This document outlines 10 key pieces of paper that buyers and sellers must provide when buying or selling a home. It discusses identification, pay stubs, bank statements, tax returns, updated financial documents, quitclaim deeds, divorce decrees, gift letters, compliance certificates, and mortgage statements. For each document, it specifies who must produce it and why it is required, usually by the lender, title company, or local government regulations. The overall purpose is to verify identity, income, funds, legal ownership or marital status, and pay off any existing mortgages.

1. 10 Pieces of Paper You Must Round
Up to Buy (or Sell) a Home

2. 1. ID. Who must produce it? Buyers and
sellers. Why? The Lender wants to know that you
are who you say you are, buyers, and the title
insurance company wants to make sure, sellers,
that you actually have the right to sell the
home. Funny enough, this commonly goes
unrequested until you get to the closing table,
when the notary requests to see it before signing,
but some mortgage brokers and even some real
estate brokers and Realtors may ask to see it earlier
on.

3. 2. Pay cheque Stubs. Who must produce
it? Any buyer financing their purchase with a
mortgage. Why? Buyers’ purchase price ranges
are determined, in part, by their income.

4. 3. Two months’ bank account statements. Who
must produce it? Buyers getting financing;
sellers selling short. Why? Buyers’ lenders now
require proof of regular income and proof that
the down payment money is your own.

5. 4. Two years’ T4 forms or tax returns. Who
must produce it? Mortgage-seeking buyers.
Why? Banks want to see a stable, long-term
income. They also limit you to claiming as
income the amount on which you pay taxes.

6. 5. Updated everything. Who must produce it?
Buyer/mortgage applicants. Why? Because things
change, and because the time period between
the first loan application and closing can be many
months - on today’s market. During the time
between contract and closing it’s not at all
unusual for underwriters to demand buyers
produce updated mortgage statements, pay
stubs, and such - and its quite common for them
to call your office the day before closing to
request a last minute verification of employment!

7. 6. Quitclaim deed. Who must produce
it? Married buyers purchasing homes they plan
undisputed title is being transferred in the sale.

8. 7. Divorce decree. Who must produce it?
Buyers and sellers who need to document their
solo status or the property-splitting terms of
their divorce. Why? Again, to ensure the seller
has the right to sell. Recently single buyers
might need to prove they shouldn’t be held to
account for their ex’s separate debts or credit
report dings.

9. 8. Gift letters. Who must produce it? Buyers
using gift money toward their down
payment. Why? The bank wants to be sure the
gift came from a relative, and is their own
money to give. They also want the relative to
confirm in writing that it’s a gift, not a loan - a
loan would need to be factored into your debt
load.

10. 9. Compliance certificates. Who must produce it?
Usually sellers, but sometimes buyers, by contract.
Why? Some local governments require various
condition requirements be met before the property
is transferred, like some cities which require a
sewer line be video scoped and repaired, cities
which require a checklist of items be met before a
certificate of occupancy be issued and energy
conservation ordinances which require low-flow
toilets and shower heads to be installed. Ask your
real estate pro for advice about which, if any, such
ordinances apply in your area.

11. 10. Mortgage statements. Who must produce
it? Any seller with a mortgage. Why? the lawyer
will need to use them to order payoff demands
from any mortgage holder who has to get paid
before the property’s title can be transferred.

12. Randy Bett
Investment Realtor/Author/Investor
Real Estate Professionals Inc.
Better Group Real Estate
202-5403 Crowchild Trail NW
Calgary, AB T3B 4Z1
Phone:403-774-7464 Ext:1
Fax:403-208-0082
Toll Free fax:888-711-6801

13. Randy Bett
www.BetterGroupRealEstate.ca