How One Person Can Sell a Home With Two People on the Deed

It’s not common but one signature on a listing is enough to put a home into MLS.

Most Sacramento Realtors do not know how one person can sell a home with two people on the deed. Perhaps it’s because they did not realize it was possible or never had reason to ponder the feasibility. Or, maybe they don’t really understand how title and escrow works. Of course, my title and escrow background has been instrumental to me throughout my 40+ years in the real estate business. I spent only a couple of years in the title industry and two more as an escrow officer, including as a certified escrow officer, but that training has been most beneficial throughout my long career.

The way it works in Sacramento is say you have a husband and wife, both on title, and one person is not available to sign the listing paperwork. Or, maybe it’s a family trust, and the successor trustee is in the process of transferring title to an heir, but that deed is not yet recorded. Can either of these people who appear not to possess full capacity sign a listing agreement? Of course they can. I am informed they can also sign a purchase contract. What they cannot do, without full authority, is close escrow, but as long as that happens prior to closing, it can work.

In the case of a married couple, one person already has an interest in the property. It’s how one person can sell a home with two people on the deed. I often take listings with just one signature from a spouse, waiting for the second spouse to either sign the listing paperwork or sign an interspousal transfer deed. It takes only one signature to put the listing into our Sacramento MLS. Didn’t know that? Well, you do now.

I checked with the title company in the case of an heir signing a listing agreement prior to recordation of the deed from the successor trustee, and that’s fine, too. As long as the deed records during the term of the listing and prior to closing. Actually, to really nitpick, delivery of the deed is what constitutes title transfer, not recordation. Didn’t know that? Well, you do now.

When I met with a prospective seller yesterday, her lawyer told her she could not sign a listing agreement until her husband signed off on the deed. Which is not true. But she might have also misunderstood. Often the case, people misquote or impose their own thoughts. Or, her lawyer might not be a real estate lawyer. I do whatever makes my sellers the most comfortable. Just because I know how one person can sell a home with two people on the deed, doesn’t mean it must be done that way.

Knowing when not to argue is a gift. Likewise, knowing not to give legal advice without being a lawyer is also good risk management. If you’re looking to sell a home in Sacramento and need an experienced Realtor, call Elizabeth Weintraub at 916.233.6759.

Happy birthday to a certain birthday boy today.