After Hours Cash Out Signings, Waivers

I have a client that needs a cash out signing (Texas) after hours (6pm) NO place is open or do not offer rooms for rent. Can that client sign a waiver, if initiated from the lender, to NOT sign at one of those offices? Thanks.

That would be something to take up with the lender and/or title - this stipulation is the law in TX - let them be the ones on the hook to decide if a waiver is possible.

1 Like

When it comes to Texas cash out closings neither the lender, Title Company, Borrower, signing service, or the NSA can wave the Article 16, Section 50 requirements to close in the offices of a lender, law office, or title company. if a notary doesn’t meet this constraint, the closing is void.

During the Refi peak we many notaries who were not adhering to the law. Now the the RE market is begining to sour, it’s possible we’ll see an increase of notaries in trouble with the law as lawyers work to stop foreclosures.

1 Like

an excerpt from The Texas Administrative Code Title 7, Part 8, Chapter 153, rule 153.15…
" (1) An equity loan must be closed at the permanent physical address of the office or branch office of the lender, attorney, or title company. The closing office must be a permanent physical address so that the closing occurs at an authorized physical location other than the homestead. The closing may occur in any area located at the permanent physical address of the lender, attorney, or title company (e.g., indoor office, parking lot)."
You do not need a waiver and you can do a contactless, curbside, parking lot closing as long as all parties involved are on board. https://NotaryNow2020.com/contactless-closing

Using the “address” is permissible but only if the law firm, lender, or title company grants permission for doing so. Otherwise this could be considered deceptive business practices which carries both civil and criminal culpability.

There were many Signing Services that “authorized” using the address of a law firm, Title Company, or lender when no such permission from the aforementioned entities. This voids the closings. In Austin there was a NSA who used the lobby of a Title Company to sign, after the TC had closed up for the day.

The statue you’ve cited doesn’t doesn’t define who the parties are, nor does it grant third parties the authority to decide to use a premise without the premise holders permission. There is a thin line that many Notaries and Signing Services have crossed.

One needs to know what Texas laws say on this topic. Doing something were not permitted to do can land the notary in the deep end of the legal system.

@kim.beck what about the requirement that the signers/borrowers are to get a copy of the signed documents. (Not blank, unsigned copies) at time of signing? I don’t see that addressed anywhere … And this certainly can’t be accomplished in the parking lot.

Personally, allowing them to be done in a parking lot totally defeats the whole purpose of “at physical location of lender, title company or attorney”

You stated in another post you sometimes have to pay $150 for location. I certainly hope you’re not paying that for a parking lot signing.