If you need assistance, please call 509-590-4701

Real Estate Attorney vs Title Company

Saturday, March 30, 2019   /   by Dixie Simon

Real Estate Attorney vs Title Company

Can someone please explain the difference?
What a great question for both the Seller and the Buyer

A Title Company is an insurance agency. They represent title insurance companies that ensure clean title to buyers and lenders. A title needs to be free and clear of encumbrances or any cloud on said title that would cause a financial loss. The potential financial loss is what is insured.

320x100 - HV - Branded.gif

The settlement transaction (the order in which documents are executed and filed for public record) together with the financial accounting of said transaction is insured in the event any error or omission. For the title insurance company to ensure the closing, they will require that it be done by a qualified closing agent who represents their company.  A title company is used to close the deal.
  • In many areas, especially in smaller communities where there are no title insurance company offices, attorneys can close a real estate transaction. The attorney submits a resume and makes an application to the insurance company for approval in order to be an insured closing agent.

  • An attorney may close a real estate transaction regardless of title insurance in a settlement. Sometimes a title company works side by side with an attorney if the attorney is not bonded to carry title insurance...which is rare. 

____________________________________________

Additional Articles
:

 Who Pays What in Closing Costs?

Cashing In On Your Greatest Asset?

____________________________________________


Title companies may not practice law, however, they will often have an attorney on retainer to manage the care of legal issues that arise. The title company may provide the blank legal forms, contracts and promissory notes for example, but they can not give legal advice. They will sometimes assist in filing such forms, but at the direction of the parties as applicable.

A Clients dream team should have a good title company, familiar with investor strategies. The title company also needs to include an excellent real estate attorney, in certain cases especially to guide and consult when needed. 

An attorney in the title company on retainer by the title company, should not be representing you the client! The fact is, this attorney will be representing the title company, not the client. It is suggested to have a private attorney who has no connection with the title company in the event of a conflict in opinion or other matters.  The title company's attorney will side with the title company, whom they represent. Of course, It depends on the nature of the issue as to whether to use the title attorney or a private attorney. If there were a conflict of interest, they will definitely inform the client.

468_x_60_.jpg

Which is best? Many people don't care. Several of my realtor friends love using the attorney. Fees may be a little bit higher; however, the realtor feels this is a measure of security for their client. Most residential transactions I feel totally comfortable with the title companies. If it were a condo or other commercial sale, I would totally want an attorney involved. This may or may not answer all your questions but at least you know that both options are available and you can choose where and with whom you would like to close. 
If you have any other questions feel free to contact me.

Dixie's Info..png



  selling home, home selling, spokane real estate, buying and selling a home, haven real estate group, sellers, transaction, realtor, spokane realtor, buyer guide, dixie simon, closing fees, attorney, title company, title insurance

Haven Real Estate Group
Cambria Henry
304 W Pacific Ave; Suite 360
Spokane, WA 99201
509-590-4701

IDX information is provided exclusively for consumers’ personal, non-commercial use, that it may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing, and that data is deemed reliable but is not guaranteed accurate by the MLS.
MIMLS The data relating to real estate for sale on this web site comes in part from the Spokane Association of REALTORS® MLS. Real estate listings held by brokerage firms other than Haven Real Estate Group are marked with the IDX logo. All information deemed reliable but not guaranteed and should be independently verified. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s) nor Haven Real Estate Group shall be responsible for any typographical errors, misinformation, misprints and shall be held totally harmless. Property locations as displayed on any map are best approximations only and exact locations should be independently verified. Copyright 2019 of the Spokane Association of REALTORS® MLS. All rights reserved.