Lenders often use a title company or other firm as an agent to complete loans. An agency closing happens when a title company is acting as the lender's agent in a real estate contract completions. This happens in most real estate transactions around the United States. Most lenders do not have representatives available in all locations to handle mortgage closings. Instead, they contract with a third party, often a title company, to handle their end of the paperwork and closing requirements. The agent accepts the buyer's funds and mortgage as well as the seller's deed. The agent disperses net proceeds to the seller. They also commit to the lender issuing a title policy the date of the closing. Once the third-party completes the real estate transaction, they send all paperwork to the lender for final processing. The buyer usually covers the agency closing fees.