Expert: Dick Dennis - 12/10/2009

Question
We recently sold a house which was in both my mother and sister's name.  Since they live outside the US, I had POA to handle the sale and closing of the home.  The proceeds of the home is made payable to both of them since they were both on the deed.  Unfortunately, only my mother has a US bank account.  The bank will not accept the deposit in the absence of my sister even though she endorse and sign the check over to my mom.  With POA, can I request the buyer's lawyer to re-issue a check with only my mom's name?  The funds are sitting in his IOLTA account and the bank will deposit the proceeds if the check is made payable to X "or" Y instead of X "and" Y.  Is this request valid?  

Answer
This is no longer a real estate matter, Karen. It's probably should be handled by an estate attorney or Certified Financial Advisor. Or, since you have a power of attorney, why not go into your favorite bank and ask the manager there what is the best way to handle this? Chances are they would be willing to open an account for your mother and sister WITH the closing check and you having signed it as their POA. Chances are they would inform you that you would not be able to withdraw any of it until some time in the future when both your mother and sister sign in front of a notary public or the equivalent in whatever country they are located. Their money would sit there until the bank receives instructions from your mother and sister in writing and in front of a notary (or equivalent) with instructions what to do with the money. Or if they both show up in person with the proper identification.

My guess the buyer's attorney would not make the check payable to only one person when both were on title at the time of closing. Again, he would have to get written instructions from BOTH your mother and sister with proper identification. I do wish you well, Karen.

Dick Dennis
dixiedee13@aol.com