What does a transaction coordinator do in real estate?

The job in one paragraph

Once a purchase contract is signed, a long list of things has to happen in the right order before the deed records: the title company gets the contract, documents are requested and chased, drafts move between the attorney and the parties, insurance and servicing get set up, the settlement statement gets checked, the signing gets scheduled, and every party gets told what is happening. A transaction coordinator, or TC, owns that list. The investor, agent or wholesaler who hired the TC keeps negotiating and finding the next deal.

The coordinator does not decide anything about the deal. The coordinator makes sure the people who do decide have what they need, on time, and that nothing is forgotten between contract and closing.

What changes on a creative finance file

A conventional file has a lender doing a lot of the pushing: conditions, appraisal, closing disclosure. On a subject-to, seller finance, wrap, novation or lease option file there is often no bank, so the coordination load moves to the coordinator. The extra items that show up on these files:

• The existing loan. On a subject-to or wrap, the recorded deed of trust, the mortgage statement and the seller's authorization to speak with the lender go in the file first.
• Attorney-drafted documents. The note, deed of trust, addenda and any state-required notices come from an attorney and have to be tracked from draft to signed to delivered.
• Notice dates. Some states put a clock on certain disclosures. Texas, for example, requires a written disclosure on a wrap at least seven days before the wrap agreement is signed. The date goes on the calendar and is tracked to the day.
• A loan servicer. When payments continue after closing, a third-party servicer is set up so the first payment is scheduled when the deed records.
• Insurance. The buyer's new policy with the right parties named, and the old policy handled.
• A title company willing to close the structure. Not every title company will insure a wrap. Finding one that will is an early item on the file.

Dean Creative Closings coordinates only these kinds of files. The checklists on each deal type page show the items one by one.

Who pays the transaction coordinator fee

The person who hires the coordinator. For Dean Creative Closings that is the client who opens the file: usually the investor or buyer, sometimes the wholesaler on a novation, sometimes an agent who has a creative offer on the table and wants one person running it. The fee is flat by deal type, $250 is paid to open the file, and the balance is due at closing. Whether the fee can be shown on the settlement statement and paid from closing funds depends on your title company and your contract; ask them, and tell Kristen what they say.

Does a transaction coordinator need a license?

It depends on the state and on what the coordinator actually does. A coordinator who tracks documents and deadlines is doing administrative work. A person who negotiates terms, gives legal advice, drafts legal documents or originates a loan is doing licensed work, and a license or a licensed professional is required for that no matter what the job is called. We have not checked the rule in every state, so treat this as a question for your attorney or broker rather than a settled answer.

What is settled is where the line sits on this site. Dean Creative Closings is not a law firm, lender, mortgage loan originator or title company. Kristen does not draft documents, give legal or tax advice, negotiate the deal or arrange financing. The licensed people do the licensed work; she keeps them supplied and on schedule.

What a transaction coordinator never does

• Draft the note, deed of trust, addenda or any other legal document. Your attorney does that.
• Tell you whether a structure is legal, safe or right for you. Your attorney does that.
• Lend, originate a loan or arrange financing. A lender or RMLO does that.
• Run title, hold escrow, close or record. Your title company or closing attorney does that.
• Collect or distribute payments after closing. Your servicer does that.
• Negotiate with the other side.

How to hire one

Have the signed contract, the property address and state, the target closing date and the name of your title company or closing attorney ready. On this site that takes six short steps on the Start a File page. Kristen replies by text or email, opens the checklist, and tells you what to gather first.