Licensees are responsible for paying the costs of legal document preparation when they are preparing such documents for their clients. If the broker delegates this function to an agent (title company or closing service), who is responsible for bearing the cost?

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Business

Lailah Garcia

24 August, 23:36

Licensees are responsible for paying the costs of legal document preparation when they are preparing such documents for their clients. If the broker delegates this function to an agent (title company or closing service), who is responsible for bearing the cost?

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Kassidy House · Answer 1

The broker is responsible for bearing the cost.

Explanation:

The licensees are responsible for paying the costs of legal document preparation even if the documents were prepared by an agent. The broker may delegate the work but the responsibility cannot be delegated, and it is their responsibility to pay for these costs.

The only exception to this rule can happen when the legal documents are prepared by an attorney that represents the parties involved in the transaction.