SETTLEMENT & CLOSING SERVICES
SETTLEMENT / CLOSING SERVICES
Understanding what a Settlement, Closing agent does:
- A Settlement Agent brings two or more parties of a transaction together, independent of the parties to provide a conduit where all parties may trust that each of them are represented equally.
- The Settlement Agent coordinates a closing with an exchange property / merchandise for money. The Seller provides a title for an RV / motorhome or boat sending it to the Settlement Agent, the Buyer sending his/her money to a settlement account.
- Closing (or Settlement) is the final step in executing a transaction.
The closing date is set during the negotiation phase, and is usually 1-2 weeks after the offer is formally accepted. On the closing date, the parties consummate the purchase contract, and ownership of the property is transferred to the Buyer. In most jurisdictions, ownership is officially transferred when a title from the Seller is delivered to the Buyer.
Several things happen during Closing:
- The Buyer (or his/her bank) delivers funds (generally in the US, a Settlement check or wire transfer) for the balance owed on the purchase price. The balance may include a total of or balance of down payment, in addition to the loan proceeds.
- The Seller signs the title, when Seller is not present a Power of Attorney may be used by Settlement Agent to turn title over to the buyer...
- The Seller receives a wire or check for the proceeds of the sale, less any loan payouts.
Settlement companies get involved when two parties are not able to provide title and cash transactions simultaneously. A Settlement Company (rather than a lawyer or other trusted party) holds the money and the signed title, and arranges for the transfer. This is primarily so the Seller can give up ownership of the property, and the buyer can hand over the payment, without both parties having to be present at the same time. Settlement ensures an orderly transaction, or if something goes wrong, an orderly termination of the agreement.