There are 3 critical documents involved when it comes to buying real estate. They include a description of the property you are buying and proof that you now own it without any dispute.
Since there’s almost an infinite number of different types of documents involved in this, it’s best to just know what the document does instead of actually trying to look for the same language everywhere. This is more like a checklist than an actual guide.
The first document you need to watch out for is the receivable sale and the purchase agreement. This document lists out sellers, buyers, receivables and whatever’s agreed upon. The first part of the document will be a description of the agreement and will include details like monthly payments, interest rate, date, remaining payments, etc.
There could also be a section which lists out other documents asked for by buyers including credit reports, pay history, original notes, endorsements, etc. There will be a section which describes purchase price and how it is going to be paid.
One more section which you may or may not care for much is the one about seller warranties. This might not seem like a very important thing but it actually is. This is where the seller confirms that they are the owners of the property.
The other two documents include the assignment for the deed of trust and the transfer of ownership document. It is very important for you to make sure that the ownership transfer document clearly mentions the words ‘Without Recourse.’ This is confirmation that the deal is final and there is no turning back. Without this, the seller may return at a future date to ask for more money or the buyer may return to ask for a refund. Both are situations you wouldn’t want, right?