Escrow & Title
Which party in an Iowa real estate transaction typically selects the title or closing company?
AThe lender always selects the title company
BCustom varies, but often the buyer or their agent selects the closing agent✓ Correct
CThe Iowa Real Estate Commission assigns closing agents
DThe IREC requires sellers to select the title company
Explanation
In Iowa, it is customary for the buyer or buyer's agent to select the closing agent or title company, though it is negotiable between parties. Federal RESPA prohibits lenders from requiring use of a specific title company.
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Key Terms to Know
Buyer's Agent
A real estate licensee who represents the buyer's interests in a transaction, owing fiduciary duties to the buyer.
Title InsuranceInsurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
ProrationThe division of ongoing property expenses (taxes, HOA dues, rents) between buyer and seller at closing based on their respective days of ownership.
Short SaleA sale of real property where the sale proceeds are less than the outstanding mortgage balance, requiring lender approval.
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