Once you've come to terms with a prospective buyer for your home, you'll need to get in touch with a title company. The title deed is the document that acts as official proof of someone's ownership of a piece of property. The role of title companies is to review the title deed and alert you to any potential title issues. Incomplete documentation and disputed ownership claims are examples of title-related disputes. The issuing of title insurance is another function of title companies. This type of insurance serves as a guarantee against any losses that may arise as a result of a title dispute.
The next step in the closing process is to hire a lawyer who is an expert in real estate. It's the lawyer's job to write up a contract of sale, as well as to iron out any remaining issues that either you or the buyer may have. Such loose ends can include the down payment amount, which items in the home are to be considered a part of the sale, possession dates, closing dates, details pertaining to the mortgage and the sale price. Another important role that the lawyer plays is to protect you from signing a contract that may contain deceptive or hidden clauses. Furthermore, a lawyer will be able to inform you as to the tax implications that will result from the sale of your home. In general, you'll be able to exclude approximately $250,000 worth of taxes on capital gains. For married couples, this amount is $500,000. This exclusion, however, is contingent on you having lived in the house for at least two of the previous five years. You may also qualify for a tax exclusion if you're moving due to health reasons, a change in job or other special circumstances.