A Personal Journey Through Guardianships and Real Estate
Not too long ago, I found myself in the midst of a real estate transaction that was a little different than ones I have encountered in the past. Although I have done many deals with guardianships, its important to note they are all a little different. It involved a guardianship for an incapacitated individual, and it opened my eyes to the complexities hidden beneath the surface of seemingly straightforward deals.
As with any real estate sale, there came a point when all parties involved eagerly signed on the dotted line, anticipating the joyous closing of the deal. However, we still needed to get approval from the judge.
The Wait for Judicial Approval
In this particular case, the transaction could not proceed to funding until a judge granted their official approval. This waiting period was a crucial step in the process and added a layer of uncertainty to our already intricate journey.
The duration of this wait varied, as it often does in such cases. Sometimes, it takes a week, while on other occasions, it can take 2-3 weeks. The timeline depends on a myriad of factors and circumstances unique to each case.
During this time, the funds for the transaction will be held in escrow, waiting for the green light from the judge. This waiting game has consequences that can extend beyond the realm of mere formalities; it has real-world implications.
Understanding the Impact
One of the most crucial lessons from this experience was the significance of making all buyers aware of this potential delay. If you’re representing the buyer, you need to realize that this waiting period could affect not only interest rates but also your clients anticipated move-in date.
It is during this period of uncertainty that the importance of reviewing the title commitment becomes of paramount importance. Specifically, examining Schedule B and C will prove to be essential. These schedules often hold the key to potential challenges that might arise during the transaction. They could reveal any liens, encumbrances, or issues that could potentially complicate matters. In this example, the clearance from a court was written out in Schedule C and explained what needed to happen prior to funding.
Seek Guidance When Needed
Navigating such intricate situations requires a keen eye for detail and a willingness to seek guidance when necessary. It’s perfectly acceptable to ask questions of the escrow agent handling the transaction. And if any aspect remains unclear or raises concerns, there’s no shame in consulting with an attorney well-versed in real estate law. In fact, it’s a prudent step that can make all the difference.
In closing, my personal journey through a real estate transaction involving a guardianship underscored the importance of understanding the role of a judge’s approval, recognizing its potential impact, and conducting a thorough review of the title commitment. While these situations may introduce complexity, they are a vital aspect of ensuring the well-being of those under guardianship. By sharing this story and taking the necessary steps, we can navigate these transactions with confidence and professionalism, ultimately benefiting all parties involved.
