Non-Traditional Sellers

Non-Traditional Sellers

In this video Deirdre P Brown explains documents needed when the seller is a non-traditional seller.

TRANSCRIPT

Hello this is Deirdre Brown your settlement agents serving Maryland, DC and Virginia. Today we're going to talk about if this then what.  If your seller is a non-traditional seller what documents does your title company need.

If your seller is an estate we will need the Letters of Administration or some type of court order showing that who the personal representative is or the person who is authorized to sell the property.

If your seller is has a guardian or conservator we would need the guardianship letter or letter of conservatorship in order to see who once again has the authority to act on behalf of the seller.

If your seller is using a trust to transfer title we're going to need the trust documents. Some title companies will tell you that they only need the parts that pertain to the sell of the real property.  I like to get the entire trust document. All 100-plus pages so that way we can pull out exactly what we need and we don't need to come back to you to ask for additional pages. 

If you know that your sellers are going through a divorce or a separation then please ask them for a copy of the separation agreement  or divorce decree. We need to know how the proceeds should be distributed.

If your seller is an entity, a corporation or LLC,  we're going to need their corporation or LLC Docs. The articles of incorporation and/or their organizations. We looking to see who are the members or who are the officers who have authority to sell the property for the LLC or the corporation. We're also going to need a Certificate of Good Standing from the state. This Certificate of Good Standing  needs to have been issued in less than 60 days before settlement. If the seller has one that is  three months ago or four months ago we're going to need them to get a new one.

if your seller is going to use a 1031 exchange. That's great you just need to let us know and tell us who is going to be the intermediary so we can coordinate settlement with them.

If you know that your seller one or both are not going to be able to attend settlement, maybe they move out of the area. Let us know right away so we can prepare what's called a power of attorney. This is where they appoint someone else to come to settlement on their behalf and sign the documents. 

If  you know that your seller is a foreign national. The seller is  not a US citizen.  You also need to let us know because there are additional documentation and tax withholdings. If you want more information on that please look for my video on FIRPTA.

If this is a Maryland transaction and your seller lives out of state,  in DC or Virginia or anywhere that is not Maryland,  we will also need to take additional withholdings. If you want more information on that please look for my video about Maryland Non Resident Withholdings.

Thank you for watching. closewithdee.com

DC Tax Abatement

DC Tax Abatement

FIRPTA - Foreign Investment in Real Property Tax Act

FIRPTA - Foreign Investment in Real Property Tax Act