Use this seller closing checklist to ensure you have what you need:
- Deed. The deed to the home officially transfers ownership from the seller to the buyer. This is the only document you must sign at closing, but your agent can arrange for you to sign in advance or remotely. The deed is then filed with the county recorder.
- Closing statement. The seller closing statement, or settlement statement, lists all money owed on closing day. These costs may include transfer and property taxes and homeowners association fees. Your listing agent typically gives you a copy to review before closing.
- Closing disclosure. Seller closing disclosure requirements state that loan costs, fees, and other information must be given to buyers to review no later than three days before closing. You'll also receive a copy if you’ve agreed to pay part of the buyer’s fees for obtaining a loan.
- Affidavit of title. This is one of the most essential seller documents at closing. It states that the seller is the only one with the right to sell the home. It also lists any legal issues with the property, like liens and defects, which the seller must resolve before closing.
- Bill of sale. The bill of sale outlines the personal property that the seller will leave for the next owner. This often includes items like appliances, large mirrors, and window treatments.
- Tax statement. Bring your most recent tax statement to help the buyer estimate the taxes they’ll owe on the home.
- 1099-S tax form. You’ll likely have to complete a 1099-S tax form, which reports the taxes you’ll owe on the sale to the IRS. This could change if you qualify for the capital gains tax exclusion, which covers up to $250,000 (or $500,000 if filing jointly) of the net profit.[1]
- Mortgage loan payoff agreement. This statement says the seller will pay off the outstanding balance on their mortgage. You won't need this if you own your home outright.
What do I need to bring to closing as a seller?
In addition to seller documents at closing, you’ll need to bring some other things to complete the sale of your house. These include:
- Keys, garage door openers, and passcodes. Bring all keys for the property and remotes that operate garage doors or that control smart house systems. Also, have a list of passcodes for doors and gates and information for accessing thermostats, appliances, doorbells, and smart locks.
- Cashier’s checks. You’ll need to pay your listing agent’s commission, a transfer tax, and any agreed-upon credits for repairs, closing costs, and other items.
- Checkbook. Have a personal check handy in case unexpected incidentals or miscalculated costs pop up.
- Government-issued ID. Bring a photo ID, such as your driver’s license, passport, military ID, or state ID. A second form of ID, like your social security or credit card, can also be helpful.
- Proof of repairs. If you agreed to make specific repairs on the home, document the work and bring it to closing.
- Utility bills. If you negotiated for the buyer to pay these, bring the final statements with you.
- Other documents your agent requests. Your realtor may also want to give the buyer other information, like proof of a home warranty or your last property tax statement.
What happens on closing day for a seller?
A home closing is sometimes known as a “settlement” because all parties are meeting to “settle up” the property sale. A neutral third party, such as an escrow officer or closing agent, will schedule the closing, usually on a set date at a title insurance company or escrow company. It typically happens 30 to 60 days after the seller accepts the buyer’s offer.
The buyer and their agent are always present at closing, as is a closing agent. The listing agent must also attend, but the seller doesn’t have to. Agents can prepare closing documents for seller signatures ahead of time or remotely. Several states require a real estate attorney to be present, and a notary public may also be needed.[2]
Buyers typically sign all their paperwork at closing. The third party will then collect all documents and money needed to cover closing costs, which can include realtor commissions, taxes, settlement fees, and other expenses.
Once all documents are signed, the buyer receives the keys to their new home, and the seller gets the proceeds from the sale. The deed is filed with the county recorder.
A home closing can be complicated, so it’s critical to find a real estate agent who’s experienced and organized. They can guide you through each step and help you gather the necessary closing documents for seller signatures and disclosures.
FAQ
Who signs first at closing: buyer or seller?
Seller closing documents are signed first and can often be done before closing. The buyer then signs nearly everything in person at closing.
When does the seller sign closing documents?
The seller can sign documents a few days before or even the morning of closing. Their agent may also arrange for them to sign documents remotely. They often don’t have to attend the closing process.
Can the seller sign closing documents early?
Yes, the listing agent can arrange for sellers to sign their documents before closing. This can occur a few days before closing or even the morning of.
Can a seller refuse to sign closing documents?
Yes, but they may be in breach of contract. Some purchase agreements may include contingencies that let the seller legally back out of the deal. It’s crucial to have an attorney review all contracts, and sellers should consult with an attorney before trying to cancel a sale.
Does the seller need to be present at closing?
Typically, no. Your listing agent can arrange for you to sign all documents before closing. Your agent will attend, so be sure you give them everything they need to ensure the process goes smoothly.
Does the seller have to be out of the house at closing?
In most situations, the seller will give their house keys to the buyer at closing. However, sellers can negotiate more time if needed. A use and occupancy agreement specifies the additional time the seller can take to move out, and this agreement should be completed before closing.
Who generally prepares closing statements?
A closing statement is prepared by a closing agent — a neutral third party, such as a real estate attorney or escrow officer. It outlines the expenses the buyer and seller must pay to complete the home purchase and must be provided at least three business days before closing.
