| If you're not familiar with what a closing agent does, | | | | lender (if applicable) and the funding of your sales |
| you may be surprised to learn he or she is an | | | | purchase. |
| important part of your homebuying team. The function | | | | 3) Establishes An Escrow or Trust Account-Once the |
| of your closing agent is to direct and supervise the final | | | | closing agent takes your deposit, they will put it into a |
| phases of your purchase transaction and to make | | | | special account with a local lending institution until the |
| sure the buyer and seller complete their obligations of | | | | deal terminates and the funds are transmitted to the |
| the sales agreement. It's not uncommon for this agent | | | | seller. Any funds allocated by the seller to fix the |
| to be hired by a title or escrow company. | | | | property will also be put into this account. In states |
| It's not unusual for most buyers to be unaware of who | | | | permitting lawyers to represent both parties, the seller's |
| their closing agent is until the end stages of the sales | | | | representing lawyer will open up the account. |
| transaction. Meanwhile your agent becomes active | | | | 4) Distributes Expenses-Your closing agent will figure |
| way before the finalization of your transaction. A | | | | out each party's liability in regards to their share of |
| seasoned agent will: | | | | taxes, interest, and insurance premiums. |
| 1) Take Care Of The Details Of Obtaining Title | | | | 5) Complies With Directions-The closing representative |
| Insurance-A key function of your closing agent is to | | | | will abide by all written directions dictated by you and |
| request a complete title investigation. Should your | | | | the seller and ensures all aspects of the sale will be |
| agent be currently working for a title company or is | | | | finished by the date of closing. |
| already a lawyer, they will personally take care of the | | | | 6) Records The Deed and Pays The Seller-At the |
| search. Once the results of the report are sent back, it | | | | time of closing, the agent will transfer funds to pay off |
| will reveal whether the seller has any outstanding liens, | | | | the seller. Once that happens, the agent will make a |
| easements, and encumbrances that have to be taken | | | | public recording of the deed to transfer the house to |
| care of by the seller before the sales transaction can | | | | you. |
| be completed. As soon as the seller fixes all title | | | | All fees charged by the agent are included in the |
| problems, your closing agent will complete the final | | | | closing costs. Depending on which part of the country |
| steps needed to have a title insurance policy issued to | | | | you reside in, either buyer or seller will cover the costs; |
| you. | | | | while in certain locales the agent's fee is split equally. |
| 2) Coordinates Both Lenders-One important role of the | | | | Consult with your Realtor to find out which procedure |
| closing agent is to supervise the payoff of the seller's | | | | is the norm in your region. |