Selling or Buying a Home from a Distance

It’s not unusual that properties are sold while the sellers are away…whether living somewhere else or away due to work or vacation. It’s less common but also happens that properties are bought from a distance. With the magic of technology it’s easier than ever to sell or buy a home remotely…I recently negotiated a transaction with the seller in Italy!

Sometimes the parties involved are so scattered that it looks somewhat like an airline route map pulling everything together! Reasons can vary, here are some of the most common reasons I have experienced long distance transactions…

• Seller has moved out of state due to a job or lifestyle relocation
• Buyer is relocating from out of state or country
• Senior has moved due to illness and/or to be closer to family
• Scattered heirs are selling estate property
• Banks are selling foreclosure property
• Sellers and/or buyers are temporarily gone for various reasons

Purchase agreements are easily negotiated long distance. Closings require more planning, but don’t worry…you won’t have to hop on a plane to be present when it comes time to close in Minnesota. Closings also frequently take place long distance.

When selling from a distance in Minnesota documents are overnighted back and forth to be signed and notarized prior to closing…advance planning is required. It is especially important that the Deed be signed by the owners of record. If they are incapable of signing you will need an original (not a copy) Power of Attorney document specifying the signer (Attorney in Fact) has full power for real estate transactions.

Plan to give someone who will be present at closing limited Power of Attorney to sign any small changes/additions that may arise at closing. Don’t worry, this Power of Attorney is very specific and limited to this pupose for this transaction only.

Closings with the seller not present are actually fairly common, not just when selling long distance. Sellers sometimes decide to pre-sign at a time and place that better fits their schedule and location. Most often this is due to work or travel schedules but there can be other good reasons to pre-sign as well. I once had a very pregnant couple pre-sign because they were afraid they might be in the hospital giving birth at closing time!

Buyers are usually present at closing…it’s exciting to leave with the keys to your new home! If you are a buyer and cannot be present at closing be sure to talk to your lender and/or closer in advance to make arrangements. Some mortgages require that buyers be present to sign the documents on closing day so you may have to do some rescheduling.