Home Sales, Sick Parties, and Solutions

We’ve fielded numerous calls from Realtors asking: What can I do if my client is sick and can’t come to closing?

The answer depends upon whether the party is the buyer or seller and whether the parties planned ahead.

Sick Sellers

Many title companies can accommodate the seller with an e-closing using a Remote Online Notary (RON). Homestead has conducted a large number of Seller e-closings (some sick and some practicing social distancing). Sellers need a computer with Google Chrome or Firefox, a webcam and microphone, and a decent internet connection.

In additions to an e-closing, some sellers may be able to pre-sign documents and have an attorney they know “authenticate” their signatures.  In rare cases, our attorney will authenticate their signature if he is either familiar with them from past transactions or has  had a video conference signing along with another party familiar with the seller.

If e-closing is not an option, the Seller may be able to use a Power of Attorney (See Below).

Sick Buyers

Sick Buyers can present a bigger challenge.  Lenders are not yet ready to allow fully digital closings and we generally need in-person, ink signatures. The big exception: Cash Buyers can sign remotely without needing a digital notary.  The vast majority of buyers have financing and will need another option.

• Power of Attorney:  This option works best when the POA is already in place.  It is not ideal when first addressed with a sick party because it may require that they visit a notary in person. POA’s present a few issues:
  • Visiting a Notary: Some real estate professionals have recommended that sick Buyers have the POA notarized at a Bank drive-through.  This seems unfair to the bank employees and socially irresponsible.
  • Authentication by an Attorney:  A safer option is to ask if the Buyer has an attorney who can “authenticate” their signature without the Buyer being physically present. We may be able to accept a scanned copy of the authenticated signatures along with a mailed original at a later date.
  • Remote On-line Notary: A third option is to see if the lender will accept a digital, RON notary for the Power of Attorney. This is a long shot but worth a try.
  • HEALTH WARNING:  We are very cautious about working with a power of attorney appointed by someone known to have Covid-19. Most people appoint someone they know well and we need assurances that the Signing Agent has not been in contact with the sick person in the last 14 days.
• Delay:  If the parties have not contemplated a delay, they will need an Amendment to allow for an extension of time to close.  Many parties have planned ahead and included extension terms in their offer.  The Wisconsin Realtors Association (WRA) released Addendum CV to address Covid-19 related issues. The Addendum allows for extensions of time if a delay is caused by:
  • Office closures such as banks, title companies, register of deeds, appraisers, etc. or
  • Sickness, isolation, or quarantine by any party.

Please let us know of any sick party as early as possible.  Homestead will work with you to find safe, healthy, and proactive solutions.

Planning Ahead

The best plan is one that is already in place. Parties should discuss the benefits and drawbacks of Addendum CV with their Realtors or attorneys.  In addition, parties may consider appointing a power of attorney (who does not live in their household) in case they are unable to attend closing.

Finally, planning for health challenges is something everyone (not just Buyers and Sellers) should consider, especially in times of uncertainty. It is wise to have a will, power of attorney, and power of attorney for health care. A power of attorney for a real estate transaction only allows someone to sign closing documents. A power of attorney for health care is far more important. It allows your agent (a loved one) to make critical health care decisions that are consistent with your wishes in the event that you are unconscious or incapacitated.

Homestead Title can draft a general Power of Attorney.  We cannot advise you on wills or drafting a Power of Attorney for Health Care. Attorney Peter Zarov, however, can consult with you about these needs to provide assistance or referrals.

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Homestead’s Coronavirus Response: We are Here to Help Buyers and Sellers.

Homestead Title has implemented a plan to maintain day-to-day operations in response to the Coronavirus (COVID-19) pandemic.

Homestead will continue normal operations, without disruption, during these challenging times. We do not anticipate any delays or cancellations as a result of temporary changes to our business. The majority of Homestead’s team will work remotely from home over the coming weeks. Phone and Email will operate as normal and we are available to help.

Closing officers will be available in our office for any scheduled sale or refinance. We will operate with minimal, in-office staff and appreciate your patience and understanding.

We are committed to supporting and serving our employees, their families, and all those involved in our real estate and title insurance transactions.  As we monitor developments and guidance from public health professionals, we will make any necessary adjustments.

Tips for a Healthy Real Estate Closing:

1. Only Signors in the Closing Room: Homestead will not allow anyone in the closing room other than necessary signors (Buyers, Sellers, and their attorneys).  We urge Lenders and Realtors not attend closing and will ask them to wait in our outside lobby.
   1. We will include Realtors and Lenders on all questions by phone.
   2. We will overnight commission checks at no cost to the Realtor or their broker.
2. Sign Separately and Social Distancing: We encourage Buyers and sellers to sign at different times.  We are waiving Seller pre-sign fees until at least June 1, 2020.  Alternatively, we encourage Buyers to arrive on time and Sellers to arrive 35 minutes after the start of closing.  This will allow for minimal contact and more “social distancing.”
3. Remote or Digital Closings: When possible, Homestead will offer remote or digital closings.  Remote notarization is not yet legal in Wisconsin, so fully digital closings are rarely an option other than for cash purchasers. We will explore all options to accommodate our customers and protect the well-being of our community.
4. Clean Office Space:  We are providing clean pens and separate paperwork to minimize contact between people. We are wiping down all surfaces with disinfectant wipe throughout the day.
5. When to Avoid Closing: If any Buyer or Seller is sick,  in contact with anyone diagnosed or suspected of having Covid-19, or has traveled internationally in the last 14 days, please contact us for alternative closing options
6. Celebrate: We are excited to help you buy, sell and refinance. Yet, we will be refraining from hand shakes, high fives, and other close celebrations.  These are scary times, but together we can do this!

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