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The use of a POA in your real estate closing should not be your FIRST CHOICE

By
Title Insurance with Key Title Corporation 63078

The use of a POA in your real estate closing should not be your FIRST CHOICE

I am doing a transaction on a property in Maryland with a purchase price of $550K and a loan amount of $440K. The buyers, husband and wife, cannot both be in town at the same time. The wife asked if we could do a POA

I told her that as long as the lender approved the use of a POA we could have one prepared for her, send it to her with instruction for execution and notarization, etc.  The bank agreed to the use of the POA, and then.....

The wife advised that she wanted to appoint her real estate agent.  I have never believed that to be a good idea and suggested that she go ahead and appoint her husband as her attorney in fact. 

She ultimately agreed to this and then.....

She wanted me to MAIL the entire closing package to her husband for execution and notarization and have him return the executed closing package to me.

After much discussion (some of which became heated) I advised that I did not feel it to be in her best interest or that of the lender to do a mail away closing on the purchase of their home, and particularly since I am willing to meet with the husband to do the settlement transaction in a place convenient to him.  Her response was that she has always done mail away closings and has never had a problem.

While this couple may have never seen a problem with a mail away closing, I could probably write a small book on the issues I have encountered as a result of mail away closings, the use of POA'a etc.

I cannot for the life of me figure out why this couple doesn't want a face to face with at least one of them in attendance, given that they are getting ready to obligate themselves to a huge debt. 

I have heard claims from past clients who wanted to do "mail away closings"; their employer won't let them leave work an hour early, they don't want to spend time on the road, and on and on.  I have never caved on this issue.  If I am going to insure this transaction, I dang well want to at least be in attendance at the closing. 

Any thoughts? 

Posted by

Charlene Perry
Key Title, Inc. 
35 Fulford Avenue
Bel Air, MD 20104
410-803-4800