New Paragraph 8(i) for Deed Conveyance in Form 2-T

QUESTION: I am the Broker-In-Charge of my firm, and one of my agents is asking how to fill out the blank in new paragraph 8(i) in the Offer to Purchase and Contract (Form 2-T) where you indicate who the deed is to be made to. Why was this paragraph revised? How are my agents supposed to identify the buyers in the blank?

ANSWER: Prior to the 2023 revision, Form 2-T simply had a blank to identify who to name as the grantee on the deed. Routinely, closing attorneys saw errors with the names inserted and this caused last minute closing delays as the parties negotiated and amended the purchase agreement to correct the deed and ensure it was consistent with the parties’ contract. The new language was drafted so that in most transactions, no information will be provided in the blank of paragraph 8(i).

The new provision gives the closing attorney the ability to have the deed drafted in several ways, without anything being entered into the blank at the end of this paragraph. The Grantee can be: (1) the buyer(s) named on line 1(b) on the first page of Form 2-T; (2) a legal entity that the buyer solely owns; (3) a trust that names the buyer as the beneficiary; or (4) a person related to the buyer. If any of those situations describes how the buyer wishes the deed to be drafted, there is nothing further your agents must do to ensure the closing attorney can accomplish the intent of the parties.

Rare situations may arise requiring the blank at the end of paragraph 8(i) to be filled. For example, if a buyer wants a corporation that has multiple shareholders to take title to the property, that corporation’s name should be included in the blank. If a buyer wishes to have a significant other on the deed, and a lender did not require that both parties already be listed as buyers on line 1(b), that person should be added to 8(i) if the friend is not a relative of the buyer. Excepting unusual circumstances, the proper advice to agents is to leave paragraph 8(i) blank as the options already listed will suffice.

Lastly, a buyer’s agent should communicate clearly with the closing attorney to ensure that the attorney is aware of exactly how the deed should identify the grantee.

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