With many unknown traps, it would be very risky if you try to carry out settlement of a property all by yourself. When you are about to buy a piece of property, it is necessary for you to consult a settlement agent to guide you. A settlement agent ensures that all the paperwork involving property sale is done accordingly. Here are answers to commonly asked questions about settlement agents.
- What does a settlement agent do? A settlement agent plays a crucial role in property transfer. Several documents are required for property to be transferred to the buyer from the seller in accordance with the property act. The settlement agent has to be licensed under Settlement Agents Act. If he or she is not registered, you should not consult with the person. However, in case any conflicting issues arise during the transfer of property, a settlement agent withdraws from it as he or she is not to be involved in any dispute whatsoever. A settlement agent is just responsible for the transfer. A settlement agent can also answer any questions regarding the property that you are buying. Thorough inspection of the property will reveal issues related to the property, and these can be addressed during the period of purchase. The role of a settlement agent is to ensure that the buyer is aware of all relevant information revolving around the property under contract. When terms and conditions for the purchase are met, a settlement agent will then help you in enlisting special conditions that are to be added to your contract.
- Is it advisable to select my own settlement agent? It is appropriate for you as the buyer to be able to pick your own settlement agent. One may be recommended to you by the real estate agent dealing with your contract, but there may be a financial gain to be made by the settlement agent. This may lead to an increase in the price you were to pay. You can eliminate any added costs by choosing your own agent.
- How much does settlement cost? The Department of Commerce sets the amount to be paid to a settlement agent. The fee is determined by the property in question when it is sold, and this is the most common method used by settlement agents. However, a settlement agent may decide to include extra fees arising from costs incurred during the settlement process such as phone charges, inquiries and searching.