“No big deal, I just want to add my grandma to title when we close so in case I die…”
A wonderful gesture and good practice for many of us.
In the old days, the escrow officer would simply prepare the grant deed and other paperwork adding the second party to the, well…party!
Ah, but things have changed now. We worry about add-on buyers who have never looked at the purchase contract, disclosure and reports. Suddenly, after close they become the decision makers for the property and are not happy with the condition it was sold in and go after the seller and agents for non-disclosure. Could it happen? Anything is possible! Where is the compelling evidence that the additional buyer was being added for title purposes only? Did you write an addendum clarifying this?
The California Association has created an Assignment of Agreement Addendum that clearly states add-on buyers must sign the contracts, disclosures a reports (no signing a blanket statement that they have received all documents).
How will this impact you?
First, a second round of signature requests must take place, additional auditing and if your broker has a document platform like Skyslope, re-submitting docs into the system. A tremendous amount of time is used to complete this seemingly simple request especially if the disclosure package is large!
Second, even with the second buyer signing all documents, there may be risk that the add-on buyer could go after you.
Third, some lenders may not allow an additional buyer be added to the party. You’ll need to check before implementing.
What’s the easiest method to add another party to title? Complete it AFTER close of escrow. The escrow officer can help set it up for the buyer.
Looking for an experienced Transaction Coordinator that can help with your transactions? We know our stuff! Contact Diana Turnbloom today!