Georgia Mortgage FHA

… lender.

Ouch. I know most people really do not know this especially sellers and buyers it seems. The closing agent’s fiduciary (not pronounced fudooshree as I hear so often) responsibility is to the lender to make sure all of the documents are fully executed in the right manner and that the necessary recordings are performed to make the exchange legal. Not all states have the same rules and regulations and I’m definitely writing from my own little world but all states have regulations and it is the closing agent’s job to be intimately familiar with them.

I know some states have multiple attorneys at the closing table along with multiple agents and … sounds like a big cluster party – but it happens.

If you are a buyer or seller and you think the closing agent is there to represent you I am sorry. They are not. In most states the only representation you will have at the closing will be your real estate agent. It is, after all, their sworn duty to help you through the process and the last and one of the most important duties they have is to make sure you understand what you are signing.

It is not their job to negotiate your loan or your insurance unless it is one of those really odd circumstances where by some loop in the law they are all three agents!(Agents this is not a slam on you it’s an exhortation to the client to get smart on their own and know what they are doing.) As a buyer bou need to have the best education you can get about your finances and asset protection.

As a seller you may think it’s over once you get the check and walk away. Really? Are you sure that’s the law in your region? The closing agent isn’t going to help you there you will need to have your own representation. That’s where your licensed real estate agent comes in. If you are going FSBO you are on your own. If an unlicensed representative (called bird dogs or locators) are involved you could be opening yourself up for all sorts of issues including mortgage fraud. But the closing agent isn’t going to tell you this. They are going to report you to the lender.

It may seem “cheaper” to not have professional representation and while I don’t necessarily agree that a seller nets more by going with a licensed professional (even though the may gross more) I do believe it is an unnecessary exposure to a liability you probably cannot afford.

As a lender we are more suspicious of loans which do not involve a licensed real estate agent. Mostly because they have something to lose and someone to answer to. They also should have insurance called E&O (Errors and Omissions) as well, usually, as professional liability.

In this sue happy world it is difficult for me to see why every buyer and seller do not use the services of a licensed and insured real estate professional.

Pee Ess – you can easily verify the status of a professional agent’s license by visiting the website for your state’s Real Estate Commission. I recommend you do so!

— admin