Where should the copy of the signed HUD Settlement Statement be kept, and for how long?
A signed copy of the HUD Settlement Statement should be kept in a safe place – preferably the same place all other important paperwork is kept. The Seller should retain the HUD statement copy for AT LEAST seven years for IRS/tax purposes. The Buyer, however, should hold on to the HUD statement copy for as long as he or she owns the property. There are many occasions when trying to resolve title matters or discharge problems that a subsequent Title Company will want to know information about the purchase. • Was a mortgage paid off? • Who was the Title Company that handled the closing? • Was Owner’s Title Insurance purchased? Because of the time-sensitive nature of real estate closings, the faster the old HUD statement is produced, the faster the Title Company can begin to work on addressing problems.
