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Should Realtors attend Closings?

I have heard some of my fellow Realtors say they don't attend their clients'closings because they fear their buyers might not want them to know any financial details. I've heard brokers caution agents to stay away from closings to reduce liability.

I don't get it. Walking buyers through a real estate transaction is like a doctor's exam. I'm going to see them naked. (financially speaking, of course). Liability? We are exposed to liability whatever we do. The key is to be cautious. I will refer all questions in regard to the HUD, or title to the closing agent, or title officer.

I make it a point to attend all my clients' closings. After ushering them through the transaction from start to finish, why would I want them to sit at the closing table unaccompanied? I want to be at their right side and I'd love to see their lender sit to their left. Okay, I'm dreaming here. I've only had one closing in which the loan officer showed up.

After all the documents are signed, there is a special mood present, between relief, happiness and anticipation, that I wouldn't want to miss. It's a good opportunity to give my clients their closing gift and to remind them that it's only the transaction that has come to an end, not our relationship.

Sandy Nelson
Realtor for Olympia Area Real Estate
www.sandynelsonrealestate.com

Riley Jackson Real Estate Inc.

Posted by Sandy Nelson Realtor® Olympia Real Estate on 07/30/2007 11:13 PM

Comments (52)

real estate transaction, sandy nelson, olympia real estate, riley jackson

This post has been included in Washington Information Thurston County, WA Information
Post is included in group: Puget Sound - WA Real Estate

52 Comments on Should Realtors attend Closings?

JUL

2007

Sandy,

Thanks for the post. I cannot imagine not being at the closing. Both buyers and sellers are okay with this in your area?

I second that motion. Our market is a second home market, so I largely don't get to be at closings because they are mail-aways. If I'm lucky, I have one here in North Carolina. You better believe I'm there.

I've never heard of this. It seems odd to me as we are knee deep in the transaction already. Not sure how staying away from a closing would keep us out of some sort of unforeseen trouble that just happens to be relevant to the closing alone. Would love to hear more about this, because I am like you, I feel I owe it to my client to be there.

I never miss a closing if at all possible. I have heard the argument about liability, but lets get real. Doing a real estate transaction has liability and I choose to provide the absolute best service.

I also have been to a real estate continuing ed classes where it was recommended to never attend closings because of potential liability. I think attending the closing with your buyer or seller is the appropriate thing to do. You have worked with these people getting the deal this far, it doesn't seem right to skip the closing. Sometimes questions still come up even at the closing table. I make it a point to attend every closing I am able to. I have had a few out of state buyers who did courtesy signings. I had one closing where the lender also attended.

Not going to a closing seems absurd to me. I concur with all other comments. Realtors should always attend the closing unless it is impossible to attend. If for nothing else, we can offer moral support and help our clients with any last minute jitters that may occur. Especially if you have first time homebuyers. Sometimes they just want someone there to "hold their hand".

I mean, can you imagine being a first time home buyer. You've worked for several months with your Realtor and they abandon you at the last minute! Yikes!

Not only do I attend - we don't call them closings - we have celebrations - here' s an article I posted after an amazing one on Friday - feel free to delete this is you don't want this link in your post - somehow I thought you could relate! Have a good one!

Clearwater Florida Real Estate Agent explains We don't do Home Closings - We do Celebrations!

I always attend, and make sure that when it's in my power, the buyers utilize a lender that ALSO attends. Although I like to be there to check over the details and offer emotional support, I think that the lender's presence is imperative.

Sandy - I just assumed it was something everyone did...I can't imagine not accompanying my client at closing though

JUL

2007

There's no way I'll miss a closing...I'm there with my file and don't say anything until there is a mention of a discrepancy whether it's how much is supposed to be dispersed to the chimney sweep guy or how much the buyer asked back at closing...closing could be a deal breaker real quick so I have to be there to see everything first hand...I'm not real good at letting 3 months of work go out the window for a minor detail

You and I think the same. Start to finish and then some. Boy, I could get going on this one. I sincerely don't get agents and lenders who don't go to their closings. The first time I meet with my clients, I want them to truly know how important they are to me (not the commission check at the end). I tell them "I will be here for you every step of the way" and that is meant quite literally. If they have a mental breakdown midway through, let's take a break and meet for lunch and talk about it. I have a checklist 2 pages long for my personal commitments that I need to meet for my clients. If that last line of "settlement date" is missing, with me not there, I wouldn't feel like I've completely taken care of my client. On Friday I had a closing with a client who 1 year ago purchased FSBO, had no agent, never met the lender and closed with a stranger at title and wondered "what the heck happened". She looked at me and the lender on Friday for her new home closing, with tears in her eyes and thanked us, told us how much it meant to her to have us both there and gave us both a big hug. That makes it all worth while. It's a settlement. Settlement of worries, fears, and the what ifs. Settlement of tummy tickles and complete stress. And an open door to a new home and a lifelong friendship.

I too attend closings. I agree that as far as liability, well, why even be involved in real estate if you are going to be that paranoid? A broker from my past explained that #1--Someone has to take the Earnest money check to closing (silly, that can be done prior to closing and handled in a variety of different ways), #2--That's when you pick up the commission check (not lately, I have had closings with funding not complete yet). My reason for attending is in agreement with above reasons, plus the fact that sometimes settlement statements are not ready until after we have been sitting at the closing table waiting for them.

Yes, I have noticed a few things that were incorrect causing settlement statements to be REdone.

On the other hand, a client's closing should never be scheduled around our ability to attend.

I can't imagine not being at a closing. As far as I'm concerned, the transaction is not over until the papers are signed, funds are distributed, hands are shaken, and keys are transfered.

I wish we had a formal closing meeting here but its all done ahead of time and we hear of the posting via a phone call.

I attend closings whenever possible, and bring the whole file with me. I cannot count the number of times I was able to get something changed on the HUD-1 because it was wrong. Sometimes things happen fast and we don't get the statement in time to correct it. Invariably it works out for the better that I am present. Very few lenders in my area attend closings. We do our closings at the title company in this state. The title agents have no idea what the client is like and sometimes I can head off a bad situation before it gets out of hand - especially with difficult clients.

Seems there could be more liability by NOT attending.

It's so hard to imagine not attending a clients closing. I believe I missed one, years ago while I was on vacation. I had a co-worker attend for me, and my co-worker was wonderful to my clients (as I knew she would be) and chatted with them on the phone to get to know them a bit prior to the closing.

I tell all of my clients that they are stuck with me through it all and afterwards. I want to be their agent for life, not for the moment.

To All,

It's great to see that so many of you feel the way I do about attending closings. It shows care and dedication. I appreciate all of your comments and your company on AR.

Sandy

AUG

2007

Sandy - I gave you a 5 on this one! Yes, you've hit the nail on the head. In fact, I am available for all my clients closings as well. I don't attend unless they want me to. But I block the time off on my calendar and am available for any calls.

Absolutely and without exception, I attend closings. Unless my client were to specifically request that I not be present (hasn't happened yet), I want to be there with explanations and to proof the figures. I have yet to meet the client who has been anything other than appreciative for my attendance.

AUG

2007

I was taught by my first Broker that should I attend a closing, I was to keep my mouth shut! Anything I said to my clients at a closing table could be considered binding and I could be found guilty of performing services of an Escrow agent without a license.

For that reason, I meet my clients at the door when they go into the closing appointment, but I don't go in.

I attended all closings early on but witnessed troubles for other agent doing the same thing. There are too many questions that come up during a closing. Even a nod of the head can get you in trouble. I'd prefer to show up at the end with a celebratory latte.

I do not attend closings, but I will review the HUD1. If anything looks amiss, I will speak to the title company. I do like to prepare my clients for the closing, but I try not to attend unless requested.

AUG

2007

Sandy, Good thoughts and good info.

Over the years, I have been to hundreds of closings. The only time I do not is when the client and I have worked on several prior transactions and the trust level is high. What is really scary is when you as the agent know more about the Hud 1 and other signing papers than the closing agent. Thanks again for the article.

Kim Harris

President/Broker

Sound Realty

AUG

2007

This is interesting as I didn't know what to do at my first closing a month ago. My broker advised me to meet the clients at the escrow office when they have their signing and give them a closing gift if I wanted and wish them well, etc. But she advised (after having a bad experience) not to go into the signing.

AUG

2007

The one time I did attend a closing, I advised my client that while we were in the office, I would not be able to answer any questions outside my role as her agent and explained why. During the closing, the Escrow officer explained the paperwork, had my client sign and did the things that Escrow officers do. My presence was not needed. I don't feel it's worth our time to sit quietly in an closing meeting when we could be out working.

I'm all for meeting the client before or after the meeting, but I think it's a waste of time to attend.

AUG

2007

I have seen so many angry clients (not mine) because their agents didn't show up to the closing. I know this because I was there with my clients! Not showing up is like getting dressed to go to dinner and not puting shoes on. It's covering the important parts but not finishing what you started. It is true that we don't do much at the closing but we are there to support and follow through. This may actually be the most important part of the transaction! When will there be another time your client will be that happy that the transaction was a success? Don't miss this opportunity!

I always attend closings, I can't beleive that some agents don't. It is unheard of in our area not to attend the closing. I've even attended closings when my sellers did not ( they were out of state) just to make sure everything goes good. I'm representing them, I think I have an obligation to be there.

As a lender, I have contemplated regularly attending but have only actually done so a couple of times. I am always available during signing, but personally being there would be impactful...

Perhaps this differs by state. Being at a closing on a client's behalf may end up in a lawsuit here in Washington State. In Washington any statement you make in the closing meeting related to the closing can lead to penalties up to losing your license for acting as an Escrow agent without a license. I checked with the state on this and they confirmed it.

I make it a point to be there at every closing. The last thing I want is my Client's thinking I bailed out on them!

-Keith

RE/MAX Olympic, Manassas VA

http://www.MyRealtorKeith.com

Sandy,

The agent being present at closing is professional. It's important to most buyers that you are there to give them support, since you've been with them from the start. If a mortgage consultant has done his job correctly, he doesn't have to be there. He can call the buyers the day before and go over all the figures then, so there are no surprises.

Well, if it's allowed I agree that it shows a degree of professionalism. But if I have to weigh being professional and being sued or fined or worse, against being unprofessional and saving my license - I'll find another way to support my clients!

AUG

2007

I would just like to know if any agent has really ever been sued over making an incriminating statement during closing.

Sandy

AUG

2007

Good post Sandy, Personally, We take each closing differently. If our client is a first time buyer, we try to be there for them. The first thing we do is ask the client if they would like us to be there. Many times experienced buyer's will say no. Regardless of their answer, they know we are available for them. Whether we are there or not, we always review the HUD before their appointment so that we can get issues corrected before the parties have to sign. Many times we have found discrepancies. They are usually the result of things that have come up after mutual acceptance (ie: seller or agent credit instead of repairs, etc). that the escrow company did not notice when preparing the HUD since they are on an addendum that was drawn later. When we do attend, we keep quiet (since we already have seen the HUD) and let the escrow officer do their job. Then as with many agents, it's celebration time.

I have only attended one closing in the last year. This was because the client and I had developed a great friendship and I wanted to see them and congratulate them again. Otherwise, I am not the professional in there.

I believe time sitting in there is time you could be prospecting for new business.

SEP

2007

Being at a closing is critical and there is more liability that exists in all the other parts of the transaction. It is a significant opportunity to demonstrate your commitment to the client it furthers the relationship with is key to future referrals. Making sure the lender is available by phone if they are not present during signing is also something that should be arranged ahead of time. Even though I ask all the parties to let me know when the signing appt is, I'm invariably the last person to know. You want communication from your lender, you also have to give communication to your lender!

SEP

2007

I do not attend closings. There are several reasons for this. My job is to handle the real estate transaction, not the closing transaction. I am not an escrow officer, nor is it any of my business what the terms of their loan happen to be. Some of the information about your client is none of your business! You should know that they are able to afford the house you're trying to sell them, but much more beyond that is called being nosy, under the guise of "taking care of the client." Many of you say it's so important to be at a closing to show that you care! To assist the client! BS!!! You show you care by actually taking good care of your client up to this point. You show you care by being there AFTER the sale. You do NOT show you care by sitting there like a lump in a meeting which should be confidential. The ESCROW OFFICER will hold their hand--That is their job. You do yours.

Scott, Barbara&Kim, I agree, it makes sense to take into account who your client is.

Michael, a lot of other agents I know feel the way you do about attending closings.

Rich, I couldn't agree more.

Patrick, I'm not a home inspector either, yet I attend home inspections.

Thanks all, for all the great input and responses.

Sandy

OCT

2007

I, too, have been in the CE classes telling us we are raising our liability by attending closing. Personally, I think the risk(to the relationship) is far greater by NOT attending than the legal liability of attending. I'll take that chance... and maintain a life long relationship with the clients who, by now, have become friends.

Carol, I'm sure your clients appreciate your dedication to the relationship.

Sandy

OCT

2007

Well, I asked my Partner this question. With 19 years in the business, he has never attended a closing for reasons of liability. I called all of my past clients and asked them if they would have preferred that I attend the closing. 60% of them said that while it may have been good service, they didn't really need me there, and that it was fine to meet them at the door and congratulate them before the meeting.

I would like to attend my client's closings, but until I'm sure I can add value without adding risk, I'll stay away from them.

Kudos to you, Sandy for addressing this!! I am so happy to read that the general consensus is to "attend the closing!"

Speaking from the title company's perspective, we always encourage the agents to attend the closing with their respective parties.

Due to the privacy issues and my company's policy, we do take the buyer and seller in separately (if the transaction involves financing) so as not to have any of the buyer's private financial matters disclosed to the other party. But we stagger the times that we have the parties come in. For instance, we may have the buyer come in first, at 9, and then have the seller there around 9:45 so the sellers aren't sitting in the lobby, waiting on the buyer to sign all of their papers. Then after the seller signs their documents, they are available to speak to the buyers about any specific items concerning the property. (And if they do not get along, we are usually warned in advance to keep their closing times on opposite ends of the day!!)

But agents? So many times, issues have come up at the table that need to be addressed, and sometimes this leads to negotiations. It is not the escrow officer's position to negotiate (nor would we even be allowed!), which is why it is SO IMPORTANT for the real estate agent to be there. Plus, it shows that you care about seeing this transaction to the very end. This also applies to mortgage brokers and loan officers!!!

So when I do have agents ask me, "do I need to be there?". I always answer, "Yes!"

Jay, I'm impressed with the research you've done.

Nikki, Thanks for your valuable input from the escrow perspective. I would also like to see more lenders at the closing table. So far I've only had a lender attend a closing once. It impressed me so much that I have since recommended her to clients.

OCT

2007

It is interesting to see all the different opinions on this subject. I have put a lot of thought into this issue. I always try to offer a higher level of service by attending closings, but have also heard the advice to "stay away".

Ultimately, I have made the decision to review the HUD ahead of time, fix as much as possible before arriving at the escrow office, but I also attend the closing. Once we go through the door, I try to let the escrow officer do his or her job and try not to interfere too much. But there have been many times that I have been able to contact the lender to get a problem resolved. If not for my presence, the transaction probably would not have closed in time.

Thanks, Sandy, for bringing this to everyone's attention!

Marlene, I like how you handle the issue.

Sandy

OCT

2007

A good Realtor understands where their expertise begins and ends. We are constantly challenged to walk that fine line in our daily lives. Understanding your role at the signing table is no different.

While I leave the explanations to the escrow signer, I tell my clients that I am there as the one person in the room who is disinterested in rushing through the paperwork. If my client needs a greater explanation or objects to a document's purpose or accuracy, I am there as their advocate. A buyer may feel pressured to sign and hope for the best. I will know that we can pause, get explanations or corrections, and still close on time.

That is another area of confusion here, isn't it? We are all saying "closing" when we really mean "signing." Actual closing happens as documents are recorded and funds are released.

And, by the way, I also work with a lender who attends signings. It has proved helpful.

OCT

2007

Joy, I love they way you explain your purpose at attending the closing; and you're right it isn't the closing, but only the signing.

Sandy

FEB

2008

I attend the closing, bring all the paperwork just in case and keep the lender on standby just in case there are any questions. I do agree you should keep your comments to a minimum. You can even tell your client that your only there for moral support. It should be a great day. Why would you miss it?

FEB

2008

Thanks for your comments, Charles.

Sandy

APR

2008

I appreciate what everyone has had to say on this issue, but I for one attend every closing with my clients. I make it a point to state quite clearly up front that I am only there for moral support or if there is a document that is missing that I might have, I pull it from my file. I differ all other questions about closing to the closer. I have one escrow officer that even talks me up after the signing as the rare agent that gives his all. I understand the risks of making statements other than those of moral support. Moreover, I find it another place to listen to rather than speaking when it comes to my clients concerns. A lot of agents never learn to shut up or hear what concerns our clients have about us, the transaction or our industry.

APR

2008

Christopher,

I like how you handle your closings and your clients.

Sandy

I let the client decide if they wish me to attend closing or not. Sometimes they are more comfortable with me there, other times they would rather I not be there. In truth, most feel more comfortable without me there. I always try to arrange a get together after to celebrate, a cup of coffee or a sandwich, or whatever. It seals the deal, gives me an opportunity to personally hand them their keys, or just say Thanks and/or Good Living.

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