July 31, 2017
Why work with a law firm instead of a title company?
In many, but not all, states, both attorneys and title companies may act as closing agents and issue title insurance. It may be more advantageous to use an attorney, though. Here’s why:
Legal Guidance and Leadership
Title companies are usually not run by attorneys. If they are, the attorneys are not actually attending closings with boots on the ground. Title companies are more managerial in their role, preparing the documents needed to issue a title insurance policy at the closing. An independent attorney, on the other hand, can be more of a guiding force and provide critical legal advice. If the deal sours and someone has committed wrongdoing against you, an attorney can also file litigation and attend hearings.
Title companies cannot prepare addendums to contracts, changes to standard documents, and other nonstandard documents for a closing. An attorney should be tasked with these complicated procedures should they be needed.
Unlike title companies, attorneys can provide immediate access to title curative work and legal advice, and at no additional expense. In fact, many title companies will hire an attorney with an additional charge if they are acting as the closing agent and require legal work beyond their capabilities. Using a title company may simply delay the inevitable and slow down an already tedious, time-consuming process.
Avoid UPL Challenges
Unlicensed Practice of Law (UPL) regulations and laws vary state to state, so you may not even be aware that your closing agent is acting illegally. By using a lawyer, you are guaranteed to avoid UPL challenges. An attorney conducts a closing and issues a title insurance policy as a licensed legal professional.
About Topouzis & Associates
Topouzis & Associates, P.C. provides title, search, and settlement solutions that help streamline transactions and reduce the risk of noncompliance. We have several attorneys on the ground in the states where we practice. We work with realtors, lenders and real estate investors in FL, RI, MA, and Washington, D.C. To learn more about our array of services, please visit our homepage today!