Question

So far, we've seen the buyer and seller as they prepare for closing, but what four things does the closing agent do to prepare?

a. perform title search
b. Obtain seller's loan payoff amount
c. distribute closing proceeds
d. prorate property taxes
e. Prepare closing statements
f. File form 1099-S

Answer 1

The closing agent prepares for closing by performing a title search, obtaining seller's loan payoff amount, prorating property taxes, and preparing closing statements.

Step-by-step explanation:

The closing agent, also known as the escrow officer, performs several important tasks to prepare for closing on a real estate transaction. These tasks include:

1. Performing a title search to ensure the property's title is free of any liens or encumbrances.
2. Obtaining the seller's loan payoff amount to determine the exact amount that needs to be paid to satisfy the seller's mortgage on the property.
3. Prorating property taxes between the buyer and the seller, so that each party pays their fair share based on the time of ownership during the tax year.
4. Preparing closing statements, which outline the financial details and allocations of funds for the transaction.

It's important for the closing agent to handle these tasks accurately to ensure a smooth closing process and transfer of ownership.