Summer is here and it might be time to travel! If you plan on being away and are in the middle of a real estate transaction, it’s important to keep your agent and title company informed. The obvious would be to let them know about your travel dates and locations but here are a few other things to think about:
Will you have access to internet service during your travels. If you are heading on an African safari or deep into the rain forest, internet access might be an issue.
How will you arrange deposits for Earnest Money funds or funds to close? Certain banking institutions require in-person initiation of wire transfers for amounts exceeding a certain threshold. Being aware of these requirements in advance allows you to make the necessary arrangements and prevent any unforeseen obstacles.
Have you completed the initial digital opening package sent by escrow? This package is typically delivered via email and it provides prompts so you can easily complete your documents. You don't want to have to do paperwork while you're sailing the Greek islands, right?
If you are travelling internationally and need to sign notarized documents, you might want to appoint a Power of Attorney (POA) to sign on your behalf. The escrow company can assist in preparing the POA and arranging for it before you leave. Another option would be to set up an appointment at the United States Embassy in the country you visit but that can be a bit challenging and getting documents delivered to the international location is also a consideration.
Depending on the transaction, title may need to review specific legal documents to ensure signing authority is in order and all relevant parties are included. Make sure to get your documents to the title company as soon as you can before departure. Sometimes you need signatures from partners, trustees, family members etc. Here is a short list of transactional situations that will require documents and review:
Statement of Identity: This form establishes and confirms your identity, ensuring there are no unresolved matters that could impact the property's title, such as child support liens, judgments, or bankruptcies.
LLC - Operating Agreement: If the property's title is vested in a Limited Liability Company (LLC), the title department needs to review the section of the operating agreement that pertains to the sale of real property. This step helps determine which member or governor is authorized to sign on behalf of the LLC.
Corporation: If the property's title is vested in a corporation, the title department will require the formation documents or Articles of Incorporation specific to the sale of real property for review.
Trust: If a trust is involved in the property's title, the title department needs to review the portion of the trust document that specifies the trustee(s) authorized to sign for the sale of real property. This document is sometimes referred to as the Abstract of Trust.
Settlement Agreement: In cases where the property was held within a marital community and you have since divorced, the title department will need to review the terms of the settlement agreement.
Since you don’t want to be stressed on your dream vacation, preparation and communication are the key! Enjoy the summer!
Source: Chicago Title Company