Unlocking the Secrets of Real Estate Closings in New Hampshire – Who Signs the Deed?

 



Closing the deal on the sale of your home is exciting, but the process is not as straightforward as you might think, especially in New Hampshire. The key question is, who really needs to sign the Deed? Let's unravel the intricacies.

What is a Deed?

The Deed is a crucial document that is signed normally at closing by the seller(s) and is what transfers the ownership interest in the property from the seller to the buyer. 

You might have heard that if your spouse isn't on the deed, they don't need to be at the closing. Well, in New Hampshire, that might not be the case. To understand this, we first need to grasp the difference between Title Interest and Homestead Interest.

Title Interest Vs. Homestead Interest

Title interest is a legal ownership right, granting the privilege to use and occupy the home. On the other hand, homestead interest is an equitable interest deeply rooted in early law, designed to shield the equity in a primary residence from creditors.

Homestead interest relates to both title/record owners (those named on the Deed) and non-title-holding spouses of record owners. This is where marital status becomes a crucial factor. Homestead protection is in place to prevent one spouse from selling the family home without the knowledge of the other.

Let's say you're selling your primary residence. If you're on the deed but your spouse isn't, both of you will need to be present at the closing. Why? Because your spouse will have to sign off on homestead rights, ensuring that they are aware and in agreement.

Homestead also applies to spouses of trustees, if it is their primary residence.

By law in New Hampshire, the homestead rights may survive a real estate sale if not properly addressed on the Deed. A Deed should always state marital status of the grantor (seller). Failure to state marital status creates a title issue unless the property is not homestead and The deed states so. A deed noting that the grantor are husband and wife and signed by the spouses should release the homestead rights, though preference is for there to be statement in the deed that the spouses are releasing their homestead.

Who Needs to Sign the Deed?

For sellers of a Primary residence, the answer is clear. All record owners and their spouses need to be present at the closing. The spouse's attendance is crucial as they will sign off on homestead rights directly on the deed.

But what if the record owner was single when taking title, is now married, and the property is their primary residence? In this case, the spouse will need to sign the Deed to release homestead rights.

And in the scenario where husband and wife were on title but are now divorced, both sign off on the deed. Unless a quitclaim deed has already been executed, removing one of them. It's essential to note that a final divorce decree stating property distribution is not sufficient; a deed is required to clear the title.

Who Cannot Sign the Deed?

Typically, a Power of Attorney (POA) isn't permitted to sign the Deed due to the potential for fraud. Although NH title standards allow POA usage, title insurance underwriters often require evidence of incapacity before allowing a POA to sign.

For instance, if the record owner is incapacitated or incompetent, evidence such as a physician's letter may be required to activate the POA. Additionally, the original POA document must be recorded with the new Deed.

In Conclusion

In a nutshell, navigating the complexities of who needs to be at a closing in New Hampshire involves considering marital status, homestead rights, and the roles of everyone involved in the sale of the property. While it may sound a bit tricky, paying attention to these details ensures a smooth closing process.

(603)434-1414 | www.brokerstitlenh.com |info@brokerstitlenh.com


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