When must an affidavit of value be created in a property transaction?

In a property transaction, an affidavit of value is typically required at the closing of the transaction. This document serves to declare the actual sale price of the property and is often necessary for legal purposes, including tax assessments and ensuring that the transaction is properly recorded in public records. The affidavit helps maintain transparency and accuracy in real estate transactions, particularly concerning the transfer of ownership.

Creating the affidavit at the closing ensures that all parties have confirmed the final sale price and the transaction is completed in accordance with legal requirements. This timing allows for the inclusion of any last-minute adjustments or agreements that may have occurred during the closing process.

It’s important to note that the other choices, such as creating the affidavit before signing the sales agreement or after appraising the property, do not align with standard practices, as the final sale price may not be determined until all negotiations and adjustments have occurred during the closing. Additionally, the requirement for the affidavit is generally not contingent upon a request from the buyer, as it is a standard component of the closing documentation required by law or regulation.