Settlement Agent

AAA

DEFINITION of 'Settlement Agent'

1. The party involved in completing a transaction between a buyer and seller. This is done through the transfer of securities to the buyer and the transfer of cash or other compensation to the seller.

2. A real estate professional who functions chiefly for the buyer by conveying the selling interest from the buyer to the seller and ensuring the orderly transfer of the legal title from the seller to the buyer through the closing process.

Also known as a "closing agent" or "conveyancer".

INVESTOPEDIA EXPLAINS 'Settlement Agent'

1. The settlement of a trade in which actual securities and money are exchanged will occur several days after the original transaction. Settlement agents are responsible for settling the accounts of traders and making the process more efficient.

2. The duties of a settlement agent can extend to examining land titles for accuracy, pro-rating property fees for the current year of the transaction and interacting with local and state agencies to notify them about the transfer of ownership.

RELATED TERMS
  1. Delivery

    The action by which an underlying commodity, security, cash value, ...
  2. Settlement Date

    1. The date by which an executed security trade must be settled. ...
  3. Settlement Risk

    The risk that one party will fail to deliver the terms of a contract ...
  4. Cash Delivery

    1. The same-day settlement of a currency trade in the forex market. ...
  5. Crest

    CrestCo Ltd. is the central securities depository for the U.K. ...
  6. Discounted Payoff

    The repayment of a loan in an amount that is less than the principal ...
Related Articles
  1. Do You Need A Real Estate Agent?
    Home & Auto

    Do You Need A Real Estate Agent?

  2. Avoid Capital Gains Tax On Your Home ...
    Taxes

    Avoid Capital Gains Tax On Your Home ...

  3. What do T+1, T+2 and T+3 mean?
    Retirement

    What do T+1, T+2 and T+3 mean?

  4. Do I own a stock as of the trade date ...
    Options & Futures

    Do I own a stock as of the trade date ...

Hot Definitions
  1. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  2. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  3. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  4. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  5. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  6. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
Trading Center