Title Company vs. Closing Attorney: How Each One Helps Ensure a Smooth Closing

The question of a title company vs. closing attorney comes up in many real estate closings, yet many people are unsure of the difference.

Buying or selling a home is a major milestone, and the path to closing is rarely simple. The process involves many legal documents, a review of public records, a title search, title insurance, and plenty of coordination between buyers, sellers, real estate agents, and lenders.

With so many moving parts, it’s no wonder people are often unsure about who keeps everything on track. That’s where the conversation of title company vs. closing attorney comes in. Both play a key part in making sure a real estate closing is smooth and legally sound, but their responsibilities are different. Understanding what each one does, and when you might need one over the other, can give you clarity and peace of mind during the closing process.

What a title company does

A title company handles many of the behind-the-scenes tasks that make a closing possible, such as:

• Title search: Title companies comb through public records to confirm that the seller truly owns the property and that no liens, judgments, or unpaid taxes could threaten the transfer.
• Title insurance: After completing the search, the title company issues policies that protect both the buyer and the lender if an issue surfaces later. Title insurance helps safeguard the buyer’s investment and ensures lenders feel confident funding the loan.
• Escrow services: Title companies often serve as neutral third parties, holding deposits and closing funds in escrow until every condition of the contract is met. This protects both buyers and sellers.
• Closing documents: They prepare settlement statements, deeds, and other paperwork. They also make sure documents are signed correctly and then recorded with the appropriate office.

In most straightforward real estate transactions, the title company is equipped to manage the closing from start to finish.

What a closing attorney does

A closing attorney is a real estate attorney whose work focuses on finalizing property transactions. Their role brings in a layer of legal expertise that goes beyond what title companies typically handle. For example:

• Legal advice: Attorneys can answer questions about contract terms, restrictive covenants, easements, and other matters of real estate law.
• Drafting and revising documents: If a purchase agreement, deed, or addendum requires changes, an attorney can prepare or review those legal documents.
• Resolving disputes: Should issues arise, such as boundary questions or title defects, an attorney can negotiate solutions on the spot.
• Representation: Attorneys represent their clients’ best interests at the closing table and, if needed, can provide legal representation in court.

When a transaction involves legal complexities, having a closing attorney provides additional protection.

Where the roles overlap

Although their functions are different, there are areas of overlap. Both title companies and closing attorneys are focused on ensuring the buyer receives clear title. Both are involved in preparing for the real estate closing and making sure funds and closing costs are properly distributed. In some cases, attorneys and title agents work together, particularly in more complex transactions.

Different states take different approaches

An important consideration is that rules vary across the country. Some states require an attorney to be involved in every real estate closing. Others allow licensed title companies to handle the entire settlement process without an attorney present. Still others give buyers and sellers the choice between the two.

Because the law isn’t the same everywhere, it’s essential to know the requirements in your state before deciding whether to work with a title company, a closing attorney, or both. A trusted, experienced title company that serves multiple states can guide you through what applies in your area and connect you with additional legal support if it becomes necessary.

Which option is right for you?

If your transaction is relatively straightforward, working with a title company is often sufficient. They have the tools and resources to complete a title search, issue title insurance, manage escrow, and prepare documents needed for closing. On the other hand, if legal issues are likely to surface, or if you simply want the reassurance of legal representation, involving a closing attorney can be worthwhile.

Here are a few questions to consider:

• How complex is this transaction?
• Are there unusual circumstances, such as property disputes or complicated ownership structures?
• What does your state law require?
• How much legal guidance do you want throughout the process?

Your answers will help determine whether you need a title company or the combined support of a closing attorney.

When it comes to a title company vs. closing attorney, there is no one-size-fits-all answer. Title companies are experts in the administrative side of closing, while closing attorneys add legal advice, representation, and dispute resolution. Their goals is the same: to make sure the buying or selling of your home is completed smoothly, securely, and in full compliance with the law. By understanding how each professional contributes, you can approach the closing table with confidence.

Certified Title simplifies the closing process. Our attorney-owned team brings the expertise and attention to detail you need for a secure, stress-free settlement. Contact us today to learn more.

About Certified Title Corporation: Since 1994, attorney-owned Certified Title Corporation has been furnishing residential and commercial real estate stakeholders across the nation with robust title insurance, settlement, and escrow services. Renowned for its industry-leading reliability and exemplary level of service and quality, the Maryland-based company helps clients from all walks of life achieve their asset goals. To learn more, call (888)486-5511 or visit https://www.certifiedtitlecorp.com/.