Posted by Gary Boehm on 9/18/09 9:47am
Msg #304242

Distributing funds

Just got a call from one of my GOOD clients for a purchase signing. RE Agents will be there (automatically upped my fee). But then he says "I'd like to to stop by the #/# Bank and pick the commission checks to give to the Realtors".

It was my initial understanding the Notaries could not disburse funds. That it was something only an attorney could do, which is why "we" can do all the other signings. I told him I would get back with him.

Comments/opinions anyone?

Reply by John/CT on 9/18/09 9:55am
Msg #304244

Merriam-Webster definition of Disburse: : "a: to pay out : expend especially from a fund <disburse money> b : to make a payment in settlement of." This doesn't sound like what you're asked to do.

Reply by Bob_Chicago on 9/18/09 10:27am
Msg #304248

IMO, in most states, it is more a matter of ...

do you want to? John is correct, that you are not disbusing, but
simply delivering.
Besides the problem of watching the brokers sitting there with their
tounges hanging out, when you hand them the checks, you are, in effect,
saying that everything is cool. and the the sale was properly completed,
all necessary dox properly signed , etc., etc,
TCs get big bucks for undertaking this responsibilty.
You want to make sure that there are no "comebacks" to you if
something goes south.
Not to say that I having done it myself, but be carefull and be sure to call
TC before delivering checks to make sure that they are satisfied that everything
is ok.

Reply by Gary Boehm on 9/18/09 11:13am
Msg #304253

Distributing funds

Thanks for your insightful replies. It's not like I am accepting funds into one of my accounts and then writing checks out to people. So I would take the viewpoint that I am just being a courier - picking up something at a bank and delivering them to a recipient.

I just know that whenever I do a purchase signing at a RE office - the agents start demanding "Where's my check? Where's my check!?!" and then they stomp out of the room when I tell them I am not the one to give them out. This after I told the TC ahead of time to be sure and tell them that I will not have their checks with me. And this is the main reason why I always add at least $50 to my fee whenever I find out agents are going to be present at a signing.

I had a signing two weeks ago at an investment property purchase with a private lender. There were some minor issues that the lender had and he was a little concerned. The buyer asked me if I would witness a Quit Claim Deed and the lender was satisfied with that. THEN another agent walked into the office (not even involved with the sale) and said "I wouldn't do this deal. I wouldn't do it if I were you" and blew up the whole thing! Totally wasted an hour and a half of my time while they argued over it (and the three times I gathered my papers and started to leave but they stopped me because they wanted to work it out).

Anyone ever read "Looking Out for Number One"? Still applied today!

Reply by Cari on 9/18/09 12:16pm
Msg #304261

I've only done this once, and it was not biggie...

realtors were there, a rep from the lender, and the borrower's attorney...all I did was deliver the paperwork and checks, and got paid a good price for just sitting there quietly notarizing signatures...was a good day actually...

Reply by Stamper_WI on 9/18/09 1:38pm
Msg #304273

Re: I've only done this once, and it was not biggie...

Usually the TC has you fax back critical doc's THEN they clear you to disburse. I am doing one for a FSBO sale soon. The borrower arranged for us to use a room at his credit union as well as the fax. Nice of them considering they aren't getting the loan.

Reply by MW/VA on 9/18/09 2:21pm
Msg #304283

You've already gotten some good feedback. I know the agents don't like it when we handle purchases, because we don't fund at the table & they have to wait for their checks. They can be like sharks waiting to be fed. You're being asked to deliver the checks only. IMO this doesn't come anywhere close to the definition of "disbursing" as it applies in this industry. I see it as an accommodation for a GOOD client.

Reply by SharonMN on 9/18/09 2:27pm
Msg #304288

I consider "courier service" to be a large portion of my job, so if this is the kind of task the title company would be comfortable entrusting to FedEx or a same-day courier, I have no trouble accepting. I use the same type of logic when *declining* RESPA or other application signings.