One should also understand that the attorney does not represent any particular party during the closing. The attorney represents all parties without bias to a specific party. The attorney is supposed to ensure that the buyer’s and the seller’s interests are expressed in the contract accordingly. The buyer chooses the attorney, though both parties ultimately pay a small fee for their services. If either party cannot attend the settlement in person for any reason, they can be represented by someone else through the power of attorney. When selling the house, one should also monitor the amount of loan payoffs. These are supposed to be higher with accrued interest, so something may be wrong if the numbers seem off. The escrow company usually handles most of the paperwork and legal issues involved in a settlement. It is an independent organization whose responsibility is to oversee the change in ownership of houses. An attorney can also manage the handover. However, different states have different rules regarding escrow companies and attorneys. A seller needs to understand the processes until the closing. When the purchase contract has been signed by all the parties involved, the escrow company responsible for the handover takes charge of the whole process. The buyer goes ahead with any required tasks, such as inspecting the house, while the seller is supposed to work entirely with the person inspecting the home and the appraiser from the bank. Once that is complete, the buyer can inform the person selling the house, the escrow company, and the lender that everything has been completed. At this point, the seller contacts the lender so that they can arrange a mortgage payoff. He gives the lender the name of the escrow company, which is supposed to come up with the closing statements.
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