Oregon 30-Hour Real Estate Law Practice Test

Who is responsible for closing on the cooperative brokerage agreement?

1. The agents for the buyer and seller

2. The title company

3. The lender alone

4. The seller only

The correct answer is: The agents for the buyer and seller

In a cooperative brokerage agreement, the agents representing both the buyer and the seller share responsibility for ensuring that the transaction is closed efficiently and effectively. This collaborative effort involves coordinating with one another to facilitate the process, which includes negotiating terms, handling paperwork, and making sure all agreed-upon conditions are met before closing. The successful closing of a real estate transaction requires the involvement of both buyer’s and seller’s agents to manage their respective client's interests. They must work intricately with each other to gather necessary documents, communicate with involved parties, and ensure a smooth transfer of ownership. By working together, they help achieve a mutual understanding of the transaction's intricacies and facilitate the closure accordingly. While other parties like the title company and lenders play essential roles in the closing process, their responsibilities are more supportive than direct. The title company typically handles the technical aspects of the transaction, such as preparing the title search and issuing title insurance, while the lender's focus is primarily on funding the transaction. The seller, on the other hand, has a vested interest in the closing but is not singularly responsible for it. Thus, the responsibility for closing in a cooperative brokerage agreement generally falls to the agents for both parties involved.