As a transaction coordinator (TC), you hold a pivotal position in ensuring the seamless closing of a real estate transaction. As the closing date approaches, your responsibilities intensify to guarantee that every necessary document is meticulously gathered, prepared, and submitted to the relevant parties. TCs act as the conduit between buyers, sellers, agents, and other stakeholders. Therefore, your role is to ensure that all parties involved are aligned and facilitate a successful real estate closing. As an additional service, it’s not uncommon for TCs to also provide closing checklists to buyers and sellers, further streamlining the process. With this in mind, let’s delve into the essential tasks you’ll need to tackle in the 10 critical days leading up to closing.
1. Schedule the Closing
Initiating communication with the title company, buyer, and seller is the first step. Since the pandemic, flexibility in location and format has become more common, with options like e-closings and curbside closings emerging. Key individuals expected to be present include buyers, buyer’s agents, sellers, listing agents, and escrow officers.
2. Arrange Final Walkthrough
The final walkthrough serves as a crucial last step in the real estate transaction process, providing buyers with the opportunity to verify that the property is in the agreed-upon condition before closing. Timing is essential for this inspection, ideally taking place as close to the closing date as possible to minimize the likelihood of any new issues arising.
Collaborating with the real estate agent and clients, the transaction coordinator (TC) coordinates the scheduling of this inspection. It’s imperative to confirm the time and location of the walkthrough, ensuring that both buyers and sellers are available to attend if necessary.
During the final walkthrough, buyers should pay close attention to several key factors to ensure the property meets their expectations. This may include:
- Checking that all agreed-upon repairs have been completed satisfactorily.
- Verifying that all fixtures, appliances, and systems are in working order.
- Ensuring that the property is in the same condition as when they made their offer, aside from normal wear and tear.
- Inspecting for any signs of damage or unexpected changes since their last visit.
To assist buyers in conducting a thorough final walkthrough, TCs can provide them with a comprehensive checklist outlining essential items to inspect.
3. Collect Repair Documentation
If repairs were negotiated, the transaction coordinator (TC) must gather proof of completion. This includes itemized invoices, receipts for materials, work orders, and before/after photos. You’ll also want to ensure compliance with the contract terms and communicate any discrepancies to relevant parties promptly.
4. Confirm Compliance Paperwork
In this step, you’ll review all compliance paperwork to ensure it meets regulatory requirements and is complete. If any additional documentation is needed, follow up promptly to avoid delays in the closing process. Examples of compliance paperwork include various forms like purchase agreements and property condition reports, disclosure documents such as lead paint disclosures, and certifications confirming compliance with specific regulations like energy efficiency certifications. Part of your job as a Transaction Coordinator is to conduct a thorough review and address any deficiencies promptly.
5. Submit Commission Disbursement Authorization (CDA)
As you prepare the transaction for closing, it’s important to make sure that you obtain the Commission Disbursement Authorization (CDA) from the agent’s brokerage. As well as submit it to the designated parties handling the closing. Don’t forget to double-check that all details regarding commission disbursement are accurate and up-to-date. Make sure that the CDA is submitted on time to ensure that all parties receive their rightful commissions.
6. Check In with the Lender and Title Company
As the transaction coordinator, you should proactively check in with these key stakeholders to confirm receipt of all necessary documents and information. This ensures that the file is complete and meets the stringent requirements set forth by both the lender and title company.
You must also diligently review the documentation to ensure it complies with the specific standards and regulations mandated by the lender and title company. Make sure to promptly address any discrepancies or outstanding issues to prevent last-minute complications that could potentially derail the closing process.
Addressing concerns or resolving issues in advance not only helps mitigate risks but also fosters a sense of confidence and trust among all parties involved. By maintaining a proactive and collaborative approach to communication with the lender and title company, you play a crucial role in facilitating a smooth and successful closing, ultimately ensuring a positive experience for all parties.
7. Send Client Closing Details
As a TC, you will provide clients with comprehensive details regarding the closing appointment. Additionally, include instructions regarding the documents they need to bring, such as identification, proof of insurance, and any required financial documents. This includes specifying the date, time, and location of the closing, ensuring that they arrive promptly and at the correct venue. Anticipating common questions clients may have, such as what to expect during the closing process or how to handle certain scenarios, allows for the proactive provision of answers, alleviating potential confusion or stress. By empowering clients with clear and thorough instructions, TCs contribute to a smoother and more confident closing experience, fostering trust and satisfaction throughout the transaction.
As the real estate closing date approaches, the pressure mounts to ensure that every aspect is handled with precision and care. From scheduling the closing to meticulously coordinating final walkthroughs and gathering essential documentation, TCs are the linchpin that holds the entire process together.
As outlined in this action plan for the crucial seven to 10 days leading up to closing, success hinges on proactive communication, meticulous planning, and unwavering attention to detail. By initiating timely communication with all stakeholders, organizing critical appointments, and confirming the completion of vital tasks such as repairs and compliance paperwork, the TC lays the groundwork for a seamless and successful closing.
Aspiring closing coordinators must recognize that their role extends beyond merely checking items off a list. It’s about curating a flawless and memorable closing experience for all parties involved. By leveraging tools like ListedKit, TCs can streamline their workflow, receive timely reminders for approaching deadlines, and effortlessly communicate with third parties. Get started for free today!