WORKING WITH SENIORS
Working with Seniors
CHECK FOR VALID ID & ADDITIONAL TIPS
CHECK FOR VALID IDENTIFICATION WITH AGING SELLER CLIENTS
Check sooner rather than later to confirm your aging seller client has valid identification
A potentially challenging trend we’re seeing is senior-aged sellers entering the market, but no longer have valid identification to provide to a notary for signing seller documents (i.e. the deed to the buyer, etc.).
A notary can accept a valid driver’s license that has expired within three (3) years, but we are seeing many senior aged sellers have expired licenses and/or passports that are beyond this timing. If the seller does not have valid ID, the notary will not be able to acknowledge the documents. The seller will then need to go through the process of obtaining valid identification. This can take time, is often a large hassle, and given timeframes to obtain from the WA DOL or other agency, can potentially delay closing.
MOVING WITH SENIORS
Pack patience and understanding
• Before the move, listen to your family member’s questions and concerns about moving and consider hiring a professional senior move manager. The National Association of Senior Move Managers (nasmm.org) is a good place to start (and get references).
• Sort through your loved one’s belongings as far ahead of time as possible prior to the move to allow time to adjust to the loss of items given away or sold.
• If your family member is moving in with you, there may be alterations you need to have done to your home. If so, these should be completed before moving occurs, for a smoother transition.
• Changes to make your family member comfortable in your home could include level-entry showers, impact absorbent flooring, handrails, ramps or even a new room addition.
Pro-Tip: If you have senior aged sellers, ask them up front if they have a valid driver’s license or passport. If they do not, assist and/or advise them to begin this often time-consuming process. We certainly don’t want this to be a surprise once we near our closing date when seller documents need to be signed in front of a notary public who will require proper identification.
The Washington State Department of Licensing Notary Proper Identification requirements can be found here: https://www.dol.wa.gov/business/notary/npractices.html
• Research moving companies that have experience with moving seniors and have them do an in-home estimate.
• Make arrangements for your family member to stay with a friend or family member not occupied with the move.
• Start moving day rested and help your family member maintain a normal routine.
• Pack for the day and include all necessary medications and favorite/ allowed snacks, magazines, tablet, books and other items to occupy the day.
• Have any necessary medical equipment ready and available to use. Make time for meals, snacks and medications if needed.
• Explain to your family member how the day will unfold and reassure them their possessions are in good hands and to let the movers do all the work.
• Point out to movers items that may be of particular sentimental value to your family member and ask that they take appropriate precautions.
• Setup your loved one’s new space similar to their former home as much as possible. Consider room layout, placement of sentimental items, even their favorite pillow, chair or tea cup.
• Pack patience and understanding as moving can be difficult for anyone, no matter the time of life.
• Allow extra time for everyone to adjust to the new living arrangements whether your family member has moved in with you or into an assisted living situation.
PROPERTY TAX EXEMPTION for senior
citizens and people with disabilities
QUALIFICATIONS
Age or Disability
5 Must be 61 years of age or older (by 12/31 of assessment year).
5 At least 57 years of age and the surviving spouse or domestic partner of a person who was an exemption participant at the time of their death.
5 Unable to work because of a disability.
5 A disabled veteran with a service-connected evaluation of at least 80% or receiving compensation from the US Dept of Veteran Affairs at the 100% rate for a service-connected disability.
Income
5 Have a combined disposable household income less than the threshold designated for each county.
Ownership
5 Own your home (by 12/31 of assessment year) and occupy it as your primary residence for more than 6 months in the assessment year.
ITEMS TO NOTE
• Once approved, the county notifies homeowners when it’s time to renew.
• This exemption ends when the senior dies. If their heirs hold onto the property and do not contact the county to adjust taxes, back taxes may be owed.
TOP TIPS
• This tax exemption will always show in the title report, just under the property taxes exception.
• If you’re working with sellers who have this exemption, be sure to ask if their paperwork is current with the county and if they’re still using it as their primary residence.
MORE ON SENIOR EXEMPTIONS
Find more info online at https://dor.wa.gov/sites/default/files/2022-02/PTExemption_Senior.pdf
Working with Seniors
LET'S TALK ESTATES
PROBATE
• Probate is a legal procedure for administering the estate of a deceased person.
• The court appoints a personal representative for the estate.
• The personal representative has authority to sign on behalf of the estate and sell the property.
• Probate does NOT have to be completed to sell the home.
• How to Sign: Jake Jones, personal representative for the estate of Mary Jones, deceased
TRUSTS
• If a property is held in a trust, title will need the trust documents and a death certificate.
• The documents will tell us who the successor trustee is and who can sign on behalf of the sale.
• How to Sign: Sue Lee, Trustee
LACK OF PROBATE
• There is no court process to assign a representative for the estate, so the title company must determine who can sign. This may or may not be the person who is stating they are the executor of the estate.
• Title will need the death certificate, will (if there is one), and a lack of probate affidavit. The lack of probate affidavit is a form that will be provided by title and which all heirs need to fill out and sign.
• Title will then evaluate the information provided and let the parties know who needs to be involved. It might be the spouse, or spouse and kids from the first marriage, or parents, siblings, etc.
• Fun Fact: our largest signing group so far was 19 people!
• How to Sign: Ben Wilson, heir (all heirs must sign in this situation)
TRANSFER ON DEATH DEED
• A transfer on death deed allows the vested property owner to transfer their interest in real property upon their death.
• TODDs must be recorded while the owner is still living and at the county auditor’s office where the property is located. They are recorded without an excise tax affidavit (REETA) –this is the only type of deed you can record without a REETA.
• Since they are recorded, you’ll see them show up on a title report. Typically, title will not know if the grantor has passed unless someone tells them.
• As long as the owner is alive, it has no bearing on the property – the property can be sold with no issues and with no participation from the grantee of the deed.
• To perfect a TODD, the transferor’s death certificate and excise tax affidavit must be recorded.
• TODDs offer a cost-effective alternative to traditional estate planning vehicles.
Working with Seniors
LET'S TALK TITLE—HOW DO WE SIGN?
PENDING PROBATE
Carl W. Clark, deceased
P&SA-SELLER: The Estate of Carl W Clark, deceased
SIGN: Debbie Flynn, as Personal Representative for the estate of Carl W Clark, deceased (or as Executor, or as Administrator, as applicable)
INITIAL: DF PR CC (or DF E, or DF A, as applicable)
TITLE VESTING: The Heirs and Devisees of Carl W Clark, deceased WHAT WILL TITLE ASK FOR: Title will retrieve the necessary court documents confirming signing authority for the estate.
LACK OF PROBATE
John Wilson, deceased
P&SA-SELLER: The Estate of John Wilson
SIGN: all legal heirs sign (i.e. Ben Wilson, heir)
INITIAL: BW
TITLE VESTING: The Heirs at Law of John Wilson, deceased WHAT WILL TITLE ASK FOR: A lack of Probate affidavit, copy of the death certificate, and a will (if one was left by the decedent). Snohomish has separate requirements—please contact your title officer for these requirements.
TRUST IN TITLE
P&SA-SELLER: Sue Lee, Trustee of the Sue Lee Revocable Living Trust dated January 2, 2011
SIGN: Sue Lee, Trustee
INITIAL: SL
TITLE VESTING: Sue Lee, Trustee of the Sue Lee Revocable Living Trust dated January 2, 2011 WHAT WILL TITLE ASK FOR: Title will need a copy of the Trust to review as soon as possible.
Working with Seniors
LET'S TALK TITLE—HOW DO WE SIGN?
PROBATE
John Anderson is signing for his wife, Sue Anderson
P&SA: John Anderson and Sue Anderson, husband and wife
SIGN: John Anderson, individually and as Attorney in Fact for Sue Anderson
INITIAL: JA AIF SA or
SIGN: Sue Anderson by John Anderson as Attorney in Fact, and John Anderson individually
INITIAL: JA AIF SA & JA
TITLE VESTING: John Anderson and Sue Anderson, husband and wife
WHAT WILL TITLE ASK FOR: Title will need to review and approve the POA as soon as possible in order to avoid any issues (the original POA will need to be recorded).
Depending on the type of POA used and the specifics within the POA, additional documentation may be required.
CORPORATION IN TITLE
Bob Johnson Construction, a Washington Corporation
P&SA: Bob Johnson Construction, a Washington Corporation
SIGN: Bob Johnson, President
INITIAL: BJ
TITLE VESTING: Bob Johnson Construction, a Washington Corporation
WHAT WILL TITLE ASK FOR: Title will need to review the Articles of Incorporation/ Bylaws /Resolutions/ list of corporate officers as soon as possible in order to avoid any issues.
LLC IN TITLE
Meadows Field, LLC
P&SA: Meadows Field, LLC
SIGN: John Mitchell, (manager or member)
INITIAL: JM
TITLE VESTING: Meadows Field, LLC
WHAT WILL TITLE ASK FOR: Title will need to review a copy of the LLC Agreement and any amendments, as soon as possible in order to avoid any issues.
Working with Seniors
TYPES OF POWER OF ATTORNEY
TYPE OF POA
DEFINITION
SIGNATURES MUST BE NOTORIZED POA MUST BE RECORDED ADDITIONAL ITEMS NEEDED
Special POA Sale Used for the sale of a specific piece of property. Has a six-month (or less) expiration date. X X Must contain legal description for that property
Special POA Purchase or Encumber Used for the purchase of a specific piece of property. With lender approval, it can also be used to financially encumber property with a security instrument. Valid only for that particular designated property. Has a six-month (or less) expiration date. X X Must contain legal description for that property
General Durable POA A broad-based document giving power of attorney to an attorney-in-fact for a broad array of activities (medical, financial, etc.). Must specifically include the right to convey (sell) or purchase/encumber property in order to be valid for title insurance purposes. X X Title will need an affidavit of attorney-in-fact
THE FOLLOWING APPLIES TO ALL TYPES OF POWER OF ATTORNEY:
IMPORTANT TO NOTE:
5 Sale proceeds will always be disbursed to the name(s) of the vested seller(s) and not the POA.
5 Power of Attorneys are no longer valid once the grantor has passed away.
5 The POA should sign the PSA as: John Doe, individually and as Attorney in Fact for Sally Doe and can use initials: JD AIF SD
Visit www.cwtitle.com for a link to the Washington State Bar Association website which contains recordable documents, or scan this code:
Working with Seniors
TITLE NEEDS CHECKLIST
DIVORCE
1. Copy of Filed Decree.
2. Copy of Property Settlement Agreement (often not filed or privacy reasons)
3. Was there a Quit Claim Deed ordered? Was it recorded?
ENTITIES
1. Copy of signed controlling documents for the company, and any amendments or resolutions.
a. Trust agreement
b. LLC operating agreement
c. Corporations’ articles of incorporation and by laws
d. Partnership agreement
e. Churches, copy of “Discipline” Resolution allowing for sale, purchase or financing
f. Non profit organizations, similar to corporation, by laws. Copy of Resolution allowing for sale, purchase or financing
BANKRUPTCY
1. Court order to Sell, Purchase, Refinance
2. All court paperwork to Title to review to determine if the 2 – 14 day non concurrent Stays need to be observed. (this could be cumbersome, but the more the better for our review)
PROBATE
1. If your customer is stating probate, we should find it in the county court records. If we don’t we’ll ask for more details (for example: it might have been filed in another county).
LACK OF PROBATE
1. Copy of Death certificate
2. Copy of Will if there was one.
3. If no Will, copy of obituary. Title uses this to confirm Heirship
4. Estate taxes the same as a Probated estate
5. Lack of Probate Affidavit. This is provided by Title upon notice of a deceased party on a file. To be completed by an Heir.
KEY ITEMS TO NOTE WHEN REVIEWING A TITLE REPORT Working with Seniors
FOR THE LISTING BROKER/SELLER
1. Are the names of the sellers the same people you are working with? If not, it might be because of a marriage, divorce, death, trust, LLC, POA, etc. Let us know right away what the situation is and we’ll work with you on next steps.
2. Is the legal description correct? Check the last deed (hyperlinked to the title report) and if there are any differences contact us to find out why. If you used the last deed on the MLS, be sure and upload the Exhibit A legal from the title report.
3. Are there any items that need to be disclosed on the Form 17, such as CC&Rs, maintenance agreements, encroachments, etc.
4. Are the correct number of loans reflected on the report? Review with the seller to see if something is missing or if something on here that shouldn’t be.
5. Are there any restrictions that could impact your sales price (height restriction, low income housing restriction, etc.)
6. Are the tax payments up to date?
7. Are there any liens, judgments or lawsuits that could impact the timing of closing or even your ability to list it? NOTE: Some of those could be a mistaken identity, in which case we’d provide an ID affidavit for the seller to fill out.
8. Are the address and property type correct?
9. Has there been recent work (major remodel, new construction)? If so, we need to work with you on getting proof that contractors and suppliers have been paid.
10. If you have questions on any items (surveys, easements, agreements, housing code violations, landslide covenants, geo-hazard warnings, bankruptcies, divorces, probates, onsite inspections, septic systems, etc.), just contact us to ask.
FOR THE BUYER BROKER/BUYER
1. Are the names of the buyers and the way they want to take title reflected correctly on the report?
2. Is the price correct?
3. Do you have questions about the sellers? Who signed the contract? Does it match who’s on title as the seller? If not, you have every right to check with title or escrow and get clarification on that.
4. Are there covenants, agreements or other information on the title commitment that can impact the way the buyer intends to use the property? For instance, does an easement run right over the spot where you hope to pour a lovely patio? Is there a height restriction that will prevent you from adding another story to capture that view? The full documents are hyperlinked in blue within the commitment.
5. Are there liens, judgments or other issues that could impact your ability to close on time? Ask your escrow officer what the game plan is and if it will delay closing.
6. If you are reviewing the report prior to making an offer, be sure and check the date of the report. If it’s more than a few weeks old, call the title company and see if there are any updates or supplements. Also, be sure that you have all of the supporting documents. (For example, if you see a mention of an easement, be sure you have the recorded document that has the details of that easement.) CW’s title commitment hyperlinks these documents in blue for your convenient access.
7. If you have questions on other item (surveys, easements, agreements, housing code violations, landslide covenants, geo-hazard warnings, bankruptcies, divorces, probates, on-site inspections, septic systems, etc.) when reviewing the report, just contact your CW Title Unit. That’s what we are here for.
Working with Seniors MOVING THROUGH ESCROW
After an offer is written up, negotiated and accepted, what happens next?
* items in green with asterisk do not apply to all-cash transactions
» Escrow receives and reviews Purchase & Sale Agreement
» Escrow closing team is assigned
» Buyer’s earnest money is deposited to escrow
» Title insurance company updates the order with buyer’s information
» Escrow sends buyer a packet with information and documents -- the buyer should complete and return the documents as soon as possible (ID Affidavit may be requested)
» Title company reviews preliminary title commitment
» Copies of the preliminary title commitment are sent to buyer, seller and lender
» Buyer’s inspection period
» Buyer notifies seller of inspection results
* Appraisal ordered by lender
* If not completed in the buyer information package, buyer should choose a fire and hazard insurer and request a fire insurance binder be sent to escrow
» Buyer has the opportunity to review the title commitment at this time and call title or escrow with any questions
* Appraisal completed and submitted to lender -- possible conditions
* Lender may request additional verification of documentation prior to loan approval
» Escrow requests pay-offs for all monetary encumbrances not assumed by buyer
» Title works with appropriate parties to clear any unacceptable “clouds” on title (determine which if any title exceptions can be removed)
* Escrow and lender work together to prepare Closing Disclosure to determine buyer’s funds needed for closing
* Lender provides buyer the Closing Disclosure 3 business days prior to signing appointment.
* Escrow receives and reviews loan documents
» Escrow prepares Settlement Statements for buyer and seller with escrow instructions, wire instructions, and pertinent documents, including the Deed. Buyer’s statement will match the fees on Closing Disclosure
» Escrow makes separate appointment to obtain signatures from seller, and also signatures and closing funds from Buyer
» Buyer reviews and signs documents at this time. This is a great time to ask any questions
» Buyer deposits funds into escrow, preferably via in-state cashier check, 24 hours before recording (due to Washington State ‘Collected Funds’ Law, cashier checks cannot be disbursed until the next business day after deposit into escrow account). In extraordinary situations, wire transfers can be accepted.
* Escrow returns loan documents to lender
» Escrow prepares recording instructions for title
* Escrow receives lender loan funds.
» Recording of new owner at County and title transfers from seller to buyer
» Escrow calls agents, buyers and sellers with recording numbers
» DISBURSE FUNDS (All bills and encumbrances paid and funds delivered to seller). At this point the transaction is closed—buyer takes possession of the property and receives keys per terms of Purchase & Sale Agreement
TIME TO CELEBRATE!
» Escrow forwards final documents to sellers and buyers (final Settlement Statements)
» Original recorded documents are sent to appropriate party directly from the County 8 to 12 weeks after closing.
Working with Seniors
CLOSING COSTS
Seller is responsible for:
Owner’s title insurance policy*
1/2 escrow fee*
Excise tax*
Real estate compensation**
Utility payoffs
Loan balances
FHA/VA financing… other seller fees may apply
Doc preparation fees—power of attorney, etc.
Misc. fees (i.e., wire, courier, signing fees)
Prorated property taxes
Home warranty (depends on contract)
Homeowners Association Fees including:
• Prorated association dues
• Resale certificate / miscellaneous fees
Buyer is responsible for:
Lender’s title insurance policy*
1/2 escrow fee*
Recording fees
Real estate compensation**
Surveys
1st year fire insurance
1st year flood insurance (if applicable)
Doc preparation fees—quit claim deed, etc.
Misc. fees (i.e., wire, courier, signing fees)
Prorated property taxes
Home warranty (depends on contract)
Homeowner’s Association Fees including:
• Prorated association dues
• Resale certificate/miscellaneous fees
Property inspection
Pest inspection
Lender fees including:
• appraisal
• credit report
• loan origination fee*
• loan interest*
• private mortgage insurance*
*Fees determined by sales price and/or loan amount. Payment of fees above can be negotiated within contract.
** Note: Per RCW 18.86 - “Real Estate Brokerage Relationships", real estate compensation is fully negotiable and is not set by law. Compensation could show up on either side of the settlement statement depending on the contract.
Working with Seniors
AFTER THE CLOSING
The successful close of escrow on a home purchase is a great accomplishment. To ensure the next steps of the journey continue smoothly, here’s a list of a few things to consider completing as you get settled.
ESCROW CLOSING DOCUMENTS
After you receive copies of your closing documents, secure these important papers in a safe, fire-proof location.
YOUR DEED
Between 8 to 12 weeks after closing, you should receive a copy of your deed from the county recorder’s office upon official recording of the transaction.
YOUR MORTGAGE LOAN
The documents received at closing will include instructions for your loan payments (deadline for the first payment and the amount). If your loan is not on auto-pay (or even if it is), make a note so that you don’t miss the first payment deadline. Your lender is your first and best resource for any questions you may have related to your new mortgage loan.
PROPERTY TAXES AND HOMEOWNER’S INSURANCE
Your property taxes are calculated prior to closing based on county tax rolls/assessments. If you are paying cash, you will be responsible to pay your property taxes. If you are using a loan for your purchase, find out prior to closing if your mortgage lender has setup an impound account (also known as an escrow account or a reserve account) to pay the taxes. If they have, they will collect the tax payment monthly (often included in your mortgage payment) and will then pay the property taxes twice a year when due. Since property taxes can change each year, you may see your monthly mortgage amount change in the future.
NEW LOCKS & KEYS
After escrow receives recording numbers from the county, you’ll get the keys to your new home based on the possession terms of your contract and will officially have access to the property. It’s recommended that you change the locks and update (or upgrade) any keypads or smart home device codes right away. Upgrading to smart home technology is easier before moving in, as are many repairs such as electrical, painting and plumbing for which contractors will need codes and/or keys.
SETUP OR TRANSFER UTILITIES
Many utilities require proof of residence before they will update and start service. Your settlement statement, which you will receive a copy of, can be used for this purpose. Contact your local providers as soon as possible to setup or switch over services such as:
• Electric
• Gas
• Water
• Sewer
• Cable
• Internet
POSTAL DELIVERY (USPS)
• Home Security
• Garbage/Recycling/ Yard Waste
Be sure to update your address with the postal service along with personal contacts and subscription services to ensure all mail is delivered to your new home address. Save a trip to the post office and update your address online at www.usps. gov. Below are other places you’ll want to notify of your new address:
• DOL (Driver’s license and Vehicle registration)
• Voter Registration
• Internal Revenue Service
• Veteran’s Affairs
• Social Security Administration
• USCIS
• Banks/Credit Union
• Finance Company
• Credit Cards and Digital Wallets
• Subscription Deliveries
• Online Shopping Websites
• Financial Advisor
• Attorney
• Accountant
• Insurance (Life, Home, Auto, Health, Pet)
• Pharmacy
• Employer
• Schools
• County Tax Records if different from property address