Buying or selling a property is a significant undertaking, and the closing process often involves a mountain of paperwork. One crucial document is the closing affidavit, which serves as a sworn statement affirming various aspects of the transaction. This guide provides a sample closing affidavit, explains its purpose, and clarifies frequently asked questions.
What is a Closing Affidavit in Real Estate?
A closing affidavit is a legal document signed by the buyer and/or seller under oath, attesting to the truthfulness of certain statements regarding the real estate transaction. These statements can vary depending on the specifics of the sale, but generally cover aspects like the property's condition, outstanding debts, and compliance with relevant laws. It's a vital part of the closing process, offering legal protection to all parties involved. Think of it as a final, sworn declaration of facts related to the transaction.
Sample Closing Affidavit (Note: This is a sample and should not be used as a legal substitute. Consult with a legal professional for your specific needs.)
AFFIDAVIT
State of [State] ) County of [County] ) ss.
Before me, the undersigned authority personally appeared [Buyer's Name] and [Seller's Name], who, being first duly sworn, depose and state as follows:
-
Property Description: The undersigned are involved in the sale of the real property located at [Full Property Address], legally described as [Legal Description of Property].
-
Purchase Price: The purchase price for the above-described property is $[Purchase Price].
-
Disclosure of Defects: [Buyer's Name] acknowledges having received and reviewed all disclosures concerning the condition of the property and affirms that all known material defects have been disclosed to their satisfaction. [Seller's Name] affirms that they have disclosed all known material defects in the property to [Buyer's Name].
-
Outstanding Liens and Encumbrances: To the best of their knowledge, there are no outstanding liens, encumbrances, or other claims against the property except as specifically disclosed and agreed upon in the purchase agreement.
-
Compliance with Laws: The undersigned affirm that the property is in compliance with all applicable zoning ordinances, building codes, and other relevant laws.
-
Payment of Taxes: Property taxes have been paid current up to [Date].
-
Occupancy: [Buyer's Name] intends to occupy the property as [Owner/Tenant].
The undersigned further state that the foregoing statements are true and correct to the best of their knowledge and belief.
[Buyer's Signature] [Seller's Signature]
[Printed Name] [Printed Name]
Subscribed and sworn to before me this [Date]
[Notary Public Signature] [Notary Public Seal] [Notary Public Commission Expiration Date]
Frequently Asked Questions (FAQs)
H2: What information is typically included in a closing affidavit?
The information included in a closing affidavit varies based on the specifics of each real estate transaction but commonly includes details about property identification, purchase price, disclosures regarding property conditions and defects, confirmation of the absence of undisclosed liens or encumbrances, and affirmations of compliance with relevant laws and regulations. The affidavit may also address matters like occupancy intentions and payment of property taxes.
H2: Who signs a closing affidavit?
Typically, both the buyer and the seller sign the closing affidavit. In some cases, other parties involved in the transaction might also need to sign, depending on the circumstances.
H2: Is a closing affidavit legally binding?
Yes, a closing affidavit is a legally binding document. Because it's signed under oath, providing false information in a closing affidavit can have serious legal consequences, including perjury charges.
H2: When is a closing affidavit typically signed?
A closing affidavit is typically signed at the closing table, along with other closing documents. It's part of the finalization of the real estate transaction.
H2: What happens if there are discrepancies in the closing affidavit?
Discrepancies in a closing affidavit can lead to significant problems, potentially delaying or even jeopardizing the closing. It's essential to ensure the accuracy of all information provided before signing. If discrepancies arise, immediate resolution is crucial, possibly requiring negotiation between the parties or legal intervention.
H2: Can I use a generic closing affidavit form?
While a generic form might serve as a template, it's strongly recommended to consult with a real estate attorney to ensure the closing affidavit is tailored to the specific details of your transaction and complies with all applicable state and local laws. The use of a customized affidavit minimizes risks and prevents potential future issues.
Remember: This information is for educational purposes only and does not constitute legal advice. Always seek professional legal counsel for matters related to real estate transactions. Consult with a real estate attorney or a qualified legal professional to ensure compliance with all applicable laws and regulations in your jurisdiction.
