KnowYourClosing.com - Who's Involved In the Process

Who’s Involved In the Process

During the closing process, your real estate agent may arrange for a title search. He or she will also arrange for meetings between the buyers and the sellers so that the transaction details can be discussed and agreed on before closing. Sometimes real estate agents also assume responsibility for the closing (acting as settlement agents) if the lawyers, lenders or escrow officers don’t do so (though an attorney's involvement is not required in all states).

Your mortgage representative is responsible for all the details of your loan, from application through closing.

A title insurance professional examines the property's ownership history — making sure the title will transfer smoothly — and issues the title insurance policy.

A real estate attorney (not required in all states) is primarily concerned with protecting your legal rights. He or she sees that the title is transferred properly, and can answer questions about your contract and the deed.

A home inspector, surveyor and termite inspector may be required to ensure the integrity of the property. The home inspector will go over every facet of the property in detail, and will most likely give you a report that outlines what problems may occur and the current condition of the home. The surveyor will check the actual dimensions of the lot, and the termite inspector will evaluate the home for damage and create a certificate, which is often needed for your mortgage.

A homeowner’s insurance agent may inspect your home in order to process the property and casualty insurance coverage for your new property, often referred to simply as “homeowner’s insurance.” (You’ll likely need this coverage to qualify for a mortgage.)

A settlement agent (or closing agent or escrow officer) makes sure everything is signed and that the appropriate documents are recorded, and that the funds collected for various fees and expenses are properly distributed. The settlement agent is responsible for satisfying all the title conditions, paying the seller and the previous lender, obtaining money from the buyer and new lender, obtaining recording fees and taxes for the government and filing the paperwork at the local courthouse or county recorder’s office.

Typically, during the closing itself, the closing or settlement agent and you – or someone representing you – are always present. Often, the seller, or someone representing him or her, may be present too, and real estate agents for you and the seller might attend. A representative of the lender might also attend.