BIC TIP #1224: Do You Review the Closing Statement?
Yes, the lender prepares figures. Yes, the attorney prepares the statement. Everyone has eyes on it. In this BIC TIP, Stephen Long reminds brokers that none of that lets you off the hook. As a real estate professional, you are expected to review the closing statement and make sure the math adds up.
Many Eyes Are Not Your Eyes
It is easy to assume that with a lender and a closing attorney involved, someone else will catch any problem. But brokers have their own responsibility to review the numbers. A mistake that slips through can cost your client money and create a mess that is much harder to fix after closing than before.
Start With Your Commission
Stephen says the most notable item to check is commission. Make sure the amounts and the payees are correct, consistent with your agreements and the contract. If it is wrong on the statement, it will be wrong in the disbursement.
You Were Boots on the Ground
There are things you know as an agent that the attorney and the lender may not, because they were never in the house and were never with the client. Repair invoices, agreed credits, items negotiated during due diligence, and other line items that are supposed to be there. Confirm that every invoice that should be on the statement is on it, and that nothing is there that should not be.
You are the one who knows what was promised. Use that knowledge to catch what others cannot.
The Practical Takeaway
Before closing, review the closing statement line by line. Verify commissions, confirm invoices and credits, and check that the math works. If something looks off, raise it with the closing attorney right away, and loop in your broker-in-charge if needed. A few minutes of review keeps everyone happy at the closing table.
This BIC Tip is general real estate education for licensees and consumers, not legal, tax, or financial advice. Rules and forms change, so verify current NCREC rules, MLS rules, and standard forms, and consult a North Carolina attorney or qualified professional about your specific situation. See Disclaimers & Disclosures.
Mortgage topics are discussed for general education only and are not a commitment to lend or an offer of credit. Stephen Long, NMLS #2795861, Keller Home Loans, a division of Mutual of Omaha Mortgage, Inc., NMLS ID 1025894. Equal Housing Opportunity.
