Risks of Doing a Remote Closing?

Question

hi, what are the risks of doing a remote closing outside of the property  condition?  I'm most concerned about some contractual issue coming up, i.e. the title company signs the closing documents despite a  title defect.

Account Closed · Answer

Not sure what title company "grants a concession" means.  The title company is issuing title insurance, so they don't accept anything that would come back to bite them.  You have to approve the title report anyway.  As for giving earnest money back:  the terms and consequences or failure to perform by either party are outlined in the contract.  Typically, escrow follows the instructions in the purchase agreement.  They don't release any money or do anything without the agreement of all parties.

Dawn Anastasi · Answer

I just did a remote closing where I was the seller for a property 2 hours away.  Everything went smoothly and I was glad I didn't have to drive 2 hours.  Also was able to close 1 week early which is nice -- like getting my money sooner.

Sean Dezoysa · Answer

No, I'm more concerned with doing an out of state remote closing and the title company grants a concession, allows a title defect through, gives back earnest money to the other side despite them failing to close, etc. I don't know how much discretion they have at the closing table.

Account Closed · Answer

All CA escrows are "remote".  Title/escrow company prepares title report and docs, seller and buyer sign and send them back, seller funds, title escrow/escrow company record and distribute proceeds.  Nothing gets recorded or distributed without permission of all parties.

Is your question about the risks of buying "sight unseen" or with no inspection? I've done that plenty of times but of course there is risk.  The offer has to take the risk into account.