> ## Documentation Index
> Fetch the complete documentation index at: https://docs.pylon.mortgage/llms.txt
> Use this file to discover all available pages before exploring further.

# Net Proceeds from Property Sale

> Provide documentation of net proceeds from a property sale to support asset sourcing and liability payoff validation.

## What this task is

This task collects documentation that shows the **net proceeds** the borrower receives from the **sale of an owned property**.
While closely related to the **Closing Disclosure**, the focus here is specifically on:

* The **amount of cash available to the borrower after all payoffs, fees, and adjustments**, and
* How those proceeds will **flow into the borrower’s accounts** or be applied at closing.

## When this task is required

This task is required when:

* A property sale is being used as a **source of funds** for:
  * **Down payment**,
  * **Closing costs**, or
  * **[Reserves](/entity-models/key-concepts/reserves)**, and/or
* The sale is intended to **pay off mortgages or other liens** that impact the borrower’s qualification.

It is especially important when the **timing and amount of proceeds** are central to the new loan’s structure.

## Why this task is required

Lenders must be able to:

* Trace the **origin and amount of funds** used in the new transaction, and
* Confirm that those funds come from **acceptable, non-borrowed sources**.

Net proceeds documentation:

* Confirms the **actual cash the borrower receives** from the sale, beyond what is used to pay off liens and closing costs.
* Supports **asset sourcing requirements**, ensuring that funds applied to the new loan can be clearly tied back to the sale.
* Helps underwriters validate that **liabilities tied to the sold property were fully satisfied** as expected.

Without clear evidence of net proceeds, the lender may:

* Have to **reduce the counted assets**, or
* Treat the file as **incomplete** from a sourcing and payoff perspective.

## Documents needed to resolve this task

To satisfy this task, provide:

* Documentation that clearly shows **net proceeds**, such as:
  * The **final Closing Disclosure** from the sale highlighting the **cash to seller** line item, or
  * A **settlement statement** from the closing agent that itemizes **gross sale price, payoffs, fees, and cash to the borrower**.
* If the proceeds have already been **deposited into an account**, also provide:
  * **Bank or asset account statements** showing the **incoming deposit** that matches the net proceeds figure, supporting end-to-end sourcing.

These documents allow the underwriter to tie the **property sale event directly to the borrower’s available funds** and confirm that associated liabilities were handled correctly.