“I was at the closing table and casually remarked ‘You and your husband will be able to-’ and Layla cut me off to say ‘Husband? Ahmed is my brother,’’ recalls Alex Grundhoffer. “I was shocked to say the least – not because a brother and sister can’t buy a home together—but because their spouses were not on the mortgage and we were adding them to the title!”
“What had happened was that Ahmed and Layla, the brother and sister, wanted to go into title with their spouses and the purchase agreement just said their marital status was ‘married’. Having never met them, we did not question ‘to whom’. The agent never called it out because he thought it was easy enough to add Ahmed and Lyla’s spouses to the deed at closing. But that creates some insurability problems for us – all parties going into title need to sign the mortgage otherwise there could be issues down the road. Fortunately, everyone lived in the area, and they were able to fix the mortgage paperwork so we could continue closing.”
Avoid a Horror Story Closing
There are many things that could go wrong in a transaction – and we know it’s a lot to remember. Here are some questions to ask about the principals so that you can spot lurking issues before signing:
- Will all of the principals be available to sign, or will we be sending documents to another state/country? If so, where?
- Do all of the principals who will be signing have a current photo ID or driver’s license?
- Has there been a change in marital status of any of the vested owners, or the addition of anyone to title, i.e., cosigners, additional insured, etc.?
- Is the seller or buyer subject to spousal or child support payments?
- Have any of the principals recently filed for bankruptcy?
- Are any of the vested owners deceased or in any way incapacitated?
- Will any of the principals be using a Power of Attorney?
Don’t let a horror story ruin your closing, start working with your local Doma office today
