For some transactions it can be very beneficial to have a neutral party. Such an individual can liaise between the buyer and seller to ensure that everything proceeds correctly. Such a service isn’t required for most daily transactions, but it can be vital for more important transactions. A closing agent is an individual who is often used during the final stages of a property deal. This person will ensure that all the documentation is as it should be and that all the right steps are taken to finalize the deal. They also ensure a smooth transition of the property from the seller to the buyer.
The Role of the Closing Agent
This individual is a neutral party in the sale; this means that they don’t work for either the buyer or the seller. They are also not a representative for the mortgage company or real estate agent. This neutrality is important to ensure that they are able to do their work impartially and fairly. This person will need to handle documentation from all the different people involved in the sale. They can ask to see a variety of different documentation related to the sale depending on the unique aspects of it. Sometimes they may require the input of attorneys representing the buyer and seller.
If the buyer needs to secure a mortgage the closing agent will be involved in this too. This neutral party will want to ensure that the mortgage is progressing smoothly and that the funds are going to be ready to put into the seller’s bank account. It is important for them to see all the documentation pertaining to the mortgage so that the buyer can be reassured that the money will get to them when the sale is finalized. This agent will keep the money in escrow so that it can be released when the time is right.
Just before the sale is finalized there will be a meeting between the agent, the buyer, and he seller as well as any representatives. At the meeting the final documents pertaining to the sale will be signed and witnessed. There is also an important document called the ‘Truth-in-Lending‘ that needs to be finalized. Many of the documents will also need to be photocopied at this time so that everyone that needs to have them will have their own copy.
Once everything is in order it will be time to collect fees to pay for closing costs. Any money that needs to be paid will now be put into escrow and managed by the agent. Once the transaction is fully recorded then the money will be paid to the seller and the keys handed over.
Some Final Thoughts on the Job of a Closing Agent
For people who are buying or selling a property the role of the closing agent will be very important. It ensures that everything happens as it should and it protects everyone involved. If such work were to happen with this agent it could become really messy.
