Iowa Real Estate Practice Exam

Who is ultimately responsible for proper accounting at the closing of a sale?

1. Buyer

2. Selling broker

3. Listing broker

4. Closing agent

The correct answer is: Listing broker

The ultimate responsibility for proper accounting at the closing of a sale rests with the closing agent. This professional manages the closing process, ensuring that all financial aspects are handled accurately and in compliance with applicable laws and regulations. The closing agent prepares the necessary documentation, facilitates the disbursement of funds, and ensures that all parties involved—such as the buyer, seller, and brokers—fulfill their obligations. In contrast, while the selling broker and listing broker play crucial roles in the sale, their primary responsibilities are focused on facilitating the transaction and representing their respective clients rather than directly managing the closing procedure's financial details. The buyer also has a stake in the process and needs to be aware of the closing costs and final accounting, but they are not responsible for the accounting itself. Therefore, the closing agent is clearly positioned as the one ultimately tasked with ensuring that all financial aspects of the transaction are accurately accounted for at closing.