The closing represents the conclusion of all the work and documentation in the home buying process. It is when the buyer becomes the new owner of a home. A closing agent manages the closing and is responsible for certain items prior to the closing date. This article details Pennsylvania and New Jersey closing agent responsibilities.
Definition of a Closing Agent
A closing agent is usually chosen by the lender to compile paperwork and other tasks for a closing. The agent actually represents the mortgage company even though the home buyer is accountable for paying the charges as included in closing costs. Some purchasers opt to use that same company to analyze paperwork such as purchase contracts on their behalf. However, they do have the right to find a independent attorney to represent their exclusive interests.
Closing Agent Functions Before the Closing
The closing agent is responsible for several duties required in a real estate transfer. The initial duty is a title search. This is a review of municipal records on the real estate to confirm that the title is suitable to be given to a new owner. The second is preparing legal records for the property transfer and financing. Finally, they are required to also arrange settlement documents that list the charges for all individuals in the transaction. Each of these ensures a proper closing.
The closing agent completes the actual closing by making sure the paperwork is executed and money is transferred. The purchaser and seller are responsible for endorsing certain documents, although the majority need only the signature of the borrowers. Some paperwork is filed into public record while others are kept by the lender. Another critical part of a closing is the exchange of money. All fees and calcualtions are included in a settlement document supplied to both purchaser and seller. In most circumstances, money is given from the lender to the closing agent for proper distribution.
Pennsylvania And New Jersey Closing Agent Responsibilities
The official job of a closing agent normally starts with a title search, but may often also involve examination of documents such as condominium paperwork or purchase contracts. It is important to note that they act on behalf of the mortgage company in the transaction no matter who pays their fee. Purchasers, Sellers, and real estate professionals must all act closely with a closing agent to secure a successful closing.