The real estate industry has been working relentlessly during the COVID-19 pandemic to facilitate real estate transactions. Thanks to several policies led by title companies, financial institutions, and local governments, as well as real estate services’ designation as an essential business, real estate closings have continued without interruption.
Updates to Closing Procedures
Although some title insurance offices have been forced to temporarily close some locations, changes to the traditional closing services have been implemented by many title insurance companies. Closing offices will only allow purchasers and their lawyers to be present on closing day. Several companies are even offering “curbside closings” for financed transactions, allowing buyers to remain in their vehicle while signing the required documents.
Closing documents are being sent to all parties well in advance of the closing date allowing lawyers to adequately prepare clients without ever having to physically meet. Lavelle Law, Ltd. has long been able to connect with clients via teleconference and will continue to offer this service throughout the current pandemic.
Cash transactions may be closed electronically via e-mail and electronic signature technology. These new procedures allow the seller’s lawyer to submit all required documents to the title company prior to the closing and eliminate the need for anyone from the seller’s team to be present during the closing. The title insurance industry acted quickly in implementing these procedures to ensure a lower amount of unnecessary physical contact between all parties.
As always, a purchaser may assign power of lawyer if the purchaser is unable able to attend the closing in any capacity. The power of lawyer must be approved by both the title company and lender, if applicable, prior to closing.
The title companies may add additional requirements and exceptions to account for gap periods, unavailable transfer stamps, tax sales and other specific circumstances. It is important that lawyers submit requests and questions to the title company in a timely matter to prevent any delays.
Government Response
County recorder’s offices have also adapted their policies. Despite the understandable delay in recording time, Cook County is still able to e-record deeds, mortgages and modifications. Other counties are also accepting e-recordings and/or allowing parties to schedule an appointment to record documents in person. Each recorder’s office may update its policy at any time, so make sure to call your county’s office to confirm availability if you need to record any documents in person.
Issues to Consider
Even with all the innovations and timely alterations to traditional practices, the real estate industry is experiencing some inevitable negative repercussions of the pandemic. property owners that remove homes from the market, tenants that refuse to allow showings, and general uncertainty all create new challenges. Loan applicants may lose their job and the underwriting process may experience delays to further complicate transactions.
