What you need to know about pre-signing your closing documents

At a real estate closing, these days the buyers and sellers often sit in different rooms, usually with their own Realtor,  and the paperwork for the transaction makes its way from one room to the other, allowing all parties to sign the necessary documents to execute the sale.

When the buyer is using a mortgage to pay for the property, they have a LOT more paperwork to sign, much of it relating to their new loan.  The seller must patiently wait in the other room for the buyer to have all the extra documents explained to them, have their questions answered, and to sign everything.  Furthermore, the closing is usually at a location and time selected by the buyer or their lender, so basically nothing about the closing (except hopefully getting a nice sum of money at the end of it) is very fun or convenient.  Today’s article will be short.  We are going to talk about pre-signing as a seller and we’ll cover:

• How to set up a pre-signing
• What to expect/what to bring
• Dealing with errors or minor changes
• Handling logistics like keys and lockboxes

Here we go!

How to set up a pre-signing

If you’re selling your home your Realtor may ask you if you’d like to pre-sign the closing documents.  This means you’ll get together with the title company, sign the closing documents a few days before the closing, and be on your way.  You won’t have to be present at the actual closing and can schedule the pre-signing at your convenience, so you may be less likely to need to take time off of work or re-arrange other commitments.

If you’re interested in arranging a pre-signing, you’ll first need to be sure that your title company has  ample time to prepare the closing disclosures (more on closing disclosures in another article) and present them to both sides of the transactions to review.  There are some cases where these documents aren’t available until a couple of days prior to closing, so your opportunity to arrange a pre-sign may be limited.  Have your Realtor check with the title companies to find out the earliest date a pre-sign can be arranged.

Once you have a date, a time and place will need to be locked in.  Pre-signings will usually happen either at your title company’s office or at your real estate brokerage’s office.  Some larger companies have multiple offices in your area, and so may be able to schedule a time at one of their offices nearest to you, for your convenience.  The title company employees who handle pre-signs and closings are generally only available Monday through Friday from approximately 8am to 4:30pm, so you’ll need to find a time slot that works for you within those hours.  The earlier you and your Realtor have this discussion, the more likely your first choice for time slots will be available, so it’s a good idea to plan ahead.

What to expect at the pre-signing

When you get to the pre-signing, your Realtor will be there if at all possible (this may be their last chance to see you before the transaction closes!), although they will have very little actual role to play in the pre-signing itself.

A representative from the title company will ask you for photo ID (it’s very important that you don’t forget to bring your ID) and will make photocopies of your ID for the closing file.   It’s also important that if there are receipts or lien waivers for work done on the property within the last 6 months you should bring copies of them along with you unless you have already provided them to your Realtor at an earlier date.

Once the ID is copied, and receipts and lien waivers are collected, the title company representative will walk you through all of the paperwork you need to sign, taking care to explain the documents and answer your questions.  The typical pre-signing can be completed in just 15 or 20 minutes.  (Compared to the average closing which can last up to an hour).

Dealing with changes or errors

It’s worth noting here that during the pre-signing, you’ll be presented with a document stating that if there are any MINOR clerical errors or MINOR changes needed to any of the documents, that you agree to cooperate with the title company to fix those discrepancies promptly.  Pre-signing the documents ahead of time means that things can still happen before the buyer signs their own documents and adjustments need to be made.  The title company will reach out to you directly to let you know if they need you help with any minor changes.

Logistical matters

Your Realtor will be responsible for making sure that the keys get to the closing so the buyers can get access to the property once they become the new owners.  This may be as simple as making arrangements with the buyer’s agent to remove the keys from the property after the final walk-through and bring them to closing.  The lockbox will also be removed at the time of the final walk-through and your agent will make arrangements to get it from the buyers agent.

Your Realtor will answer any questions you may have about moving out, cleaning, final walk-through, receiving your proceeds after closing, etc.  You should always feel comfortable to ask as many questions as you need to so you have a clear understanding of how things will work moving forward.  Nobody likes surprises when it comes to real estate!

Of course from a seller’s perspective the most important thing thing we need to address is how you will receive the proceeds from the sale of the property after the closing is complete.  You will have a choice between receiving a check (through the mail or possibly picking it up in person) or being paid through a wire transfer (much more convenient but usually will include a small fee of $50 or so.  If you haven’t provided this information to the title company in advance, you will want to tell them your preference at the pre-signing, along with any necessary information like your new mailing address or your bank’s routing number.

A final thought (bonus)

Some sellers regret the opportunity to meet the people who are buying their home, and it’s certainly understandable.  After weeks of doing business with someone, it is often nice to put a face to the name, and to get the good feelings that come from handing the keys to someone you meet face to face.  Of course, many sellers still prefer to go to closings for this exact reason.  If it’s not convenient or possible, however, there are other ways to connect or show a gesture of goodwill to the new owners of your home.  Writing a note to them along with a small gift or some flowers on the kitchen counter is a nice expression of gratitude.  Many buyers also really appreciate a list of your favorite local restaurants, take-out or delivery establishments, along with schedules for the garbage and recycling pickup, leaf removal etc.   Anything that you can share with the new owners that will make their transition into your new home will undoubtedly be appreciated.

Other ideas include:

• Providing keys labeled and organized so they don’t have to spend hours figuring out what opens what
• Organizing any paint cans you are leaving behind and labeling them by which room they are for
• Leaving behind instructional manuals for appliances and any other items being left behind
• Providing a list of service providers who have done work on the home in recent years.  If you’ve had a plumber to the house to fix a leak, and were happy with the plumber’s work, that is certainly valuable information.

Pre-signing your closing documents can be a very convenient and easy way to handle the sale of your home and we hope you learned all the little details that make a pre-signing work.

Do you have any questions about pre-signing?  We’d love to hear from you!