Closing agent or Title insurance agent?

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Controversy arises between the functions of a Closing Agent and an Escrow Agent

The controversy arises between the roles or functions of a  Closing Agent and an Escrow Agent has escalated from slight misunderstandings between the parties involved in a transaction to institutional levels where they apparently are not yet prepared or sufficiently updated to be able to establish legally what are the responsibilities of today called Closing Agencies or Closing Companies. Who regulates the economic activities carried out by means of these companies that work differently to what we know today as Title Companies.

closing agent vs escrow agent

In the present article we will discuss the following questions:

  • What is a Title Insurance Company and what are its functions.

  • What is a Escrow Company and what is its role in a transaction

  • Whats a Closing Source Company and what's its part in the transaction

  • What other terms refer to a closing agent and his or her functions

Closing agnet or title insurance agent

Heads up when a Title Insurance Company owns the escrow officers, closing agents and the Law Firm all working together for the same company.

The role of the intermediary in a negotiation is the role of having an impartial judgment between two parties that agree on a transaction. In this way a buyer of a property is in the middle of a situation of disadvantage because all the parties that will carry out the legal agreements from collecting documents, issuing insurance policies and made payment, either by deposit or Bank transfer everything is completely in charge of the same company. In this case the buyer should refuse to continue any negotiation with said company.

Escrow agent or closing agent which is better

A insurance department license might not be the protecting shield you expected.

If the title company and its closing representative, even if they have a legitimate Department of justice of USAofficial license issued by any insurance regulatory department in the USA, to grant the corresponding service, the client should in all cases be aware that such license can be granted to anyone who has completed the courses and passed the exams issued by the same title companies for which the individual might contemplate working in a future.

History and prestige an always added value that grows over time

Specifically, we mean that the history of a insurance company or a real estate agent can be conclusive in the final outcome of a transaction. Which means that they could trust even more about the history and accumulated experience of your closing agent than of the actual real estate or settlement agent even when you have that license.

The title insurance and its responsibility in a transaction

The title insurance company has a very important role in the purchase of real estate and it is the function of protecting those who buy or acquire a property.

The Insurance company should protect your from:

  • The seller does not possess the original and legal title to the property

  • Prevent and protect against future claims by alleged owners

  • Secure the buyer and his probable heirs of the property for life while owning the property.

  • Protect and defend the buyer against lawsuits and fully cover the costs of legal proceedings after the lawsuit.

  • Preventively ensure that no lawsuit action can arise in the future through an exhaustive investigation of property titles throughout history.

  • What is a Escrow Company and what is its role in a transaction

  • The Escrow services or Escrow agencies commonly confuse the public with the Title Insurance Companies but in reality they are very different entities in their structure and function in a transaction.

As we have explained already, what the functions of a Title Insurance Company are,  we only need to assert what  the functions of a Escrow Agency are.

This entity, regarding its financial resources, is much smaller than a Title Insurance Company, and its function specifically is to initiate, maintain and close a transaction and not that of  issuance of title insurances. However, it is a recent trend in which the Title Insurance Company also provides Escrow Services at the same time supposedly for a greater control of the processes involved and speed up the legal procedures quickly and efficiently for the convenience of the client.

What is a Closing agency or Closing Company and what's its role

What is a Closing agency or Closing Company and what's its role

Once we have recognized the main functions of a title company and an Escrow Agency, we will now find it much easier to understand the role of a closing company within a transaction.

The fundamental role played by a Closing Agent is impartial in order to carry out an exhaustive review of all the processes that involve a formal and constant relationship with the real estate agent and the lawyers who work within the same title company.

 

Closing agents

The function of the closing agent is to collect legal documents, corroborate the data and the conditions of the insurance policies and the history of the titles of a real estate property or of any type. The closing agent coordinates the correct and punctual execution of each one of the procedures or legal procedures to present them to the parties involved in the transaction.

The closing agent is an intermediary factor just hired by the buyer or seller of a property and thus carry a comprehensive and reliable second review of all the documentary material that the realtors already carry on their part.

Closing agents or Brokers

What other terms refer to a closing agent

Now a days the term Closing Agent continues a semantic evolution and grammar which is a need of companies and independent service providers to avoid possible confusion with the terms Realtors or Real Estate Agents and so Settlement Agents which we have already previously clarified about its functions in a transaction.

Modern companies that currently provide transaction closure services have chosen to promote the term Transaction Coordinator more favorably, since, by antonomasia, it inspires the public audience with a clear idea of help and advice, almost of the consulting type.

Categories: Business

3 Comments

Lori · October 22, 2018 at 3:24 pm

Thanks, it’s quite informative

Vlad Vega · August 7, 2019 at 8:29 am

Thanks for useful article! ID Mortgage Broker

Timeshare Advisor News · September 6, 2018 at 9:30 pm

[…] following is a list of Escrow & Title insurance companies reported and filed by BBB (Better Business Bureau)  that in fact have stolen money from their […]

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