Transferring Title in an FSBO Sale: Who Does What at Closing

You’ve just signed a purchase agreement for your house, the buyer has a signed contract, and the closing date is on the calendar—but you have no idea who will actually draft the deed, clear any lingering liens, collect the money, or file the paperwork with the county. The uncertainty can stall the process, raise the risk of missed deadlines, and leave you wondering whether you’ve complied with state and federal rules. The short answer: before you sign any documents, identify the qualified settlement professional—whether a title‑company settlement agent, escrow agent, or closing attorney—who will handle the deed, title work, fund disbursement, recording, and tax reporting. Once you have that person, follow a concise verification checklist to keep the closing on track.

Who Prepares the Deed

In an FSBO transaction the seller must sign a deed that legally transfers ownership. The Consumer Financial Protection Bureau explains that the seller signs a deed, the legal document that makes the buyer the owner Consumer Financial Protection Bureau — Mortgage closing process (opens in a new tab). The same source notes that the settlement agent prepares supporting transfer documents and records them with the county registrar or register of deeds Consumer Financial Protection Bureau — Mortgage closing process (opens in a new tab). Which professional drafts the deed depends on the settlement‑agent model used in your state.

Who Clears Title and Coordinates Supporting Documents

Title work—searches for liens, judgments, or other encumbrances—must be completed before the deed can be recorded. The CFPB notes that title‑insurance‑company settlement agents conduct closings in much of the country, while escrow agents or other models are used elsewhere Consumer Financial Protection Bureau — Shopping for title insurance and closing services (opens in a new tab). It also states the person or company conducting a closing differs by state Consumer Financial Protection Bureau — Shopping for title insurance and closing services (opens in a new tab). Because the settlement professional varies, you should ask the local closing agent which deed form and execution formalities (notarization, witnesses, etc.) apply in your jurisdiction and whether a title‑insurance policy is advisable.

Who Receives Funds and Issues the Settlement Statement

When the buyer brings the purchase price—whether by cash, wire, or other method—the settlement agent is responsible for receiving the funds, paying off any existing mortgages, and preparing the settlement (or closing) statement that itemizes all credits and debits. The CFPB’s mortgage‑closing description identifies the settlement agent prepares supporting transfer documents Consumer Financial Protection Bureau — Mortgage closing process (opens in a new tab). The same source confirms that the settlement agent records the documents with the county registrar Consumer Financial Protection Bureau — Mortgage closing process (opens in a new tab). Review the settlement statement carefully; it will show the net proceeds you will receive after payoff amounts, recording fees, and any transfer taxes.

Recording the Transfer

After the deed is signed and the settlement statement is finalized, the deed must be filed with the appropriate county office to make the transfer a matter of public record. The CFPB states that the settlement agent records the documents with the county registrar or register of deeds Consumer Financial Protection Bureau — Mortgage closing process (opens in a new tab). Recording fees vary by locality, and some jurisdictions require additional documentation such as homestead declarations or marital‑rights affidavits. Ask the settlement professional for an estimate of recording costs and the expected timeline for the county to post the deed.

Tax Reporting (Form 1099‑S)

Most real‑estate sales are reportable to the IRS on Form 1099‑S. The IRS explains that Form 1099‑S is used to report covered sales or exchanges of real estate and lists exceptions Internal Revenue Service — Instructions for Form 1099‑S (opens in a new tab). It further clarifies the person responsible for closing generally files Form 1099‑S and provides ordering rules for identifying that person Internal Revenue Service — Instructions for Form 1099‑S (opens in a new tab). When a Closing Disclosure names a settlement agent, the IRS instructions generally identify that settlement agent as the person responsible for closing for Form 1099‑S purposes Internal Revenue Service — Instructions for Form 1099‑S (opens in a new tab). In practice, the settlement agent will either file the form on your behalf or supply you with the information needed to file it yourself. Verify who will handle the filing early to avoid late‑submission penalties.

Verification Checklist

Confirm legal owner names – Ensure the names on the deed match the current recorded owners, including any spouses or co‑owners.
Ask the settlement professional which deed type applies – Different states require warranty deeds, quit‑claim deeds, or other forms, and some require notarization and witnesses.
Order title or lien work as advised – The settlement agent will arrange a title search and, if desired, a title‑insurance policy.
Obtain payoff information – Provide the settlement agent with current mortgage statements so they can calculate exact payoff amounts.
Review the settlement statement – Verify all credits (sale price, escrow deposits) and debits (payoffs, fees, taxes).
Sign through the instructed process – Follow the settlement agent’s instructions for signing the deed, any affidavits, and the settlement statement; this may involve in‑person notarization or remote electronic signing where permitted.
Confirm recording – Ask the settlement agent for a copy of the recorded deed or a recording receipt from the county registrar.
Retain final records – Keep the recorded deed, settlement statement, title policy, and any tax documents (including Form 1099‑S) in a safe place for future reference.

Following this list reduces the chance of missed steps and provides a clear audit trail for both state recording requirements and federal tax reporting.

Where Sellable Fits

Sellable can help you manage buyer inquiries, schedule follow‑up calls or texts, and keep track of tasks leading up to closing. It does not draft deeds, conduct title searches, hold escrow funds, provide signatures, file tax forms, or record the transfer. Use Sellable to stay organized while the settlement professional handles the legally required steps outlined above.

Transferring Title in an FSBO Sale: Who Does What at Closing