Who signs the sales contract?
This is Deirdre Brown you settlement agent serving the District of Columbia, Maryland, and Virginia. Today I want to answer a question that I often receive from Realtors in regards to whom should sign the sales contract when only one spouse is on the loan. A Realtor said that she represents the buyers on a purchase transaction. The buyers are a husband and wife. The husband is the only one going on the loan, however, the wife is going on the title. The agent wanted to know two things.
One, does the wife need to sign the sales contract and two does the wife need to show up for settlement. The answer to both questions is yes. The wife will be on title and therefore is a party to the contract so she needs to sign the sales contract and all the addendums. She will need to come to the settlement because there will be documents that she will need to sign. She will need to sign the deed of trust, the closing disclosure statement, the ALTA, and a few affidavits. If for some reason the wife cannot attend settlement the husband can sign via a power attorney on her behalf. However, you will need lender approval and the power attorney will need to be reviewed by the title company for compliance. Please reach out to your title company and your lender very early on in the process if you think the buyers will need a Power of Attorney.
If you have more title-related questions please reach out to us at lexicontitle.com.