Title Tip – Neutral Party
In the closing process, it’s important to understand that the closing company is a “neutral party” in any transaction. Our responsibility is to make sure that the written agreement (generally a purchase agreement) between the buyers and sellers is executed in a manner that fully carries out that written agreement. At a normal closing we do NOT represent either side of the transaction, but rather we are to assure that the agreement between the parties is carried out correctly.
Because of the role that we are performing, we are to avoid any of the following:
– Verbal changes or directions
– Expressing an opinion – about the property, price, terms, fees etc
– Getting involved in negotiation or conflict resolution
– Interpreting anything in the written agreement that isn’t clear
So when the closing is completed, it is important that the documents we have signed and recorded agree with the written agreement we were provided at the beginning. In doing this we are fulfilling our duty to all parties – buyers, sellers, realtors and lenders.
Disclaimer – this information is NOT legal or financial advice, and should not be used as a substitute for the same. It is offered for informational purposes only. Many different factors can influence the proper course of action for a particular situation. Please seek the advice of a qualified professional for guidance with your specific transaction.