Oct 27, 2009

Tip 27-2009: Contracts and Correct Addresses

Lenders and their underwriters are getting extremely careful in the review of everything. Recently we have experienced problems with the address in the contract not being correct. In one case, the lender recalled the loan proceeds check after all the papers had been signed by the borrower and the deed and check had been exchanged. Fortunately, the deed was not recorded so the funds were able to be returned to the lender. (Several days later the closing was redone after a contract amendment was executed with the correct address). Accordingly, everyone in the signing process (the realtor, lender and settlement attorney) should verify that the correct address is on all documents.

PS: The same review as to the parties correct names should be performed so that all documents have the same name including first and middle initials, Jr., III, etc.

Please contact me if you have any questions.

William D. Tucker, III
Tucker Griffin Barnes P.C.
Charlottesville, Virginia

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