Question

The Van Horns (buyers) and the Simpsons (sellers) have closed escrow on their real estate transaction. Who handles the completion of the transaction and both parties' separate paperwork?

Answer 1

Options:

A. Both parties close the transaction with ABC Escrow, the dual agency, in which both parties are represented. ABC Escrow then changes to separate agency and also handles each parties separate paperwork.

B. Although ABC Escrow served as the dual agency representing both parties until escrow closed, the Van Horns and Simpsons change to separate agencies for the handling of final paperwork.

C. ABC Escrow closes escrow for the Van Horn family. The real estate listing agent closes escrow for the Simpson family. Both parties use an agreed upon title company, acting as a dual agency, to complete the transaction and final paperwork.

D. None of the above.

Answer:

A) Both parties close the transaction with ABC Escrow, the dual agency, in which both parties are represented. ABC Escrow then changes to separate agency and also handles each parties separate paperwork.

Explanation:

In this transaction, ABC Escrow is a neutral party that is performing a dual agency since it works for both the buyers (Van Horns) and the sellers (Simpsons).

ABC Escrow will also handle both parties' separate paperwork but as a separate agency. It should then divide the funds and the costs of the transaction including prepaid expenses (seller) and after closing expenses (buyer).