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Mortgage loans are generally "closed" by a third party called a "closing agent," whose function is to coordinate and distribute all paperwork and funds according to instructions mutually agreed upon by the buyer and the seller. As a result, the "closing" process on a home mortgage involves "settlement" of all conditions of the sale and "collection and disbursal" of all funds on behalf of both buyer and seller.
The closing agent ensures that the instructions of all parties and the lender are fulfilled and that ownership of the property is transferred properly from the seller to the purchaser. A nominal fee, based on the purchase price of the property, is charged by the agent's company to perform this service.
In the State of Georgia, the closing agent must be an attorney who represents the lender. Closing a real estate transaction requires a tremendous amount of technical knowledge and practical experience. This is why loans are closed by an attorney.
Places the order for title insurance.
Receives funds from the buyer, seller and/or lender.
Prorates and pays property insurance, taxes, rents, etc.
Disburses funds for title insurance, recording fees, real estate commissions, lien clearance, etc.
Prepares a final statement for each party, indicating amounts to be disbursed for services and any further amounts necessary to close the sale.
Prepares and records deed and loan documents, delivers the deed to the buyer, loan documents to the lender and funds to the seller.
Note: Payment of closing agents fees can vary based on terms of purchase and sales agreement and permits of some specific loan types.
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 E-mail Mike at mike@mike-robinson.com |
Mike Robinson, REALTOR® CRS, GRI, CSP, ABR, CRP MIKE ROBINSON, INC. RE/MAX AROUND ATLANTA RESULTS 401 Highway 74 North Peachtree City, Georgia 30269 Office: 770-631-3305 Toll-Free: 800-955-5596 Fax: 770-631-4712 Voice Mail: 770-631-3334 ext. 316 |
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The information contained herein is believed to be correct, but is subject to errors, omissions and changes.
Copyright © 1997 MIKE ROBINSON, INC. All rights
reserved.
Revised: 08/25/09.
