Can You Add Someone Else to Title Before Closing?

Reading Time: 3 minutes

Your deal is firm. Closing is around the corner.

Then your client calls and says:

“I want to add my spouse to title.”

Or

“My accountant says I should close in a corporation.”

Luckily, there’s a simple solution:

The Direction Re: Title.

It’s a short, one-page document signed by the buyer, instructing the seller’s lawyer who should be registered on title at closing.

Most of the time, it matches the names on the APS, but it doesn’t have to.

The buyer can direct the seller to register a different name as the legal owner.

It’s fast, simple, and often keeps the closing on track without needing to amend the deal.

But there are limitations... and they matter.

• A Direction Re: Title doesn’t amend the APS. The person being added has no legal rights under the contract.
• If the deal falls apart, only the original buyer can sue — and only the original buyer can be sued.
• The buyer named in the APS remains fully responsible for closing, even if someone else was to end up on title.
• Some lenders may require the APS to match the names going on title. If that’s the case, a Direction won’t be enough — you’ll need to amend the agreement or prepare an assignment.

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As a Realtor, knowing when a Direction Re: Title can be used is a helpful tool. Especially when managing last-minute changes.

Check with your client’s closing lawyer early. It may save you from having to reopen negotiations with the seller’s agent.

And if your buyer is relying on financing, we'll need to confirm with the lender before proceeding.

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