Who is responsible for reviewing transactional documents and ensuring collateral for a loan is clear of encumbrances at a closing?

The title insurance representative is responsible for reviewing transactional documents and ensuring that the collateral for a loan, typically the property being purchased, is clear of encumbrances at closing. This role is crucial as it involves conducting a thorough title search to identify any claims, liens, or other issues that may affect the property's title.

By reviewing these documents, the title insurance representative provides assurances to both the lender and the buyer that the property can be transferred without legal complications. They also facilitate the issuance of title insurance, which protects the buyer and lender from future claims against the title.

While other parties such as the buyer’s attorney or the real estate broker may assist in the transaction or provide legal counsel, the specific duty of ensuring the title is clear of encumbrances falls primarily to the title insurance representative. This clarity is vital for a smooth transaction and for safeguarding the interests of the parties involved.