25 Oct What is the Role of a closer in real estate transaction
What is the role of a closer in a real estate closing
In the state of Minnesota, we have a title company representative handle the closing. Find out the role of the closer in a real estate transaction.
In a real estate transaction, it is common to have two closers. You have one closer for each side of the transaction. One for the buyer(s). And one for the seller(s).
The buyer(s) closer
The title company for the buyer has specific duties. They are responsible to protect the buyer’s interests. Included in that is having the title company’s attorney review the title work. Make sure there are no judgements, liens or clouds on the title. This can include an unrecorded satisfied mortgage.
The closer will then balance the settlement statement with the buyer’s lender. This settlement statement is then given to the buyer before closing to examine and approve. Before the closing the closer reviews mortgages documents. The closer then prepares the closing package for the buyer’s signature. After the papers are signed the closer provides the buyer with copies of everything. The buyer’s closer disperses funds.
The seller’s closer
The closer for the seller is responsible to providing clear title. This includes satisfying all mortgages and any liens. Also, to search for assessments. This would be delinquent, current and pending assessments. Additionally, the closer looks for any items that could cloud the title. Like recording of a divorce and how interest in the property was negotiated. The closer then provides copies of all documents signed by the seller.
Can the closer close both sides
Yes, but then there is not individual representation in the transaction. There is no exclusive representation contract signed between any party. Which is unlike the relationship with buyer and their agent. And the seller and their agent. The closer doesn’t sign a representation agreement-they work for the title company. And they provide closing service.
So, while two closers each work on behalf of individual parties and represent their interests. They are not bound by the rules of representation that you have with your real estate agent.
We recommend having a closer for your side of the transaction for a greater level of protection. While this is not contractual representation like between you and your real estate agent. It still gives you a layer of defense.
If you need further information, please CONTACT US. The Anderson team is committed to providing you with all the information you need to make an informed decision.
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