Re: Wholesaling Closing Agent Question - Posted by Jim Kennedy
Posted by Jim Kennedy on August 24, 2002 at 18:45:03:
Here again is one of those questions that are difficult to answer without knowing some additional information.
Are there agents involved? A listing agent representing the seller? A buyer’s agent representing you? Or are you dealing directly with the seller?
Is the seller an individual or an institution? You mentioned “the bank’s attorney”. Are you referring to a bank that owns the property after foreclosure or are you referring to a bank that will be issuing new financing for your end buyer?
Where you are located, or more accurately, where is the property located? Why? Because MANY aspects of real estate are governed by State law and local custom. Including who selects the closing agent.
If agents are involved, frequently the listing agent convinces the seller to counter with a closing agent that is conveniently located for the listing agent and one that the listing agent is familiar with.
If the seller is an institution (lender that has foreclosed on the property), frequently the institution will insist on a closing agent they use exclusively.
Micheala raised another good question? Who’s paying for the closing? Frequently this is dictated by local custom. It’s been many years, but if I recall correctly, in California the custom of who pays for what varies from Southern California to Northern California. Michaeala also mentioned that the closing agent represents the mortgage company. That’s not the case here in Texas. Here the closing agent is a neutral third party that represents neither the seller, the buyer, nor the mortgage company.
Joe Eckburg suggested that you counter with you choosing the closing agent. He’s of the opinion that the seller won’t let the deal crater over this issue. He may be right. However, I’ve seen deals blow up over a lot less. Depending on the circumstances of your deal, I’d probably approach this issue a little differently. Rather than a counter, I’d simply find out who the seller wants to use as closing agent and then, as Joe suggested, find out if the closing agent will agree to (and is competent to) coordinate a simultaneous closing. Tread carefully here. At this stage, you might not want the seller to know that you’re planning on wholesaling the property.
Best of Success!!