A closing affidavit in real estate is a sworn statement affirming the accuracy of information provided during a real estate transaction. It's a crucial document that protects both the buyer and the seller from potential legal issues after the closing. This comprehensive guide will provide you with a sample closing affidavit, explain its purpose, and answer frequently asked questions.
What is a Closing Affidavit in Real Estate?
A closing affidavit, also known as a closing statement affidavit or seller's affidavit, is a legally binding document signed by the seller (and sometimes the buyer) at the closing of a real estate transaction. It serves as a sworn statement confirming various aspects of the sale, ensuring transparency and accuracy. The specific information included can vary by state and the individual circumstances of the sale, but generally includes statements regarding:
- Property condition: Affirmation that the seller hasn't made any undisclosed repairs or alterations since the last inspection.
- Ownership: Confirmation that the seller is the rightful owner of the property and has the authority to sell it.
- Liens and encumbrances: A statement verifying that the seller is aware of any existing liens or encumbrances on the property and that they have been addressed.
- Taxes and assessments: Confirmation that all property taxes and assessments are current or have been properly accounted for.
- Compliance with laws: A statement assuring compliance with all applicable laws and regulations.
- Representations and warranties: Specific declarations made by the seller regarding the property's condition and title.
Sample Closing Affidavit (Note: This is a sample and may not be suitable for all jurisdictions. Consult with a legal professional for your specific needs.)
AFFIDAVIT
State of [State] } County of [County] } ss.
Before me, the undersigned authority, personally appeared [Seller's Name], who, being first duly sworn, deposes and says:
- That I am the owner of the property located at [Property Address].
- That I have full power and authority to sell and convey said property.
- That the property is free and clear of any liens or encumbrances, except as specifically disclosed in the real estate contract. (List any exceptions here)
- That since the last inspection, I have not made any unreported repairs, alterations, or improvements to the property.
- That all property taxes and assessments are current, or have been paid as agreed upon in the real estate contract.
- That I am aware of all applicable laws and regulations regarding the sale of this property and have complied with them.
- That the information contained in this affidavit is true and correct to the best of my knowledge.
Further your affiant sayeth not.
[Seller's Signature]
[Seller's Printed Name]
Sworn to and subscribed before me this ____ day of __________, _____.
[Notary Public Signature] [Notary Public Seal] [Notary Public Commission Expiration Date]
What Information Should Be Included in a Closing Affidavit?
The specifics of a closing affidavit will differ depending on your location and the details of the sale. However, you can expect to see details relating to the following:
- Full Legal Description of the Property: This ensures there's no ambiguity about which property is being discussed.
- Seller's Identification: Full legal name and address of the seller.
- Buyer's Identification: Full legal name and address of the buyer.
- Date of the Affidavit: The date the affidavit is signed.
- Notary Public Information: Signature, seal, and commission expiration date of the notary public who witnesses the signing.
Why is a Closing Affidavit Important?
A closing affidavit is vital for several reasons:
- Protects the Buyer: It provides the buyer with assurance that the property is being sold legally and honestly.
- Protects the Seller: It protects the seller from future liability related to undisclosed issues.
- Supports the Title Insurance: The affidavit contributes to the overall due diligence for the title insurance company.
- Facilitates a Smooth Closing: It ensures a clear and transparent process for all parties involved.
What Happens if False Information is Included in a Closing Affidavit?
Providing false information in a closing affidavit is perjury, which is a serious crime. It can lead to severe legal repercussions, including substantial fines and even imprisonment. This underscores the importance of accuracy and honesty when completing this document.
This guide provides a general overview and a sample closing affidavit. Always seek legal counsel to ensure you have the correct and legally sound documentation for your specific real estate transaction. The laws surrounding real estate closings and affidavits vary significantly by state and local jurisdiction.
