What You Receive at Closing and What to Keep Forever

You leave settlement with a folder or a link to a portal, and within a week most people have no idea what is in it. Some of those documents matter for a few weeks, some for the length of your ownership, and two of them you will want in front of you decades from now. Here is what you actually received and what deserves keeping.

The three you should never lose

Your recorded deed. It arrives after settlement rather than at it, stamped with a book and page or instrument number, and it is the evidence of your ownership in the public record. Read it when it comes, because that is the cheapest moment to catch an error.

Your owner’s title insurance policy. It also arrives after closing, and it is the document that responds if somebody later claims an interest in your property. There is no renewal and no reminder, so if you file it badly you will not be prompted to find it. Its coverage is described in what title insurance covers.

Your settlement statement. It is the accounting of the entire transaction: what was paid, to whom, and on whose side. It is what your tax preparer will ask for, and it is the reference for any later question about who paid what.

Worth keeping, less critical

The survey, where one was done, because it is the record of where your lines actually are and it saves paying for another one when a fence question arises. The title commitment, which shows what the search found and what was cleared. Any lien releases obtained during the transaction, since a release that was recorded is in the record but a copy costs nothing to keep.

If you are in a community association, the disclosure package, because it contains the governing documents you are now bound by. Those obligations are described in buying a condo or home in an association.

The loan documents

Your promissory note and deed of trust set out what you owe and what secures it. Keep them for as long as the loan exists. When you eventually pay it off, the important document becomes the release, and confirming that release was actually recorded is the step most people skip. A paid loan with no recorded release behaves like an unpaid one at your next sale, which is the problem described in the missing lien release.

What matters for taxes

Keep the settlement statement from your purchase and from any refinance, and keep receipts for capital improvements you make while you own the property. Those figures affect the calculation when you eventually sell, and reconstructing twenty years of improvements from memory is not a pleasant exercise. What is deductible or capitalizable is a question for your tax preparer rather than for us.

Storage, practically

Digital copies of everything, stored somewhere that is not only your own hard drive. Paper originals of the recorded deed and the policy in whatever place you keep the documents you would grab in a fire. And tell somebody where they are, because the person who most often needs to find these documents is not the person who filed them but the family member handling matters after a death, as covered in probate for real estate.

If you have lost them

The deed is recoverable, because it is public. The clerk’s office where it was recorded can produce a certified copy for a modest fee. The policy is recoverable from the underwriter or the settlement agent who issued it. The settlement statement is usually recoverable from the settlement agent, though how long records are retained varies. None of that is a crisis. It is simply easier not to need it.

How we help

We get the recorded deed and the policy to you after settlement, explain what each document is at the table rather than sliding a stack across, and answer questions afterward when something surfaces. If you closed with us and cannot find a document, ask, because we would rather look it up than have you guess.

Common questions

Which closing documents should I keep forever?

The recorded deed, the owner’s title insurance policy, and the settlement statement. The first proves ownership, the second protects it, and the third is the accounting your tax preparer will ask for.

When do I receive my recorded deed?

After settlement, once the clerk has recorded it and returned the original stamped with a book and page or instrument number. It is not in the folder you leave with.

When does the title policy arrive?

After closing rather than at it. There is no renewal notice and no recurring premium, so file it somewhere you will find it years later without being prompted.

Do I need to keep loan documents?

Keep the note and deed of trust while the loan exists. When it is paid off, the important item becomes the recorded release, and confirming it was actually recorded is the step most people skip.

What do I need for taxes?

The settlement statement from your purchase and any refinance, plus receipts for capital improvements. What is deductible or capitalizable is a question for your tax preparer.

What if I lost my deed?

It is public. The clerk’s office where it was recorded can issue a certified copy for a modest fee. A lost policy is usually recoverable from the underwriter or the settlement agent who issued it.

This article is general information about closing documents in Virginia and West Virginia. It is not legal or tax advice, and record retention practices vary by firm. Questions about what to keep for tax purposes should go to your tax preparer.