The documents a title company needs at closing fall into three groups: paperwork the seller provides to prove clear ownership and settle any debts tied to the property, paperwork the buyer provides to verify identity, funds, insurance, and loan terms, and records the title company gathers on its own through a title search. The exact list shifts with the property type, whether a mortgage is involved, and the parties’ circumstances, but the core requirements are predictable. Pulling everything together early is the single most effective way to keep closing on schedule.
What the Seller Brings
The seller’s side centers on proving clear ownership and disclosing anything that could complicate the transfer. Expect to produce:
- The current recorded deed. This shows the seller legally owns the property. The title company uses it as the starting point for its own search and to prepare the new deed transferring ownership to the buyer.
- A mortgage payoff statement. If there is an outstanding loan, the seller’s lender issues a statement showing the exact balance to pay it off, including per-day interest. The title company uses this to calculate what comes out of sale proceeds at closing.
- A seller’s affidavit of title. A sworn statement confirming the seller owns the property, hasn’t granted any undisclosed interests in it, and isn’t aware of boundary disputes, mechanic’s liens from recent work, or other problems that wouldn’t show up in public records. The affidavit fills the gap between what a title search can find and what only the seller would know.
- HOA documents, if applicable. For a property in a homeowners association, the title company needs the declaration of covenants, current financial statements, and a letter confirming whether the seller owes any assessments or fees. Unpaid HOA dues can become liens, so the title company will not close without verifying the account is current.
- Existing leases and service contracts. Any rental agreements, equipment leases, or ongoing service contracts tied to the property must be disclosed. The buyer inherits these obligations, and the title company accounts for them in the closing documents.
Tax Paperwork the Seller Signs
Two federal requirements catch sellers off guard more than anything else at closing. Both involve certifications the title company must collect before it can distribute proceeds.
FIRPTA Non-Foreign Affidavit
Under the Foreign Investment in Real Property Tax Act, the title company is required to withhold 15% of the sale price and send it to the IRS if the seller is a foreign person and the sale price exceeds $300,000. To avoid that withholding, a U.S. seller signs a certification stating under penalty of perjury that they are not a foreign person. The certification must include the seller’s name, taxpayer identification number, and home address. The title company, acting as the closing agent, typically holds this affidavit as a qualified substitute for the buyer.
If the property sells for $300,000 or less and the buyer intends to use it as a residence, withholding does not apply regardless of the seller’s status. For sales between $300,000 and $1 million where the buyer will use the property as a residence, a reduced 10% rate applies.
IRS Form 1099-S Information
The title company reports most real estate sales to the IRS on Form 1099-S. To complete that form, it needs the seller’s taxpayer identification number, full legal name and address, the closing date, gross proceeds, and a property description. The seller also discloses whether they received any non-cash consideration and whether the buyer reimbursed them for property taxes.
Sellers can certify that the sale qualifies for the principal-residence exclusion, which may exempt them from receiving a 1099-S. The title company still collects the information in case the exemption doesn’t apply.
What the Buyer Brings
The buyer’s paperwork is lighter on the ownership side and heavier on the financing side, especially when a mortgage is involved.
- Government-issued photo ID. Every person signing closing documents needs valid identification for notarization. A driver’s license or passport works in virtually all cases. The name on the ID must match the name on the closing documents exactly, so anyone who has recently changed names should bring supporting documentation like a marriage certificate.
- Proof of funds. The title company needs to see that the buyer can cover the down payment and closing costs. For a cash purchase, a recent bank statement usually suffices. For a financed purchase, a cashier’s check or wire transfer confirmation for the amount due at closing is standard. Title companies increasingly require wire transfers rather than cashier’s checks because of fraud concerns.
- The Closing Disclosure. When the buyer is getting a mortgage, the lender prepares a Closing Disclosure that breaks down every loan term, interest rate, monthly payment, and closing cost. Federal rules require the buyer to receive this document at least three business days before closing. The title company coordinates with the lender so that the numbers on the Closing Disclosure match the settlement statement.
- Proof of homeowner’s insurance. Lenders require hazard insurance to be in place before closing, so the buyer provides an insurance binder or declarations page showing the property is covered effective on or before the closing date. The title company confirms this on behalf of the lender.
When a Spouse or Power of Attorney Is Involved
Spousal Consent
In many states, a married seller cannot transfer property without the other spouse’s signature, even if only one spouse is on the title. This applies most commonly to homestead property. Community property states generally require both spouses to sign any conveyance of community assets. The title company will ask about marital status early in the process, because discovering a missing spousal signature at the closing table can delay the transaction by days or weeks.
On the buyer’s side, some states also require a spouse to sign mortgage documents even when only one spouse is on the loan. The title company flags these requirements based on the state where the property is located.
Power of Attorney
If a buyer or seller can’t attend closing in person, a power of attorney lets someone else sign on their behalf. For real estate, it must be written, signed by the absent party, notarized, and specific enough to cover the property and transaction at hand. A general power of attorney that doesn’t mention real estate may not be accepted. Most title companies and lenders want to review the document well before closing day, and some lenders won’t accept one at all for certain loan types. Sending it to the title company at least a week ahead avoids last-minute rejections.
What the Title Company Gathers on Its Own
The documents the buyer and seller provide are only half the picture. The title company runs its own investigation, and the results often determine whether the deal closes on schedule.
Title Search and Examination
The title company searches public records to trace the property’s ownership history, sometimes going back decades. The search looks for recorded liens, court judgments against current or former owners, unpaid taxes, and any gaps or irregularities in the chain of ownership. A clean chain of title means each transfer from one owner to the next was properly recorded and legally valid. When the search turns up problems, the title company works with the seller to resolve them before closing.
Tax and Assessment Records
Property taxes are prorated between buyer and seller at closing, so the title company pulls current tax records to calculate each party’s share. If the seller has prepaid taxes for a period extending past closing, the buyer reimburses a portion. If taxes are unpaid, the amount owed comes out of the seller’s proceeds. The title company also checks for special assessments from the municipality or HOA that could become the buyer’s responsibility.
Easements, Restrictions, and Survey Issues
The search also reveals recorded easements that give third parties rights to use part of the property, such as utility access or shared driveways. Deed restrictions limiting what the owner can build or how the property can be used also surface here. In some transactions the title company requires a current property survey to confirm boundaries and identify encroachments. Lenders frequently require a survey as a condition of issuing the loan.
Title Commitment and Insurance Policies
After completing the search, the title company issues a title commitment, sometimes called a preliminary title report. The commitment is the title company’s offer to issue a title insurance policy and lists every exception and requirement that must be satisfied before closing. Exceptions matter: anything listed as an exception is something the title insurance policy will not cover, so if an easement, lien, or restriction appears there and the buyer doesn’t object before closing, it becomes the buyer’s problem permanently.
Most financed transactions involve two policies prepared by the title company: the lender’s policy, which the lender almost always requires, and the owner’s policy, which is optional but worth considering. Title insurance is a one-time premium paid at closing rather than a recurring cost, based on the property’s purchase price or loan amount. Rates vary significantly by state because some states regulate them and others do not. Claims the search missed, such as forged documents in the chain of title, undisclosed heirs, or recording errors at the county level, are the kind of problems title insurance exists to cover.
What Happens When Documents Are Missing or Late
A missing document rarely kills a deal, but it almost always delays one. The usual culprits are mortgage payoff statements that take the seller’s lender too long to produce, HOA estoppel letters that arrive after the scheduled closing date, and powers of attorney that the lender rejects at the last minute. Each can push closing back by a few days to a few weeks.
The costlier problem is when a missing document reveals a substantive issue. A seller who can’t produce a clear payoff statement may have a second lien they forgot about. An HOA letter might show a code violation with an outstanding fine. The title search might uncover a judgment lien the seller didn’t know existed. In those cases the title company pauses the transaction until the issue is resolved, because closing with a known defect exposes the buyer and the title insurer to liability.
Staying in close contact with your title company and responding to document requests within a day or two is the most practical thing either party can do to keep the process moving. Title companies handle hundreds of closings and know which documents tend to arrive late. If they flag something as urgent, take them at their word.