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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