In a decision issued by the First Circuit Court of Appeals on December 13, 2016, the Court ruled that a notary acknowledgment indicating that a mortgage signed by an attorney in fact under power of attorney was sufficient.
The Court rejected the Bankruptcy Trustee’s argument that the acknowledgment was not clear that the attorney signed as the free act and deed of his principals. The case is an important roadblock for Bankruptcy Trustees seeking to avoid mortgages on the basis of minor notary defects, and is a win for lenders and title insurers.
HSBC v. Lassman, United States Court of Appeals for the First Circuit, Case No. 16-1150.
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