Oregon 30-Hour Real Estate Law Practice Test

Who is responsible for managing documents and funds at the closing?

1. The real estate agent

2. The closing agent

3. The title company

4. The lender

The correct answer is: The closing agent

The closing agent plays a crucial role in the real estate transaction process by managing documents and funds during the closing. This professional is responsible for ensuring that all paperwork is completed and accurate, overseeing the signing of documents by both the buyer and seller, facilitating the transfer of funds, and disbursing the necessary payments to the relevant parties. The closing agent acts as a neutral party in the transaction, ensuring compliance with local laws and regulations while coordinating all aspects of the closing process. Their expertise helps to prevent errors and ensures that the transaction is completed smoothly and efficiently. While other parties such as the title company and lenders are involved in the process, their functions differ from that of the closing agent. The title company, for instance, provides title insurance and ensures that the title is clear, while the lender primarily focuses on providing financing for the buyer. The real estate agent, although helpful in facilitating the transaction, typically does not manage the closing documents and funds directly. Thus, the responsibility for managing these critical elements lies squarely with the closing agent.