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a. Requirements (09/30/2016)
Closing Agents must meet all of the following requirements in order to conduct a closing on a sales transaction of a HUD REO Property.
i. Licensure or Ability to Do Business in State where Property is Located
The Closing Agent must be an attorney, title company, or escrow company that meets all state and local requirements for eligibility to conduct closings as follows:
• An attorney or law firm may act as Closing Agent if they are duly licensed to practice law in the state where the Property is located and state law allows an attorney to facilitate closings.
• A title company may act as Closing Agent if they are duly licensed to do business in the state where the Property is located and are regulated by the state insurance commission, or similar regulatory agency recognized by the state.
• An escrow company may act as Closing Agent if they are duly licensed to do business in the state where the Property is located and meet all state legal and regulatory requirements as a recognized and registered escrow company.
ii. Errors and Omissions Insurance
The Closing Agent is covered by errors and omissions insurance of at least $1,000,000.
iii. Debarment or Suspension
A Closing Agent must not, and cannot, participate in any aspect of the closing or title clearance process if they are currently debarred, suspended, or otherwise excluded from participating in HUD’s programs.