Common use of Closing Agents Clause in Contracts

Closing Agents. (1) The term “closing agent” refers to title companies, escrow companies, qualified private attorneys, abstracters, or Federal employees familiar with the preparation of such evidence in the jurisdiction in which the lands are situated, that conduct activities for NRCS associated with the execution and recordation of the warranty easement deed. These activities will include— (i) Obtaining title commitment binder and title insurance. (ii) Obtaining signatures on Form NRCS-CPA-260, “HFRP Conservation Easement Deed.” (iii) Obtaining signatures on Form AD-1158, “Subordination Agreement and Limited Xxxx Xxxxxx(s).” (iv) Working with landowners to clear title defects to the property that are unacceptable to NRCS. (v) Recording easements and other documents. (vi) Other functions as necessary or that may be required by State law to finalize the easement transaction as detailed in the scope of work. (2) The State Conservationist will work with the regional OGC to develop a work order for acquiring closing agents. OGC will ensure that the work order lists all necessary closing agent qualifications and conditions, such as errors and omissions insurance, and identify closing agent responsibilities to develop closing instructions. The State Conservationist will ensure that the closing agent is qualified and certified by law to perform the required services in the State in which the land lies and is experienced, financially responsible, and reputable. (3) Closing agent services may be acquired by Federal contract, interagency agreements, cooperative agreements, or other methods, as appropriate. It is recommended that States use a blanket purchase agreement or an indefinite delivery, indefinite quantity type arrangement. Costs for closing services may not exceed what is considered fair and reasonable. Funds for the closing services will not be obligated to each individual application. Closing services will be secured through an appropriate procurement method, and funds will be obligated directly to that procurement document. Funds would be obligated as closing services are ordered, through a task order process. (4) Form AD-1157, “Option Agreement to Purchase,” states that NRCS may provide payment to the landowner through an escrow account managed by the NRCS closing agent. The landowner approves the payment to the escrow account through the execution of Form AD-1157, and therefore a separate assignment of payment form does not need to be executed by the landowner. NRCS will send a letter to the landowner notifying the landowner of the identity of the closing agent selected to handle the easement transaction. The financial officer will identify the escrow account as an alternate payee in FFIS. The closing agent will handle the funds in the escrow account in accordance with the NRCS closing instructions and OGC preliminary title opinion for ultimate disbursement of the proceeds to the landowner.