Secrets of Successful Real Estate Closings

Copyright (c) 2007 Wee Dilts

Secrets of Successful Real Estate Closings

There is an emerging trend for the use of a Transaction Coordinator. A person who monitors and coordinates the numerous details, deadlines and dates involved with closing a real estate transaction. Your contract could be voided by missing just one deadline and that is devastating for all parties.

You're involved in the details of moving. You need more time and less stress. In my twenty-four 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.

1. What is Transaction Closing Coordination?

It's hiring a professional third party to monitor all the details of closing. The person is a paper manager. Generally, they are a third party with no advocacy relation to either party; however, they are performing their service for the hiring party.

The Coordinator could be:

A real estate broker

A real estate assistant under the supervision of a broker

An attorney

A title person

This person monitors the details, dates and deadlines of the closing. They are not responsible for scheduling appointments or inspections; they simply keep the parties informed of activities that need to be scheduled and deadlines that need to be met.

2. 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 for the closing to occur.

There are often changes and amendments made during the contract term. The coordinator will keep the parties advised.

The key to closing is generally communication between the parties. The coordinator keeps records of telephone, email, mail and fax communication. A transaction log is an invaluable tool if there is dispute between the parties.

3. 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.

They track everything.

They keep a closing log. After closing, a copy of the closing log is provided to the hiring party.

4. Where Can You Find a Transaction Coordinator?

Your best source for hiring such a service would be:

A broker

A licensed assistant trained to coordinate transactions

A title company

An Attorney

When interviewing notice things like:

Experience - Has the person had experience in closing real estate transaction?

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 interested in the money or are they interested in getting the job done?

5. Benefits of Hiring 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.

Secondly, there is a paid paper manager, and someone dedicated to the process.

Stress is a major factor and is not to be taken lightly. A coordinating service will alleviate a lot of stress.

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 strains on you time.

Compliance with the terms of the contract is critical. It is the job of your coordinator 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 should be 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 is an invaluable document if a challenge comes up after the closing.

Hiring a Transaction Coordinator puts a third party in charge of the many details of closing. A good transaction coordinator keeps communication moving between the parties, via email, fax, regular mail and phone. They keep a log of all communication. In the event of disputes, the Contract Closing Log is an invaluable tool.

Good Luck With Selling Your Real Estate