It may happen that you or your spouse must be out of town at the time
of your escrow closing. Perhaps you suddenly have to go out of the country
and you may be worried how you are going to close your escrow on time when
you can't physically be present for the closing. There are several solutions
to this problem.
The first solution and the one that has most often been used in the
past and is most widely accepted is the Power of Attorney form. This form
allows you to give the power of your signature to someone else who will sign
on your behalf. You may sign a Limited Power of Attorney, which would
pertain to a certain transaction, so you do not have to fear that someone
could sign you life away. The Power of Attorney form may also be General,
covering a broad range of topics. The Power of Attorney form should be
recorded at the County Recorder's office. When the person returns, he will
record a cancellation of the power at the recorder's office.
A second alternative to signing escrow instructions when you are out
of town, is the use of a signature sent by way of Fax. Some escrow and title
companies are allowing escrow instructions with fax copies of signatures,
with the understanding that the original signed copies will be supplied a few
days later. The escrow holder allowing a faxed signature will include a
statement which will state that “in the event the buyer, seller, agent and/or
assigns utilize facsimile instructions, the escrow holder is instructed to
rely and act upon such instructions, in the same manner as if the original
signed instructions and/or amendments were in the possession of the escrow
holder and the buyer and or seller agree to forward signed hard copies of
instructions, and/or amendments within 48 hours ( or other specified time )
of transmission. The Escrow holder will take no responsibility or liability
for any party who relies upon facsimile instructions which were erroneously
transmitted to the escrow holder.”
Many escrow companies do not like to rely on a fax copy of signatures, as
the opportunity to forge a signature is easily done. The escrow companies may
use the Fax system to gather required information, such as payoff and credit
information, but they prefer to close escrow on live signatures, or with a
Power of Attorney authorization.
Related Articles:
What Title Insurance Will Do for You
Dealing With Clouds On Your Title
Coverage And Types Of Title Insurance Policies
Escrow Impound Accounts: Do You Have a Choice?
Published: July 9, 1999
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