You’ve signed the contract. The hard work of finding the right house is behind you. Now, it’s time to move forward with the closing, that complex legal process of changing property ownership from one party to another.
That means choosing who handles the entire transaction. Does it have to be closing agent vs title company? Or can there be a middle ground?
That means choosing who handles the entire transaction. Does it have to be closing agent vs title company? Or can there be a middle ground?
Let’s back up a little and look at what each does and then you can decide for yourself the best route.
What Does a Closing Company Do?
The work of a closing agent is narrowed to just the financials for the closing of the property.
Usually, a closing agent is employed through a firm such as a real estate company.
They do not perform any of the duties related to title insurance.
Is the Title Company the Closing Agent?
It can be. Some title companies like Lilly Title & Settlement, expand their roles to provide real estate closings as well as providing title insurance policies for buyers.
Besides offering title insurance for the buyer, we review real estate contracts ensuring their accuracy and consistency by flagging any errors we find.
The documents we work with include financials for the sale of the house, commission and payment to the seller, taxes, and other fees.
The advantage of a full service agency is that everything related to the transaction of the property is under one roof which makes the transaction smoother and easier.
Closing Agent vs Title Insurance: Which One is Better?
One is not better than the other. As far as the actual closing, both the title agent and the closing agent perform the same functions.
The question becomes do you want to add yet one more business to the long list on the closing document?
It can potentially take more time with back and forth between the companies, lender, and the two parties involved in the transaction.
The question becomes do you want to add yet one more business to the long list on the closing document?
It can potentially take more time with back and forth between the companies, lender, and the two parties involved in the transaction.
What Other Parties are Involved in the Closing?
Besides an attorney, closing agent and/or title company, there are also the real estate agents, appraiser, maybe a surveyor, if required, and the lender.
A pest inspection company as well as a home inspection company can also be involved in the transaction. Lastly, you’ll also need an insurance agent to insure the property.
By using a full service agency which is at the center of the entire transaction, you help to streamline the process so that it runs more smoothly.
A pest inspection company as well as a home inspection company can also be involved in the transaction. Lastly, you’ll also need an insurance agent to insure the property.
By using a full service agency which is at the center of the entire transaction, you help to streamline the process so that it runs more smoothly.
How is the Closing Company Paid?
Money is escrowed to cover the closing fee. The fee is determined by the sale price of the property.
Choose an Experienced Closing Company
If you’re trying to decide, closing agent vs title company, close that argument by choosing a full service agency. Get all questions answered in one place. The sale of your home is centralized, and with an experienced company, the process will go much easier!
Lilly Title & Settlement is a full service title and settlement company in Staunton, VA. We’re woman-owned and have been in the title and settlement business since 2005. Learn more about us here.
Lilly Title & Settlement is a full service title and settlement company in Staunton, VA. We’re woman-owned and have been in the title and settlement business since 2005. Learn more about us here.
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