☕ Coffee with Michelle®

Coffee & Closings

Episode 2: The Closing That Happened Without Us

"Everyone talks about delayed closings. But what happens when a transaction closes two weeks early...and no one tells you?"

Grab your favorite cup of coffee, because this is one I'll never forget.

When people hear that a transaction closed early, the first reaction is usually,

"That's great!"

Most of the time, I'd agree.

But this closing taught me that early doesn't always mean better.

This particular transaction seemed simple enough. It was a cash deal involving an assignment agreement. My client wasn't purchasing the property, wasn't selling the property, and wasn't attending closing. Their role was to receive an assignment fee for bringing the buyer and seller together.

Everything was moving along exactly as expected.

Closing was scheduled for the end of July, and we were about halfway through the month. Like I always do, I reached out to the title company for a routine status update.

I expected to hear something like, "Title is clear," or "We're waiting on one final document."

Instead, I received an email with recorded documents attached.

The transaction had already closed.

I stared at my screen for a moment.

Wait...what?

We were still two weeks away from the scheduled closing date.

No one had called.

No one had emailed.

No one had asked for approval.

No one had even told us the transaction was complete.

As a transaction coordinator, that immediately raised a red flag.

I called the title company and asked the obvious question.

"How did this close without anyone notifying us?"

Their response surprised me.

Since my client was only receiving an assignment fee and wasn't actually signing the closing documents, they assumed we didn't need to be involved. In their opinion, only the buyer and seller needed to know what was happening.

Unfortunately, that assumption created a much bigger problem.

Because we weren't included in the closing process, we never had the opportunity to review the settlement figures or verify the assignment fee before funds were disbursed.

The title company calculated the proceeds on their own.

And they calculated them incorrectly.

The seller was overpaid, and my client's assignment fee was wrong.

Thankfully, we caught the mistake quickly enough to have everything corrected. But it could have turned into a much larger issue if no one had questioned the numbers.

That experience changed the way I manage transactions forever.

Today, whenever I open a file, I clearly explain my role to every party involved—agents, title companies, lenders, and anyone else connected to the transaction. I outline exactly what communications I expect to receive, what approvals are required, and when my client needs to be notified.

I've learned that assumptions are one of the biggest risks in real estate.

Everyone may believe someone else is handling the details.

That's exactly when details get missed.

☕ Coffee Thought

An early closing is only a success when it's handled correctly.

Communication doesn't end because a transaction is moving quickly. In fact, that's when it matters most.

Because in real estate, it's not enough for a deal to close.

It has to close right.