When signing
documents for a home sale or purchase, the numbers are figured to the penny and
the signatures are scrutinized to the letter. Quite a volume and variety of
paperwork is involved. Signatures and initials are required on deeds,
disclosures, waivers, affidavits, notes, supplementary lender and title company
documents, and other miscellaneous papers.
Real Estate
closings involve getting “wet signatures.” That means papers are physically
signed in ink, in person, by hand. Remember something called cursive writing?
That’s what we’re talking about. Documents must be witnessed and signed by a
notary as well.
Both buyers
and sellers must sign in a very specific way. The seller’s signature must
exactly match the legal name that the property is vested in. Buyer signatures
must comply with their lender’s instructions.
Most signatures must match either the lender documents, the driver’s
license, the recorded documents, or however the title company wants it.
If your name
is John James Doe Jr., you may be asked to sign one document as John J Doe,
another as John Doe Jr, or JJ Doe or J James Doe — there can be different
variations of your name that require different signatures for the same closing.
In a typical
transaction, the number of documents signed or initialed at closing by the
seller often ranges between 10 and 25. For a buyer getting a mortgage loan, the
number of signatures and initials required on closing day can be between 20 and
50. Those are just the signatures and initials needed at the closing table.
From the
start of the transaction to the close of the deal, even more autographs are
involved. The buyer will sign documents at the start of the loan process including
the application, good faith estimates, and disclosures. Getting the property
under contract requires signatures from both parties on the offer, responses,
final contract, disclosures, representation agreements and various addendums.
It adds up
before you even get to closing day. If there is a homeowner’s association
involved or any special situations, more signatures are involved.
I had a
closing this week with the out of state buyers using a Power of Attorney. Their
mom was signing as the POA for both her daughter and son in law. Not many folks
realize what a huge gift this was for this purchasing couple.
Signing as
the Power of Attorney, this dear woman had to sign or initial on the dotted
line with exact instructions from the new lender 109 times. Yep, we counted.
For each signature line, she had to write the daughter’s name, her name, and
write out “agent and attorney in fact.” And she had to do the same for the
son-in-law’s signature lines. They were long ‘signatures’ x 109 times. I got
writer’s cramp just watching it.
When you’re
prepping to buy or sell a home, in addition to packing, you may need to brush
up on your penmanship. Every I needs to be dotted and every T should be
crossed. Get it wrong, miss a signature or forget an initial and you’ll be
called back to the title company to fix it before the deal is done.
The opinions
expressed are of the individual author for informational purposes only and not
for the purpose of providing legal advice. Contact an attorney to obtain advice
for any particular issue or problem.
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