Four documents carry a note sale: the promissory note, the recorded mortgage, deed of trust or land contract, the closing statement from when the property was sold, and a record of the payments received. Copies are enough to get an offer, and the original note is needed at closing.
Anything else on a buyer’s list either backs up one of those or proves you have the right to sell. The table shows what each paper is for and where a missing one is likely to be.
The core documents
| Document | What it proves to a buyer | Where to look |
|---|---|---|
| Promissory note | The debt exists, and its terms: amount, rate, payment, due dates, late charges | Your closing folder, a safe, the attorney or title company that closed the sale |
| Mortgage, deed of trust or land contract | The debt is tied to the property and the lien is on the public record | Your closing folder, or the county recorder’s office |
| Closing statement | The sale price, the down payment and that the deal closed as described | The title company, escrow company or attorney who handled the sale |
| Payment record | How the payer has actually paid, and so the true balance | Your servicer, or your own bank statements |
The promissory note
The note is the asset itself: the payer’s signed promise, which the buyer is purchasing the right to enforce. Check that every page is there, that it is signed, and that any later change was put in writing. If you and the payer ever agreed to alter the payment or the rate, the buyer needs the signed modification as well.
At closing you transfer the original by signing an endorsement, either on the note or on a page attached to it called an allonge.
The security instrument
This is the document that makes the property collateral for the debt. Depending on the state and the deal it is a mortgage, a deed of trust, or a land contract (also called a contract for deed). A buyer cares most that it was recorded with the county, because recording is what establishes where your lien stands against other claims on the property.
Look for the recorder’s stamp, which carries a date and a book and page or instrument number. If your copy has none, ask the county for the recorded version. If the document never was recorded, tell the buyer and ask an attorney or title company what late recording would involve in your state, since the buyer will want to know what else reached the record in the meantime.
The closing statement
Also called a settlement statement, it shows what the property sold for and how much the payer put down. Buyers read the down payment as a measure of the payer’s own money in the property.
The payment record
A buyer wants every payment listed with the date it was due, the date it arrived and the amount. A servicing company, if one collects for you, can print the full history. If you collect yourself, bank statements or deposit records count for more than your own ledger because they come from a third party, and they are the place to start when you have to prove a payment history that has holes in it.
Papers that are prepared for you
Some of the paperwork does not exist yet. The buyer or the closing agent drafts the following at the later stages of the sale, and your part is to read each one before you sign:
- The note purchase agreement, which is the contract for the sale
- The endorsement or allonge that transfers the note
- The assignment that transfers the lien and is recorded with the county
- The letter that tells the payer where to send future payments
Supporting documents a buyer may ask for
- Title insurance policy from the original sale. It shows the state of the title when your lien was created.
- Proof of hazard insurance. The current policy on the property, ideally naming you as the party to be paid after damage.
- Property tax status. A recent bill or a printout from the county showing whether taxes are current, since unpaid property taxes can rank ahead of your lien.
- The payer’s details. Full name, mailing address and contact information, plus whatever the buyer says it needs in order to look at the payer’s credit.
- Your identification. A government photo ID for the notary and the closing agent.
If the note is not held in your own name
A buyer has to be sure the person signing has authority to sell, and what proves it depends on who the holder is.
| Holder | Commonly requested |
|---|---|
| Two or more people | Signatures from every holder named on the note |
| An LLC or corporation | Formation documents and something showing who may sign for the company |
| A trust | The trust agreement, or a summary of it, naming the trustee and the trustee’s powers |
| An estate | The court document appointing the executor or administrator, and a death certificate |
| A surviving spouse or heir | Depends on how the note was held and on state law |
A general picture only. Requirements for a trust, an estate or an inherited note vary by state and situation, so confirm them with an attorney before you promise a buyer a closing date.
When something is missing
Over the life of a note people move, attorneys retire and files get thinned out. How hard a gap is to fill depends on which paper is missing.
A lost closing statement is the mildest case. The closing agent may still hold a copy, and the recorded documents and the note show much of what it would have. A lost mortgage or deed of trust is also recoverable, since the county recorder keeps the recorded version and will issue a copy. A payment record can be rebuilt from bank statements, and a buyer may ask the payer to confirm the balance in writing.
The original note is the hard one. A copy proves the terms but cannot prove that you still hold the note. If yours cannot be found, read up on selling a note without the original document before you ask for offers, because some buyers will go ahead on a sworn statement that it has been lost, at a price that may reflect the added risk, and others will decline.
Whatever is missing, tell the buyer before the offer is made. Buyers put a price on uncertainty, which is how paperwork quality affects your note’s value.
Sending documents, and what to do with the original
A price does not have to wait for the full file. When you send us the note details, list what you have and what you cannot find, so that the offers are built on the file as it really is. Once papers start to move, a few habits protect you:
- Send copies or scans until closing, and keep the original note in your possession until the closing instructions say where it goes.
- Scan every page in order, signature pages included.
- When the original does travel, use a courier with tracking and keep a full copy.
- Do not write on the original note, staple through it or laminate it.
The original note is the one paper on this page that no county office or closing agent can reissue. Find it first, decide where it stays until closing, and then gather what you can of the other three.
Related questions
Do I need the documents before I ask for a price?
No. A first price needs the facts of the note, not the file. Documents are reviewed after you accept an offer, although telling the buyer early about anything missing makes the first number more reliable.
Should I send my original note to a buyer who asks for it early?
Keep the original until closing instructions say where it goes. Copies or scans are enough for a buyer to review the file. An early request for the original with no signed agreement in place is a reason to ask questions.
What if my mortgage or deed of trust was never recorded?
Tell the buyer. It can often be recorded late, but the buyer will check whether other claims were recorded against the property first. An attorney or title company can explain what applies in your state.