This chapter covers essential real estate closing documents, including affidavits, deeds, and closing statements. It emphasizes the responsibilities of paralegals in preparing these documents and highlights the importance of accuracy and ethical standards in the closing process. Key documents include title affidavits, sale agreements, and various closing checklists necessary for residential transactions.

1. Chapter 16
Real Estate Closing Forms and
Examples

2. Objectives
• After reading this chapter, you should be able
to
– Understand and prepare various kinds of
affidavits.
– Understand and prepare various real estate
closing documents.
• E.g., deeds, bills of sale, assignment of warranties,
assignment of leases, assignment of contracts

3. Objectives
• After reading this chapter, you should be able
to
– Understand the importance and particular use of
various real estate documents.
• E.g., corporate resolutions, agreements regarding
survival of loan commitments, indemnities of fees,
attorney's opinions, and compliance agreements

4. Objectives
• After reading this chapter, you should be able
to
– Prepare a HUD–1 Uniform Settlement Statement.
– Understand the documentation involved in the
closing of a residential sale and loan transaction.

5. Affidavits
• Affidavit
– Written statement of fact sworn to by the person
making the statement (affiant) under oath as a
true statement of facts

6. Affidavits
• Title affidavit
– Swears the following:
• Affiant owns the real property described in the affidavit
• Boundary lines of the real property are certain
• Affiant has a right to possession of the real property
• There are no liens, encumbrances, easements, or
leases affecting the real property unless they are
identified in the affidavit

7. Affidavits
• Title affidavit
– Swears the following:
• There are no judgments, bankruptcies, or other
restrictions against the affiant owner of the real
property
• Affidavit is being made by the affiant with knowledge
that it will be relied on by purchasers, lenders, and title
insurance companies involved with the real property

8. Affidavits
• Hazardous waste affidavit
• Affidavit of no change
• Same name affidavit
• Similar name affidavit
• Foreign person affidavit

9. Sale and Transfer Documents
• Deed
• Bill of sale
– Transfers title to personal property
– Can either contain warranties of title or be a
quitclaim bill of sale without warranties
• Assignment of warranties

10. Sale and Transfer Documents
• Assignment of leases
– Most sales require that the purchaser indemnify
the seller against all claims that may be made by
the tenants against the seller because of defaults
under the leases that occur after the date of the
sale
• Assignment of contracts
– Sale of commercial property

11. Sale and Transfer Documents
• Loan documents
– On commercial properties, the note and mortgage
may be supplemented by an assignment of leases
and rents, a security agreement, and a UCC
financing statement

12. Miscellaneous Real Estate
Closing Documents
• Corporate resolution
• Agreement regarding survival of loan
commitment
• Indemnity of fees
– Usually the seller and the purchaser each
indemnifies the other against brokers’
commissions that involve brokers retained by the
respective parties

13. Miscellaneous Real Estate
Closing Documents
• Attorney's opinion
• Compliance documents
• 1099-B report form
– Settlement agents (usually the real estate
attorney) are required to report sales of real
estate transactions to the Internal Revenue
Service
• Settlement or closing statement

14. Checklist: Residential Closing
• Title examination
• Title commitment and policy
• Survey
• Corporate resolution
• Foreign person affidavit
• 1099-B form

15. Checklist: Residential Closing
• Owner's affidavit
• Transfer tax certificate
• Warranty deed
• Bill of sale
• Termite letter
• Truth-in-lending disclosure statement

16. Checklist: Residential Closing
• Borrower's affidavit
• Promissory note
• Deed to secure debt
• Hazard and fire insurance
• Settlement statement

17. Ethics: Case Problem
• To facilitate a closing, Ann notarizes
documents in which she did not witness the
signature.
– What legal ethics or codes of professional
responsibility have been violated in this example?
• A notary has an ethical duty to actually
identify and witness a signature

18. Summary
• Paralegal should be familiar not only with
what types of real estate closing forms must
be used but also with the content of these
forms
• Paralegal should carefully review and
proofread all legal documents to minimize
mistakes