Consumers may need a settlement agent at closing for several reasons:
- Legal expertise: A settlement agent is a professional who is trained and licensed to handle the legal aspects of real estate transactions. They ensure that all documents are properly executed and recorded, and that all legal requirements are met.
- Coordination: A settlement agent coordinates the closing process, which can be complex and time-consuming. They work with all parties involved, including the buyer, seller, lender, and title company, to ensure that the closing process goes smoothly.
- Disbursement of funds: A settlement agent disburses the funds from the sale of the property, ensuring that all parties are paid in a timely and accurate manner.
- Title issues: A settlement agent will review the title of the property and ensure that it is clear and that there are no outstanding liens or judgments against it. They will also ensure that the title is properly transferred to the new owner.
- Closing documents: A settlement agent will review and explain all closing documents to the buyer, including the purchase agreement, mortgage documents, and any disclosures.
- Provide advice: A settlement agent will provide advice and guidance to the buyer to help them make informed decisions during the closing process.
- Compliance with laws and regulations: A settlement agent will ensure that all laws and regulations regarding real estate transactions are followed, including tax laws and regulations.
- Protection of the buyer: A settlement agent will protect the rights of the buyer during the closing process, ensuring that the buyer's interests are represented.