Closing agent

Definition

The neutral party that holds the money and records the deal at closing.

Why It Matters

Usually a title company or an escrow agent, sometimes the buyer's attorney, and they are the reason the money and the documents move at the same moment rather than on trust. They also produce the settlement statement every party signs, which is the document that proves who paid what. Agree who is doing this and who pays their fee early: it is a small line that gets negotiated late and badly when nobody raised it.

In numbers: A closing agent on a $1.2M acquisition typically charges $1,500 to $3,500, and the fee is commonly split or assigned to the buyer in the purchase agreement.