A real estate contract can be voided by one party missing just one deadline. The result is devastating for all parties. Many FSBOS wrongly believe once they and the buyer sign a contract it's a done deal. No, No, and No.
The contract is closed when you have a cashier check in your hand from the title company.
In my thirty plus years of real estate experience, I have come to believe that a transaction coordination service is invaluable to your peace of mind and to a successful close. You're involved in the details of moving. You need more time and less stress. There is a trend by for sale by owners to use a Transaction Coordinator.
What is a Transaction Closing Coordinator?
A person who monitors and coordinates the numerous details, deadlines and dates involved with closing a real estate transaction. A professional third party who monitors all the details of closing. The person is a paper and detail manager. Generally, they're a third party with no advocacy relation to either party; however, they are performing their service for the hiring party.
Who can do real estate contract coordination?
The Coordinator could be:
* A real estate broker * A real estate assistant under the supervision of a broker * An attorney * A title person
They monitor the details, dates and deadlines of the closing. They are not responsible for scheduling appointments or inspections; they simply keep all parties informed of activities that need to be scheduled and deadlines that need to be met.
Why is Transaction Closing Coordination Important?
There are more than twenty-five critical dates and deadlines in the average Colorado real estate contract. Think about it, non compliance with any one of these could mean a failed contract. All terms and conditions must be met and complied with before the closing can occur. There are changes and amendments made during the contract term. The coordinator keeps the parties advised. The key to closing is generally communication between the parties. The coordinator keeps records of telephone, email, mail and fax communications. This information is a transaction log. It is an invaluable tool if there is dispute between the parties.
How Does it Work?
The Transaction Closing Coordinator is hired either just before or immediately after the buyer and seller enter into a purchase agreement. The Coordinator will:
* Set up a calendar of dates and deadlines. * Create a tickler file to remind the parties of dates. * Keep a log of all emails, faxes, mailings and phone calls. * Provide a written update report, usually weekly, to the hiring party. * They track everything. * They keep a closing log. After closing, a copy of the closing log is provided to the hiring party.
Where Can You Find a Transaction Coordinator?
Check your area to find out who offers such a service. Likely sources:
* A broker * A licensed assistant trained to coordinate transactions under Broker supervision * A title company * An Attorney
What to look for:
* Experience - Does the person have experience in closing real estate transactions? * Knowledge - Is the person licensed or educated in real estate? * Reputation - Ask for references and check them out. * Commitment - Get a sense of how important your closing is to them.
Are they only interested in their fee or are they interested in getting the job done?
Benefits of having a Transaction Closing Coordinator:
First, there is less stress. Selling a home and moving rank high as stress factors, right up there with the death of a spouse and divorce. Stress is a major factor and is not to be taken lightly. A coordinating service will alleviate a lot of stress.
Secondly, you have a paid paper manager, someone who is dedicated to the process.
Time seems short once you accept a contract. Closing can be as short as a couple of weeks or as long as sixty to ninety days. No matter the time frame, at some point you'll feel like time just ran out.
A coordinating service keeps you alert to dates and deadlines which eases the strain on your time.
Compliance with the terms of the contract is critical. It's the coordinators' job to keep you informed so you don't miss important dates and deadlines.
Closing logs contain records of all calls, mailings, emails and faxes related to the closing. You receive a copy at closing or you can obtain information as needed during the closing. Written documentation of a transaction is essential.
Weekly reports are provided by your Coordinator. So you know what's coming and what's has been done.
A copy of the closing log will be provided for your records. It's an invaluable document in case there are challenges after the closing.
