Closing on a Home for Sellers

I’m certainly not going to pretend to be an expert on all things regarding legal notary services around the globe. It only came to my attention a few years ago that it might not be as easy to process real estate paperwork everywhere as it is here! 

In the United States of America, many legal documents need to be notarized. For most of us, in our industry, that means every title closer you know can do this for you, and they perform all of our closings. Most title closers are a public notary and provide notary services. If you live in another state and are closing on a property here, sometimes that means walking into your local bank or just finding a local notary service in your area to certify your signature on your legal documents.

Notary Services Abroad

Well, such is not the case around the globe. I had a client moving from a civilian job with the USA working in Saudia Arabia. As they began the search, they of course came here to look at homes. With electronic software, the contract, inspection, amendments, etc. were fairly easy to execute halfway around the world. But when it came to closing time, we discovered they had to have docs sent to them, then notarized and returned. Easy-peasy, right? Nope! First of all, the title companies here require an American notary. So they had to find one… at the US Embassy… and pay $50/page to have it notarized. The title company was so helpful and kept to a minimum the actual documents that needed notary. It was complicated, but accomplished.

Second example, I took a recent continuing education class in which the instructor shared an example of a client that lived in Australia and was selling a property in Colorado. Well, in Australia, to get something notarized you have to go before a judge. Wow, that’s complicated!! So the Colorado seller, living in Australia came to the US at some point during their transaction (not Colorado) to visit family. The title company sent documents to them while in the USA, so they could find a US notary and remove some complications! 

I have a client now, living in Prague, getting ready to sell their property here in Colorado Springs. I asked her to get started in the process of what it takes to notarize documents there, so we would be ready when the time comes. Their home here will of course sell in probably less than a week and close in under 2 months. If they are stateside at any time in the next 3 months, we’ll certainly try to get any possible documents to them, especially if we are already under contract.

The internet and social media has shrunk the world in many ways. Legal services such as notarizing documents might be easy here, but much more complicated in other countries. Sometimes we need to be reminded how easy we have it… what a great country this is!!! 

When purchasing a home, personal checks are not accepted at the closing table.  “Good Funds” as our contracts call money due at closing, will need to be either a cashier’s check or wire transfer. A cashier’s check is simple to obtain. Usually you can purchase one at your bank. These work well when you have a down payment to bring.

BUT be aware! There are limitations as to how large a cashier’s check can be.  Example, if you are a cash buyer and need to bring a sizeable amount to closing, the title company will probably require you not bring the whole amount in the form of a cashier’s check. I recently had a closing where this very thing happened. The title Company conducting closing would not allow the buyer to bring a large cashier’s check for his purchase. He had to wire money in advance or we couldn’t close.

Wire transfers are pretty simple.  You go to your bank and give them the title company’s wiring instructions. Your bank will then send the wire for you. But, wire transfers do take some time to show up.  All wire transfers have to go through the Federal Reserve Bank which is located on the East coast.  So wires can take a few hours to route correctly.  And if you send a wire in the later part of the day, keep in mind that it may not show up until the following business day.  East Coast hours do apply and the cut-off time is 3pm East Coast time.

On the other hand, earnest money deposits (up-front monies) can usually be in the form of a personal check.   Money stuff is always complicated.  One of the many reasons you hire a Realtor, so you don’t have to figure all this stuff out for yourself! If you want to learn more, check out our finance videos for Buyers or simply give me a call!