Tennessee Realtor State Practice Exam

If discrepancies are found in prorated expenses at closing, who is responsible for resolving the issue?

1. The buyer

2. The seller

3. The closing agent

4. The principal broker

The correct answer is: The closing agent

The closing agent plays a crucial role in the closing process, particularly regarding the accurate calculation and distribution of prorated expenses. When discrepancies arise in these prorations, it is the closing agent's responsibility to resolve them. This typically involves reviewing the calculations related to property taxes, utilities, and other expenses that need to be split between the buyer and seller based on the closing date. The closing agent serves as a neutral entity in the real estate transaction, ensuring that both parties adhere to the agreed terms and that all financial matters are handled appropriately. By overseeing the closing process, the closing agent ensures that any errors are promptly addressed and rectified, thereby protecting the interests of both the buyer and the seller. While the buyer, seller, and principal broker have roles in the transaction, the responsibility for rectifying discrepancies specifically falls to the closing agent due to their expertise and the fiduciary duty they hold during the closing process.