Q: Can a real estate licensee notarize documents at a real estate closing?
A: Maybe but not advisable. Under Alabama law, deeds and other documents require a witness to or acknowledgement before a notary of a signature to be valid. A notary with a personal, financial interest in the conveyance of the property cannot notarize a document; however, Alabama allows a person who has an interest in just the transaction to notarize. So, a contractor or the closing attorney, who both have a pecuniary interest in the transaction and get paid for the transaction to occur, can be notaries at closing. A real estate licensee can apply to be appointed a notary public with the probate judge of his or her county. If the real estate licensee has a personal, financial interest in the conveyance, then the licensee cannot notarize. Alabama laws and case law do not address whether being a buyer’s or seller’s agent causes the real estate licensee to have a personal, financial interest in the conveyance. Therefore, it is advisable for another person to witness or notarize the closing documents.
Law: Ala. Code § 35-4-20; Frazier v. Malone, 387 So. 2d 145 (Ala. 1980)
Date Issued: August 2017
Q: A buyer and a seller did not close on the closing date. Is the contract still enforceable?
A: Maybe. This depends on the specific provisions in the contract and the specific situation, but, in general, contracts to purchase realty are considered options where the period of time is of the essence to the contract. Once the time period for closing has passed without a closing, the purchase contract is generally unenforceable.
Law: Jackson v. L.D. McRenynolds, Inc., 430 So. 2d 873 (Ala. 1983); Ex parte Keelboat, 938 So. 2d 873 (Ala. 2005)
Date Issued: August 2017