[Editor’s note: Fannie Mae recently issued new restrictions on use of Power of Attorney. Please read this article and contact our office with any questions.]
If you must use Power of Attorney, please contact our office.
Almost all title company material and information is geared toward the purchaser, but what about the seller? After all, just like it takes two to tango, you cannot buy without a seller.
The reason title companies focus on the buyers is because, in the DC metro area, it is the purchaser who chooses the title company. This does not mean that the seller should not become informed and not be aware of the fees that are being paid to the title company.
Most companies do not post this information, on Federal Title’s website, seller fees are posted and easily available.
Also, Federal Title & Escrow Company has developed a detailed seller calculator that can help sellers calculate net proceeds.
The seller’s main responsibility in regards to the title company is providing loan payoff information, condo or HOA contact information, and proof of authority to sign if the seller is a trust, an estate, a partnership, an LLC or a Corporation.
Please refer to the seller’s section if you fall into any of those categories and provide the necessary documentation to our office at least five days prior to closing.
If you are intending on using a Power of Attorney for settlement, please contact our office as soon as possible and send us a copy of the Power of Attorney so that we can review and approve it.
Keep in mind that we will need the original for recording. More detailed information in regards to using a Power of Attorney can be found in the article “Power of Attorney Pitfalls.”
In certain circumstances, it may be beneficial to participate in a Reverse or Starker tax-deferred exchange (1031). Once again, please notify us in advance if this is your intention, since we will have to coordinate with the exchange company.
At the settlement, the seller will typically have less than 10 documents to sign and will need no more than 20 minutes (in contrast with the buyer’s 60 minutes and 60-100 pages of signing).
Quite frequently, the seller will sign in advance of the purchaser, since the seller’s documents only need to be signed BY the settlement date, but not necessarily ON the settlement date.
So even if you were not involved in selecting the title company, there are plenty of resources available on our website that will allow sellers’ to become informed and prepared closing.