Here are the 8 Real Estate Documents to Keep

I went through a couple of closets this weekend clearing out clutter and organizing things and found dozens if not hundreds of paperwork from past tax returns and real estate transactions. So it got me thinking, what do you need to keep in a real estate transaction and what to toss? It's no joke that when you sign the final closing statements on a real estate purchase it feels like you are citing your life away. There are so many documents to sign and some that literally have you sign to state that you have signed the previous document. With all of these documents what are some of the really important ones and why should you keep them? Thanks to Todd Sherman for his inspiration

#1. The purchase and sale agreement.

The basic purchase and sale agreement is your contract that will have exactly everything you agreed to and the sellers agree to. This contract signed by both the buyer and the seller confirms the purchase price, closing date, and any other details. You'll want to hold onto this document as it contains legal ramifications in case the seller fails to fulfill the duties.

Related: Can I Sign a Real Estate Contract on Behalf of My Spouse?

#2. Your buyer's agent agreement.

You may or may not have signed a buyers agent agreement but if you did, this contract will outline the details of that relationship. It may state who pays the commission, the duration of the contract, terms for terminating the contract and it's a good idea to hold on to this if you have any issues before the transaction closes. Afterward, you probably only need to hang onto it for about a year.

More: How Much Commission Should I Give the Buyer's Agent?

#3. Any amendments, rider, or addenda

Any document the gets added onto the purchase and sale contract needs to be held onto. This could change the original document and if the seller didn't complete something on the amendment or addenda, you have legal ramifications to come back and show them that the document was in writing and approved upon." - Jonathan Smith - Seattle Real Estate Attorney

Related: Who Pays for What in a Real Estate Transaction?

#4. Sellers disclosure form.

This form will show the buyer everything that the seller could possibly think of that is happen to the property. Yes, sellers are supposed to be honest, but just in case, you have something to refer back to. This will include any additions that the homeowner or previous homeowners have completed if the home has lead-based paint or asbestos, any permitted or unpermitted work, and if the home has undergone any major issues such as flooding or pest issues. More: Do Agents have to inform Buyers about previously Discovered Issues? ~ Kelli Howison

#5. Home inspection reports.

Coupled with the seller's disclosure form, these two forms can give you better insight and knowledge about your home. Use it as a checklist and fix things as you go or you have something to refer back to just in case. This detailed report will outline the condition of the home and any potential problems.

More: How to Write up an Offer and What to Offer - Dale Corpus

#6. Title insurance policies.

Title insurance protects the home during the home purchase process. It protects buyers against any claims to the home such as liens against the property or fraudulent signatures. You'll want to hang onto this just in case any other party or previous owner tries to claim the property from under you.

Related: 10 Top Ten Things First Time Homebuyers Should Know

#7. Property deed.

"This is probably the single most important piece of information and document you'll need. When the house officially becomes yours you'll receive the deed. This confirms ownership of the home to you and you alone. It's typically mail to you after the title transfer documents are recorded of the County public records office and it's the only way to prove you are the legal owner of the property." - McCormick Real Estate Agent Stephen Proski

#8. Final closing disclosures.

At least three business days before closing, or settlement where you go in and sign the final paperwork, your mortgage lender will give you the details of the loan including terms, the type of loan, your interest rate, and any closing costs. You may need this for future reference when filing your taxes so it's a good idea to hang onto it. Learn More About the New Real Estate Closing Disclosure Here

As far as how long you should keep these items, if you own the home, keep these documents as long as possible. Once you sell the home and it goes into someone else's name you probably don't need to keep them any longer than about seven years. Even if you need to refer back to something on your taxes, most tax departments will require anything past seven years.

It was great getting rid of a lot of old documents, 10+ year tax documents, and really cleaning out the clutter. But, there are some things to hang onto, especially if you've recently closed on a home.

More Good Stuff:

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• Is it Better to Buy First or Sell First?
• 9 Signs of a Great Real Estate Agent
• Can I Give Money to the Buyers at Closing for Repairs?
• When Do You Get the Keys?