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Q: “Can settlement be delayed by an agent’s compensation?”

A: In short, no. If one of your clients is for whatever reason instructing the settlement agent not to disburse the funds, there is a dispute about the funds, etc; the settlement agent does not have to delay or hold up settlement for this. As agents, the contract between you and your client is likely to be paid at settlement.  

However, in legal terms you are a third-party beneficiary at settlement, in other words, not a party to the settlement contract. Either the buyer or the seller can stop the payment anyway from disputing it to committing fraud. If either the buyer or the seller decides to stop payment to you for whatever reason, please contact an attorney.  

You should know, the settlement agent does not have to delay settlement for your compensation. If the settlement agent did, they could be found to be in breach of their contract.  

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