Tennessee Realtor State Practice Exam

Who must ensure that all necessary documents are in order before closing?

1. The buyer's attorney

2. The seller's representative

3. The closing agent

4. The loan officer

The correct answer is: The closing agent

The closing agent is responsible for ensuring that all necessary documents are in order before the closing. This role is critical as the closing agent coordinates the closing process, which includes preparing or collecting legal documents, ensuring compliance with state and federal regulations, managing funds, and verifying that all conditions of the sale are met. The closing agent acts as a neutral third party, facilitating communication between the buyer, seller, and any other involved parties, such as lenders or attorneys. This comprehensive oversight helps to ensure that all aspects of the transaction are documented properly and that all protocols are followed, thus protecting the interests of all parties involved in the real estate transaction. While the buyer's attorney, the seller's representative, and the loan officer each play important roles in the transaction, their responsibilities are focused on advocating for their respective clients or providing the necessary financing. They may provide important documents, but the closing agent is the one tasked with ensuring that everything is in place for a successful and legally binding closing.