What happens if a closing agent finds discrepancies in the closing documents?

• A. They proceed without actions
• B. They delay the closing until issues are resolved
• C. They are obligated to close immediately
• D. They report the discrepancies to the buyers only

Answer: (B)

When a closing agent finds discrepancies in the closing documents, the appropriate response is to delay the closing until the issues are resolved. This is crucial for several reasons. First, discrepancies could indicate problems that might affect the legality of the transaction or the financial interests of the parties involved. By delaying the closing, the agent ensures that all parties have accurate information and that all legal requirements are met before finalizing the transaction.

Furthermore, resolving these discrepancies helps prevent potential legal and financial complications later on, such as disputes over property ownership or financial obligations. The closing agent acts as a facilitator in the process and has a responsibility to ensure that all documentation is correct and that the closing proceeds smoothly. Addressing discrepancies before proceeding safeguards the integrity of the transaction.