January 29th, 2018 at 1:07 pm
Answer: Yes, your client may be correct. Like other contracts, every trust agreement has its own terms and conditions. One trust agreement may allow just one co-trustee to sign documents without the other co-trustees, whereas another trust agreement may require 2 or more co-trustees to sign together.
As a practice tip, oftentimes clients do not want us to see a lot of personal matters addressed in their trust agreement. Instead of asking to see their trust agreement, you can just ask for their one-page Certification of Trust, which should show whether one or more co-trustees must sign for the trust. Some clients do not know what a Certification of Trust is. Suggest that they look through their trust documents, because their attorney was likely to have prepared one for them.
Also, if the Representative Capacity box above the buyer’s signature is checked in the Residential Purchase Agreement (RPA), the buyer must, within 3 days after acceptance, provide the seller and escrow officer with the Certification of Trust or other evidence of authority to act in that capacity (see paragraph 19 of the RPA).
-Thank you to Jon Koegler (Calabasas Office) for suggesting this week’s legal tip.
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