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I just had another contract come in on one of my listings that designated a settlement agent far away from where the actual property is located. In this case the property is in Culpeper County and the settlement agent was in Arlington. This is not at all uncommon.
While the regional contract lets the buyer choose the settlement agent, the reality is that most buyers don't know any or don't have any preference and so the agent chooses. The agent makes their choice based on who they know will get the job done and based on convenience for themselves and their clients.
The problem arises after settlement when the settlement company needs to record the deed at the county courthouse in the county where the property is located. I've consistently run into settlement companies who are in no hurry to rush out and record the deed because it's just not convenient for them. This delays funds being released to my seller, which often delays their ability to close on their next home, particularly if they're buying their next home out of state.
I've solved this dilemna by giving the buyer's agent and their clients a choice in these situations. If you still want to use the designated settlement agent who's located out of the area, we add a clause to the contract saying posession, including the handing over of keys doesn't occur until after the deed is recorded. Since the buyers want into their new house, they've now got incentive to lean on their settlement agency!
Or, their other option is to move to a settlement agency nearby who will have the ability to typically record the same day as settlement.
Overall, this policy has worked well for both myself and my sellers.
Are there other agents or sellers out there who have run into these issues? Do you have other ways of addressing them?
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