Common Post-Closing Title Update Problems & How to Avoid Them
Our super-human title post-closing updaters continue to spot issues requiring correction. Many mistakes could have easily been avoided. We know things have never been busier – or more complicated - and we thank you for your continued commitment to your clients and to VATC. We are committed to you, too! In that effort, we share some common issues as well as some easy ways to correct the issues on the “front end” (also known as the lower-cost end)! Slowing down now, even, for a nanosecond, will save a ton of time later!
1. Powers of Attorney acknowledged with a Notary’s scrawl signature only. This does not comply with the Notary statute so, if the name is not legibly written or there is no printed or commission number, we reject the Notarial Certificate. From there, a Notary Affidavit must be obtained. SOLUTION: Review both the buyers' and the sellers' POAs before recording. If the notary's name is not legible (or not printed) and there is commission number, the issue should be cured prior to recording.
2. Lender conducted closings using Remote Ink Notarization (RIN). In refinance situations lenders often conduct their own closings. Some lenders fail to use the VBA/VATC approved Remote Notarial Certificate. Since that Certificate contains many statements affirming that the remote notarization was conducted pursuant to Emergency Rule, it must be used. SOLUTION: If you know lenders that are conducting their own refi closings, contact them, instruct them to use the VBA/VATC approved Certificate and provide them with a copy. You'll be a hereo! If you need the Certificate, please email Andy or Liz.
3. Borrower is Trustee of a Trust. Some mortgages require the signature of Trustee(s) in two capacities, to wit: as trustee(s) and individually. Post-closing updates find a recorded Delegation of Authority but no POA. The problem is that the Delegation does not provide the delegatee with authority to sign for the trustees as individuals - a POA was also required! SOLUTION: Where trustees will not be at closing, examine the mortgage carefully. If it requires that the trustee(s) sign in two different capacities then you will need a Delegation of Authority AND a Power of Attorney.