Closing on a Home While You’re Out of Town?

Tips for Closing on a Home When You’re Away

As much as we in the real estate industry like to believe that each real estate transaction is everyone’s top priority at all times throughout an entire transaction, the reality is that life does not stop just because you’ve signed a contract and will soon be closing on a home. What this means at times is that coming together at the closing table at an agreed upon date and time is not always possible. Many customers, both buyers and sellers alike, face time or distance constraints that prohibit them from being at a specific title company at a specific time on a given date for their closing. Whether it is a business trip, family vacation, delayed move-in plans, tight work schedule, or simply some unforeseen emergency; there are plenty of reasons why scheduling a closing on a home can get complicated in those last days. But fear not – all hope is not lost. There are several very sound options available should you not be able to make the prescribed date and time of your closing.

Mobile Notary

Basically, once the lender sends all of the loan documents to the title company, the title company can find a notary in a location where you will be on closing day. This authorized notary will come and meet you practically anywhere and will attest to your signature on all relevant documents. The originals of those documents must then be sent (generally by overnight shipment) back to the title company before a file can fund and the closing is officially done.

Why it’s a good idea:

• They come to you
• Work on your schedule
• Not restricted by business hours

Why you might want to think twice:

• You have to know in advance a designated place and time for the notary to meet you
• There is generally an additional charge for this service
• It can delay actual transfer of ownership because of the time required for the documents to make their way back to the title company
• This may not be possible in foreign countries except at consulates or with extreme restrictions
• Notary works only as a notary and cannot answer any questions you may have about specific forms or documents

Power of Attorney

You sign a legal document giving another person full legal authority to sign on your behalf. This is typically a spouse, trusted friend, or advisor.

Why it’s a good idea:

• Generally no additional fee required
• You only have to work with one person’s schedule

Why you might want to think twice:

• You must trust the person to whom you give the power of attorney
• Original Power of Attorney document must be provided to title company at closing
• You must be accessible by phone so that the title company can do an “alive and well” phone call to make sure you are 1) alive and 2) have not revoked the Power of Attorney
• Verbiage on the Power of Attorney form should be cleared with your lender and the title company in advance

Courtesy Closing

Many title companies are large enough to operate on a national level or to have office partnerships between branches or other companies. As a favor, one title company can ask one of their sister or partner offices to do the closing at that location.

Why it’s a good idea:

• Conveniently go to a location in the city near you
• Have title experts on hand to answer any questions because they are familiar with the documents/industry
• No additional fee

Why you might want to think twice:

• Person helping with the transaction won’t be familiar with your file
• Not available in every area
• Not available with every title company
• Could still result in delays with original documents making it back to the main office

Mail-Out

Title company sends closing documents to you via email, overnight mail, or courier. You find a notary and then return the documents back via overnight mail.

Why it’s a good idea:

• Minimal fees
• Sign at your convenience
• Electronic receipt of documents for reference later
• Advanced time to review documents and read through everything before signing

Why you might want to think twice:

• Notary required and you may have to seek that out
• Requires advanced preparedness by all parties, especially the lender
• Can delay funding as original documents must be returned in most cases before funding can occur
• Technology (computer, email, printer) may be required

As you can see, there are several options for closing on a home while you’re out of town. To ease the process, be sure to notify your agent immediately after finding out your plans. If they know in advance they can help plan out how you will close on the home and make sure all the pieces to the puzzle are in place to keep everything running smoothly while you are away.

image courtesy of the fabulous Ines Hegedus-Garcia who writes the excellent Miami real estate blog, www.miamism.com