Dating closing documents

Is it bad to back date documents?

However in practice, for both good reasons and bad, back dating of documents does occur. The risks of back dating (or misdating) documents accidentally is multiplied in modern commercial transactions by the practice of getting all the documents signed before “completion” and then rushing around dating them afterwards.

Can a buyer sign closing documents on the same date?

This is a potential issue for buyers who are receiving a mortgage loan from a lender. For buyers in this situation, you must be careful to sign the closing documents on the same date for which the loan is initially recorded.

How do courts deal with back dating of legal documents?

Where both parties consent to the back dating of the document, normally the courts in common law countries will simply disregard the back dating of the document, and treat the rights as accruing from the date when the document was actually executed.

When is it improper to date a document?

It is improper, of course, to date a document on one date, but the event occurred on a different, later date. Typically this type of backdating occurs when the beneficiary of the backdating can reap some sort of tax or other benefit if the event had occurred on the earlier date. Examples of improper, fraudulent backdating:

When is it appropriate to backdate a document?

Whether backdating a document is appropriate depends on the backdating’s “purpose and effect.” Backdating to perpetrate a fraud is obviously unethical and illegal. However, backdating to memorialize a prior act or event is a legitimate and necessary practice. Past acts and events can – and often must – be documented.

When is Backdating a document fraudulent?

If backdating document misleads a third party or gives a false impression about when an action was taken, it may be fraudulent. The parties’ intentions are also important when evaluating whether backdating is legal.

When is it improper to date a document?

It is improper, of course, to date a document on one date, but the event occurred on a different, later date. Typically this type of backdating occurs when the beneficiary of the backdating can reap some sort of tax or other benefit if the event had occurred on the earlier date. Examples of improper, fraudulent backdating:

Is backdating ever okay?

Is Backdating Ever Okay? Although backdating can be either legitimate or improper, it is often misunderstood and associated with wrongdoing. Backdating encompasses a broad scope of conduct ranging from blatant fraud to the legitimate and common practice of executing a document after the event has already occurred.