A closing agent coordinates the necessary activities to complete the sale of real estate, ensuring all documents and funds are properly disbursed. They act as a neutral party and handle paperwork and activities required for each party in a real estate purchase/sale. After closing, they register the deed and mortgage with the appropriate court and prepare title policies.
A closing agent is a person or company charged with coordinating a variety of activities necessary to complete the sale of a home or other type of real estate. It is this person’s job to make sure that all documents and records are completed correctly. He or she also ensures that the related funds are properly disbursed. Essentially, it acts as a custodian, a service that can only be performed by a neutral party.
A closing agent does not work for the buyer, seller, real estate agent or lender. Instead, it handles the paperwork and activities required for each party in a real estate purchase/sale. For example, a closing agent requests copies of documents such as the sales contract and the termite inspection from the real estate agent involved. Depending on the unique details of the loan/sale, you may also request attorney information and home warranty documentation.
The closing agent also obtains documentation from the lender, requesting the complete loan package from the entity providing the mortgage. He also gets things like closing instructions and details about the disbursement of the mortgage funds. With this and other required documentation in hand, she prepares the settlement statement, required affidavits, loan documents, and a variety of other documents needed to close the sale/mortgage. In her dual role as escrow agent, she also handles disbursement checks.
At loan closing, the agent meets with the borrower, seller, and their representatives. At the meeting, the closing agent ensures that all documents, such as the note and the Truth in Lending Statement, are properly signed, witnessed, and photocopied for distribution to the appropriate parties. He returns the originals to the parties as needed. For example, he gives the buyer/borrower copies of all signed documents, including all affidavits and documents provided by the lender.
The closing agent makes sure that the buyer and seller agree that the documents are in order. You then collect any checks needed to cover closing costs and/or deposits. She sets up a new escrow account if the lender is covering the borrower’s annual property insurance and taxes. Although the agent cashes checks at closing, she generally does not disburse the funds in full until the transaction has been posted.
After closing, the agent’s job is to register the deed and mortgage with the appropriate court. The original deed is returned to the new real estate owner, while the original mortgage documents are returned to the lender. Then prepare the title policies for both the new owner and the lender. Usually, the closing agent returns such documents by mail.
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