Question

Can a real estate licensee notarize documents at a real estate closing?

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

Question

A seller verbally commits to an offer but before the buyer can transmit a signed offer to the seller, the seller receives and accepts another offer. Is the seller’s verbal commitment binding?

No. In Alabama, a contract for the sale of a house is only binding if in writing and signed; however, a verbal commitment may be valid if the buyer pays at least a portion of the purchase price and is put in possession of the property by the seller. 

Law: Ala. Code § 8-9-2(5)
Date Issued: August 2017

Question

A buyer and a seller did not close on the closing date. Is the contract still enforceable?

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