Real Estate Professionals and Their Role in Your Transaction
One of the most important things to remember concerning a closing is the role of each party at the table. Whether a purchaser or seller, it’s important to note that a closing attorney or agent does not represent you. A closing attorney’s role is to ensure all requirements of the mortgage company have been met and to ensure that no title issues exist that could keep your mortgage company from holding a first lien on the property.
Therefore, more often than not, a closing attorney represents the mortgage company. Ninety five percent of the time this presents no real obstacle to purchaser or seller as the attorney’s job is to make sure title is clear of such issues as judgments, bankruptcies, or liens. This ensures there won’t be any issues which could cloud the purchaser’s title at a later time. The closing attorney also insures the seller has met all requirements that would lead to a dispute or lawsuit in the future.
The same applies to your mortgage company representative. Their role is to sell you a loan that fits your specific situation. They have certain statutory requirements they must meet (providing a good-faith estimate, Truth-In-Lending disclosure, etc.). However, note that ultimately their role is the same as any other person with a product to sell. If you are unsure of certain statements made to you by the mortgage company representative, contact a real estate attorney.
Agents are another matter. In Alabama, an agent can represent a purchaser, seller, or both in a dual agency relationship. It’s important to understand what role the agent you are dealing with fills and where that agent’s duty lies. This is important when negotiating a purchase price as you need to be sure to keep your cards close to your vest if there is an issue regarding your sale you don’t want just anyone to know (need to sell quickly, an outstanding contingency agreement, etc.).
One silver lining from the ongoing mortgage crisis is the fact that for the most part those mortgage companies who dealt with purchasers in a less than forthright manner have been chased out of their market. However, it is important to remember you have the power of the market and can contact as many mortgage lenders to get a true sense of the available rates and programs. Avoid allowing repetitive checks on your credit. An excessive number can have negative consequences on your credit rating and be counter-productive. A reputable mortgage lender should be willing to discuss your options without running your credit. However, note that the amount of information they can provide without a credit check is limited as some programs and rates require a certain credit rating.
Real Estate Professionals and Their Role in Your Transaction
Posted by: Chesley Payne
July 21, 2008
One of the most important things to remember concerning a closing is the role of each party at the table.
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