I never sign this.
1. I am not the "closing agent" in Connecticut (i.e., disburse the funds, record documents and issue title insurance policy).
2. My E&O does NOT cover everything within the text of that document. So if the "closing agent" disbursed the funds later than anticipated and the borrowers refused to pay the additional interest and late fees due to the original lender, who refused to release their mortgage until paid, and the new lender was PO'd because they are not in a first lien position - would your Notary Public E&O cover this? It wasn't within your function as a NSA, but you signed agreeing to pay any lose or fees ... and the title company didn't have to sign it because you already did.
3. I will sign NSA checklists, anything where I state I saw original identification as an NSA, but I never sign anything agreeing to cover loses where I have no control over the entire transaction.
My Connecticut personal opinion. May be different in your state. On Monday, for curiosity sake, call your E&O company and ask if they would cover this type of situation. Also ask if they cover your courier services (i.e., taking loan package to drop box, get in car accident on the way, signed loan documents destroyed, and borrowers have to re-sign at a higher interest rate because of delay and increase in rates). |
