Most purchase agreements sell the home in as is condition and the buyer is liable for any problems after the closing. The laws of some states ask for the seller's disclosure statement which should be made before the purchase agreement. Disclosure statement tells what the seller knows about the condition of the property. If the home comes with any lead based paint then the laws requires this to be disclosed also.



When you buy a home you must make sure of clear titles over the property. Problems with the title could include rights of tenants, unpaid taxes, existing mortgages and land contacts, or dower. Titles may also be affected by easements or building and use restrictions which limit how the property can be used.

The deed is the legal document used to transfer the title of the property. A warranty deed is generally use while selling the home, with this the seller guarantees certain things related to the title of the property. Before closing the agreement the buyer should receive the title insurance which lists recorded easements, building and use restrictions and liens on the property. If there are any problems with title, the seller should correct those problems before closing.

A survey could also be conducted on the home which will show the amount of land, exact boundaries, roads, easements and encroachments onto or off of the property. If the home is not a part of a land division then the purchase agreement and deed should state the number of land divisions the seller is giving to the buyer. A land division is the right to lawfully split the land into two or more parcels.

Closing happens when the buyer pays the seller and the seller transfers title to the property. Most closings are held by a title company lender or lawyer. The closing statement will contain the summary of the amounts paid and received by the buyer, seller and third parties involved. It should contain the purchase price, adjustments for real property taxes and utilities, broker commissions, transfer taxes, title insurance premiums, mortgage and lien payoffs and other closing adjustments. Care should be taken that it includes all the mounts spent for the purchase.

The transfer taxes are normally paid by the seller payable when the deed is executed. Actual possession happens only after closing, if the seller happens to remain in the home after closing he pays rent for that period. The buyer has to take the responsibility to record the deed or land contact with the local county Register of Deed office promptly after closing. He must also file a property transfer affidavit within 45 days after closing; the affidavit discloses the identity of the buyer and seller as well as the date of transfer and purchase price.

The bill of sale transfers titles to appliances and other personal property. Unlike the deed it is not recorded.

If you stay in the house then you can claim it as homestead and pay lower real property taxes, a homestead affidavit must be paid before the local assessor.

Every home should have an insurance whose policy must cover liability if someone gets hurt in the property and property damage due to fire or other casualty. In case the buyer or seller cannot perform all obligations before closing all documents or money should be placed in escrow with the Title Company, broker or lawyer until all conditions are satisfied.

If any further problems occur then you can seek the advice of a lawyer.