Hi, Does anyone have any definitive work arounds for completing refinances and mortgage signings which require issuance of a title insurance, without an attorney present. CT General Statute - **Sec. 51-88a states “real estate closing” means a closing for (1) a mortgage loan transaction, other than a home equity line of credit transaction or any other loan transaction that does not involve the issuance of a lender’s or mortgagee’s policy of title insurance in connection with such transaction, to be secured by real property in this state, or (2) any transaction wherein consideration is paid by a party to such transaction to effectuate a change in the ownership of real property in this state” basically stating if it involves a change in ownership or the issuance of title insurance you can’t complete the transaction without an attorney present because it would be considered practicing law.
But, Statute Sec. 49-6d. Mortgages states:
Legal representation. (a) Each creditor shall notify a consumer debtor in writing when a mortgage loan application is filed that such debtor:
(1) May have legal interests that differ from the creditor’s;
(2) May not be required by the creditor to be represented by the creditor’s attorney;
(3) May waive the right to be represented by an attorney;
(4) May direct any complaints concerning violations of this section to the Department of Banking.
(b) The notice shall be written in plain language and shall be signed by the consumer debtor to acknowledge its receipt.
So, I comprehend this to mean a consumer may waive their right to be represented by an attorney.
My question is, has anyone in CT used, requested inclusion of or created a waiver of attorney presentation notice for signers to sign in order to complete a refinance mortgage? Should I tell the signing service to include something like this in order to complete signings or just produce something of my own after verbally confirming with signer that they are waiving their right to attorney representation prior to time of signing. Or can anyone offer suggestions on the best way to implement something like this in order to complete refinance signings? I’ve turned down a few jobs after recieving an initial request which I later declined due to them not being forthcorming about the type of signing. Additionally the state secretary has not been helpful on advisement other than restating the statute. I might need to seek legal counsel but taking any suggestions, as just that, a suggestion and not legal advice. Thank you in advance.
No - the second statute you cited (and thank you for doing that) is related to the “creditor” - the lender. Not the consumer, who is the debtor.
Have been out of CT for 18 years now and back then there always WAS an attorney involved simply because of the title insurance requirements (even HELOCs required insurance citing their second lien position).
Based on your citations I would say no, there is no workaround for the debtor/consumer - the waiver of attorney is the creditor/lender’s privilege.
Okay, thank you for your feedback and clarification. The 2nd statue requires the lender/ creditor to notify the debtor/ signer of their rights. So, should I simply accept the assignment based on the contigency that the signer will have an attorney present? I did see in one of the packages sent to me (which I declined), a signer acknowledgement notice of the second statute. How can I document this waiver of representation to cover myself if the signer waives their right to be represented by an attorney. Or in general how do I go about completing these signings in this state. As far as I can tell, I’d need to tell have the signing company confirm in advance but then risk losing the assignement for asking to many questions, which is okay because money is not worth a felony. Or do I accept the assignment and then confirm with the signer and if they haven’t acquired an attorney, decline?
Got it. So what is the best way to approach these signings? Ensure that signer will have an attorney present is what it is sounding like. But do I accept the signing and then confirm and then decline if they aren’t able to acquire an attorney?
I doubt that will work. From what I ‘think/understand’ about this (from a friend who used to do this in CT before they changed or cracked down on the law–who also worked FT for a lawyer), LAWYERS WANT THIS BUSINESS FOR THEMSELVES and are hired by Lender or TC (not sure which, but not the Borrower). She said the lawyers who do signings very aggressively go after non-lawyers and create a world of hurt for them. Lawyers can and do charge a whole lot more than they pay notaries. You might find a lawyer/friend who likes the money, but hates the work who might be willing to ‘partner’ with you and ‘share’ his/her fee. I doubt it, tho’ and, more importantly, am not sure even this would be acceptable to Lender, TC, other lawyers. It’s a real sticky wicket you’d be best advised to stay out of.
From your alias–powerangles–you may be able to pull it off. First, find out who ‘chooses the loan handler,’ see if they’ll allow you to work with/under a lawyer-of-their-choice; then find a willing lawyer…or the other way around…I’m guessing here. It won’t be easy–and possibly/probably a non-starter. Also, FWIW, signing services will hire any notary dumb enough to give it a whirl because they’re not the ones who will get sued.
What Arichter said…and I will add that, if it were me knowing I’m in an attorney-only state, I would not go ahead with the signing.
I guess this is an out-of-state company offering the assignment? If so, I’d let them know CT is attorney-only state and you are prohibited from accommodating these assignments. And don’t let them tell you different - it’s YOUR commission on the line here
So, I’m a fairly smart cookie and again declined and you’re right that the offerings were coming from out of state signing companies. I’ve informed them of the same and they tried to insist that I wouldn’t be liable, again, I still declined. But still saw the offerings reposted, making me believe some CT notaries are still taking the business. Would love to get feedback from a current CT notaries on how they navigate some of these signings. For now, I am going to continue to decline or preliminarily accept contingent on the signer having an attorney present. Thanks
@powerangles Took me a while to find it…but here is a link to the actual statute governing this…C.G.S. S 51-88a - I would save this link and send it to anyone who tells you it’s okay to do it.
It sounds like you’re trying to “make up” a way to do closings in a state that clearly has laws that say you can’t. And you also can’t interpret laws and statutes to suit your best interest. There are no work arounds. Period.
A little agressive. IJS. But no, I’m actually seeking advisment on how signing agents in CT have been able to accept these assignments. While not a lawyer, we are expected to interpret and/ or comprehend the laws that we may be held to. One statute states an atty must be present in the transter of property or in any action requiring the issuance of title insurance. Another statute gives the signer/ borrower the right to decline/ waive atty representation and consumers must be notified of that right. So, between these two statutes there may be a resolve that I am just not aware of as a fairly new SA. Especially given how antiquated and intentiaionlly vague the statutes are. I appreciate the sound courteous advisments given and will continue to be cautious with any signings. I’m hoping that within the 3 months window for the life span of this post, another CT notary might chime in while I continue to self edify. But in no way am I trying to “make up” a way to do closings that I can’t legally do.
Maybe I can help clarify this a bit, being a former CT real estate paralegal - yes the borrowers/signers have the right to waive their right to have an attorney represent THEM - but the title company and lender are requiring an attorney do the closings to, basically, represent THEM.
Thank you Linda. So then essentially in your opinion, what type of signings can I complete where real estate is concerned? Refinances? Partial Claims? Helocs? One item offered was a refinance for a lower rate. The ownership didn’t change but there was a requirement in the documentation for titlle insurance which is why I declined.
I’m sorry, @powerangles , but I won’t give an opinion on what types of signings you can do in CT - that is something you would have to take up with your SOS, your own attorney, the CT Bar Association and your state statutes.
MY interpretation and understanding is, as of right now, CT is an attorney-only state so all real estate closings must be handled by attorneys.
I am not an attorney and this is in no way to be considered legal advice.
