Real Estate Contract Names

WHAT IS THE IMPORTANCE OF A NAME?

 

To assist with avoiding delays with closings, consideration should be given for consistency of name spelling and vesting choices for the real estate transaction.

A buyer changes the way they want to take title to the property-this can result in the need for a last minute addendum, a new title search of the name change (liens in the Buyer’s name can attach to the property as well as compliance with the Patriot Act), a short sale being postponed if the approval was for a different name variation such as an individual verses a Trust.

A misspelled name –can cause issues for the Buyer upon a resale or refinance of the property. It can also cause issues for any loan documents in conjunction with the purchase of the property. Contracts that have been faxed may cause errors due to lack of legibility which can offend clients.

Uniformity of names-use proper legal names to avoid inconsistency with Robert verses “Bob”, use of middle initials to be consistent with loan documentation assures smooth closings without the need for aka’s or “also known as” and dual signatures required.

Note: No legal advice or suggestions are being given as to the preferred or recommended way to handle. Please call us if you have any questions on the above matter.