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What is a Closing Agent?

A closing agent is the pivotal professional who orchestrates the finalization of a property transaction, ensuring all legal documents are signed, funds are distributed, and the title transfers smoothly. They are the linchpin for a successful real estate closing, safeguarding a clear path to ownership. Wondering how a closing agent can facilitate your next property venture? Let's examine their role further.
Nicole Madison
Nicole Madison
Nicole Madison
Nicole Madison

A closing agent is a person or business that is charged with the coordination of a variety of activities necessary for completing the sale of a house or other type of real-estate property. It is the job of this person to ensure that all documents and records are completed properly. He or she also makes sure the related funds are properly disbursed. Essentially, he acts as a custodian, a service that can only be performed by a neutral party.

A closing agent doesn’t work for the buyer, seller, real-estate agent, or lender. Instead, he handles paperwork and activities required for each party to a real-estate sale/purchase. For example, a closing agent request copies of such documents as the sale contract and termite inspection from the involved real-estate agent. Depending on the unique details of the loan/sale, he may also request attorney information and home-warranty documentation.

A closing agent must ensure that all documents and records are completed properly during the sale of a house.
A closing agent must ensure that all documents and records are completed properly during the sale of a house.

The closing agent also secures documentation from the lender, requesting the complete loan package from the entity providing the mortgage. She also obtains such things as closing instructions and details concerning disbursement of the mortgage funds. With this and other required documentation on hand, she then prepares the settlement statement, required affidavits, loan documents and a variety of other necessary documents for closing the sale/mortgage. In her dual role as the escrow agent, she also handles the disbursement checks.

Affidavits necessary to complete a real estate transaction are prepared by a closing agent.
Affidavits necessary to complete a real estate transaction are prepared by a closing agent.

At the loan closing, the agent meets with the borrower, seller and their representatives. At the meeting, the closing agent makes sure all documents, such as the note and Truth-in-Lending Statement, are properly signed, witnessed, and photocopied for distribution to the appropriate parties. He returns originals to the parties as required. For example, he gives the buyer/borrower copies of all the signed documents, including all the affidavits and documents provided by the lender.

At a closing, there is generally a great deal of paperwork for even the simplest of purchases, even if no mortgage or assumption of mortgage is involved.
At a closing, there is generally a great deal of paperwork for even the simplest of purchases, even if no mortgage or assumption of mortgage is involved.

The closing agent makes sure the buyer and seller agree that the papers are in order. She then collects any checks required for covering closing costs and/or deposits. She establishes a new escrow account if the lender is covering the borrower’s yearly property taxes and insurance. Though the agent collects checks at the closing, she does not usually disburse the funds in entirety until the transaction has been recorded.

A closing attorney might be in charge of setting up the escrow account.
A closing attorney might be in charge of setting up the escrow account.

Following closing, the agent’s job is to record the deed and mortgage with the appropriate courthouse. The original deed is then returned to the new real-estate owner while the original mortgage documents are returned to the lender. She then prepares the title policies for both the new owner and the lender. Usually, the closing agent returns such documents through the mail.

Nicole Madison
Nicole Madison

Nicole’s thirst for knowledge inspired her to become a SmartCapitalMind writer, and she focuses primarily on topics such as homeschooling, parenting, health, science, and business. When not writing or spending time with her four children, Nicole enjoys reading, camping, and going to the beach.

Learn more...
Nicole Madison
Nicole Madison

Nicole’s thirst for knowledge inspired her to become a SmartCapitalMind writer, and she focuses primarily on topics such as homeschooling, parenting, health, science, and business. When not writing or spending time with her four children, Nicole enjoys reading, camping, and going to the beach.

Learn more...

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    • A closing agent must ensure that all documents and records are completed properly during the sale of a house.
      By: Elenathewise
      A closing agent must ensure that all documents and records are completed properly during the sale of a house.
    • Affidavits necessary to complete a real estate transaction are prepared by a closing agent.
      By: Marzky Ragsac Jr.
      Affidavits necessary to complete a real estate transaction are prepared by a closing agent.
    • At a closing, there is generally a great deal of paperwork for even the simplest of purchases, even if no mortgage or assumption of mortgage is involved.
      By: Marzky Ragsac Jr.
      At a closing, there is generally a great deal of paperwork for even the simplest of purchases, even if no mortgage or assumption of mortgage is involved.
    • A closing attorney might be in charge of setting up the escrow account.
      By: JohnKwan
      A closing attorney might be in charge of setting up the escrow account.
    • Closing costs must be paid in advance of finishing a real estate transaction.
      By: Kurhan
      Closing costs must be paid in advance of finishing a real estate transaction.