If you’re selling a home, you might wonder, can sellers sign documents early? In many cases, the answer is yes. This can be helpful if you’re relocating out of town, have scheduling conflicts on the closing date, or simply want to streamline the process so funds are released sooner once the buyer signs. However, your ability to sign early depends on factors like state laws, the title company, and the buyer’s schedule.
Whether you’re selling a home in Seattle, WA, Austin, TX, or Miami, FL, this Redfin guide will walk you through everything sellers need to know about signing documents early, why you might want to, and what it means for your closing timeline.
Why sellers might want to sign documents early
Closing day can often feel hectic, with stacks of paperwork to review and limited time to manage it all. To simplify the process, many sellers choose to pre-sign their closing documents ahead of time. Doing so helps prevent last-minute delays if you can’t attend the in-person appointment and ensures a smoother, less stressful closing experience.
Pre-signing is often about flexibility. Sellers may prefer it if:
- They’re traveling during the scheduled closing date.
- They’re relocating to another city or state.
- Moving-day logistics make it difficult to attend.
What documents can sellers sign early?
Pre-signing closing documents offers convenience, but not all can be signed in advance. Some require execution on the actual closing day for legal validity and to reflect current information. However, many common seller documents can typically be pre-signed.
- The deed: Transfers ownership of the property to the buyer once the transaction closes.
- Settlement statement (or closing disclosure): Outlines the financial details of the sale, including proceeds and closing costs.
- Payoff authorizations: Allow the title company to obtain the final mortgage payoff amount directly from the lender.
- Affidavits and declarations: Such as non-foreign status affidavits, property disclosure updates, or statements verifying there are no outstanding liens.
- Tax and HOA documents: Any forms needed to confirm payment of property taxes or homeowners association dues.
Legal, logistical and practical considerations for sellers
Pre-signing documents saves time but involves complexities. State laws, lender rules, and potential last-minute changes impact its validity. Sellers risk re-signing corrected documents or needing a power of attorney if absent.
- State laws and practices: Some states don’t allow pre-signing, or only for certain documents.
- Document readiness: Paperwork may be delayed due to lender conditions, title issues, or late adjustments.
- Handling changes after signing: Corrections usually require re-execution, but escrow/title officers manage this process.
- Risks: Backdating concerns, fraud, or the buyer’s financing falling through.
- Use of Power of Attorney (POA): An alternative if you can’t attend, but it must be carefully drafted and limited to avoid abuse.
>> Read: 3 Tips for Using Power of Attorney for a Real Estate Closing
Step-by-step process to pre-sign
Pre-signing is straightforward, but it works best when you line up timing and paperwork in advance.
- Check with your title/escrow company: Ask when documents will be ready for early signing.
- Schedule your appointment: This may take place at the title office, your broker’s office, or with a notary.
- Bring the right items: Government-issued ID, lien waivers, receipts for repairs, and payoff statements.
- Execution: You’ll walk through the documents, sign, and acknowledge that minor corrections may be made later if needed.
State-by-state variations for pre-signing
Pre-signing rules can vary depending on where your property is located. Each state follows its own real estate customs and document requirements, which can affect when and how you’re allowed to sign early.
1. Who typically conducts closings
- Attorney states such as Connecticut, Georgia, Massachusetts, New York, North Carolina, South Carolina, Vermont often require or strongly prefer attorney involvement at closing. If you can’t attend in person, your attorney or a limited power of attorney may need to sign on your behalf.
- Escrow/title states such as Arizona, California, Colorado, Nevada, Oregon, Washington typically have a title or escrow company handle the closing. Pre-signing is common and can often be done via a mobile notary or mail-away package, subject to lender approval.
2. States that require witnesses on deeds
Some states (CT, FL, GA, LA, SC) require witnesses in addition to a notary for deeds or mortgage documents. If pre-signing, ensure witnesses are present so the deed can be recorded correctly.
3. Remote Online Notarization (RON) availability
Many states permit Remote Online Notarization (RON) for virtual document signing. However, confirm with your title company or lender if they accept RON for your transaction.
Pros and cons of signing documents early as a seller
If you’re thinking about pre-signing your closing documents, it’s important to understand both the benefits and potential drawbacks before making a decision. Here’s what sellers should consider before moving forward.
Pros of signing documents early:
- More flexibility in scheduling and moving logistics
- Faster funding once the buyer signs
- No need to appear on moving day
Cons of signing documents early:
- You may need to re-sign if documents change
- Not all lenders or escrow officers approve pre-signing
- Risk of last-minute surprises, like title issues or unresolved repairs
Best practices for sellers considering pre-signing
After considering the pros and cons, you may decide that pre-signing is the best option for your situation, and a little preparation can make all the difference. The key is to protect yourself from errors, miscommunication, or last-minute surprises while still enjoying the convenience of signing in advance.
- Start early: Inquire with your Redfin agent and title/escrow officer about pre-signing early to allow for document preparation and to identify limitations.
- Confirm with all parties: Early signing requires approval from the buyer, lender, and title company.
- Review draft documents in advance: Request paperwork in advance to review for errors, understand terms, and ask questions.
- Pre-sign only “clean” documents: Don’t sign forms, like settlement statements, that are subject to change. Only sign finalized documents.
- Document your understanding: Minor corrections are permitted, but substantive changes need your re-signature.
- Work with reputable professionals: Experienced title and escrow companies can properly handle pre-signing and protect your interests.
- If using POA: If unavailable, grant power of attorney to a trusted individual, ensuring it meets lender and state requirements.
A seller’s pre-sign checklist
Pre-signing can be a helpful option for sellers who need flexibility on closing day, but it’s important to approach it carefully. By planning ahead, communicating with your agent, title company, and buyer, and reviewing every document before signing, you can enjoy a smooth, stress-free closing while minimizing the risk of mistakes or delays.
FAQs: Can sellers sign documents early?
1. Does pre-signing transfer ownership early?
No. Ownership only transfers once all parties have signed and funds are officially disbursed at closing. Pre-signing simply places your paperwork on file until the buyer completes their side.
2. What happens if the buyer doesn’t sign or financing fails?
The sale won’t close, and your pre-signed documents become void. Nothing is recorded or finalized until the buyer’s financing is complete and the transaction is fully funded.
>> Read: What Can Go Wrong at Closing?
3. Can you refuse to pre-sign even if the buyer requests it?
Yes. Pre-signing is optional and must be acceptable to the seller, lender, and title company. If you’re not comfortable, you can wait until the scheduled closing date.
4. Who pays if there’s a clerical error discovered later?
The title or escrow company is typically responsible for fixing clerical mistakes. You may need to re-sign corrected documents, but you aren’t financially liable for their errors.
5. What documents are not safe to pre-sign?
Anything likely to change at the last minute should be signed only at closing. This includes the final settlement statement, payoff amounts, or documents tied to variable costs.