We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.
Finance

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

What is a Closing Agent?

Nicole Madison
By
Updated: May 16, 2024
Views: 79,879
Share

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.

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.

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.

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.

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.

Share
SmartCapitalMind is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Nicole Madison
By Nicole Madison
Nicole Madison's love for learning inspires her work as a SmartCapitalMind writer, where she focuses on topics like homeschooling, parenting, health, science, and business. Her passion for knowledge is evident in the well-researched and informative articles she authors. As a mother of four, Nicole balances work with quality family time activities such as reading, camping, and beach trips.
Discussion Comments
Nicole Madison
Nicole Madison
Nicole Madison's love for learning inspires her work as a SmartCapitalMind writer, where she focuses on topics like...
Learn more
Share
https://www.smartcapitalmind.com/what-is-a-closing-agent.htm
Copy this link
SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.

SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.