Is it permissible for a settlement agent to record documents before funds are available for disbursement with the agreement of the parties involved?

The correct answer is that it is permissible for a settlement agent to record documents before funds are available for disbursement, provided there is an agreement among the parties involved. This scenario is common in real estate transactions where all parties have consented to this arrangement in writing or verbally, ensuring clarity and mutual understanding.

Recording documents before the actual disbursement of funds can be a tactical decision, particularly in instances where timing is crucial for property possession, legal standing, or other logistical considerations. The parties may prefer to have the documents recorded to formalize the transaction without necessarily waiting for funds to clear, provided that this does not violate any specific contractual or legal obligations.

The nuances of this practice emphasize the importance of communication and agreement among all involved parties, clearly delineating responsibilities and expectations. This practice may not be universally accepted and can vary depending on local regulations or the nature of the transaction, as indicated in some of the other options. However, when all parties are in accord and there are no legal prohibitions, it is indeed permissible.