Closing Agent
BoatWiki - Definitions
Definition
A closing agent can be defined as a neutral third party that assists a buyer and seller with finalizing a purchase and sale arrangement. Although not always the case, such agent is typically a licensed professional and bonded as a fiduciary.
Meaning
The closing agent comes into play in situations where the buyer and seller are unable or unwilling to finalize a transaction directly between themselves. This is especially true where the parties are geographically apart, a broker is involved, or when financing becomes a factor.
Context
In the marine industry, closings are usually implemented by a yacht broker, lender, attorney, or boat titling company. There are no established escrow companies such as one would find in real estate. Governmental regulation of boat closing activities is also inadequate in most jurisdictions.
Conclusion
Given this lack of oversight, boat buyers and sellers should exercise a considerable amount of due diligence in accepting a closing agent. Further information about marine closing agents, escrows, and settlements can be found in the above WikiTags and throughout the pages of BoatWiki.
Credits and References
4/19/2022 - Page initiated by Team BoatWiki.
