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4 Advantages Of Using A Real Estate Attorney vs. A Title Company

In Florida, buyers and sellers may choose an attorney or a title company to handle the closing on their real estate transaction. This often causes the parties to wonder why they should hire an attorney instead of a title company to handle their closing.

Below are 4 advantages of choosing an attorney to handle your closing:

1. A title company does not work for the buyer or the seller. An attorney can represent a buyer or seller. In addition to serving as the closing agent, they look out for their clients’ best interest and advocate for their client throughout the transaction. The title company’s sole function is to prepare the basic closing documents and issue the title insurance policy.

2. Title agents cannot provide legal advice or address problems in the sales contract. When there are problems or questions, the buyer/seller can’t turn to the title company for legal advice. One of the most common questions is regarding the title vesting or type of property ownership the buyers must choose, which has legal consequences. An attorney can advise you on which option is best for you, a title agent cannot. Attorneys can also work with your realtor to review the sales contract and answer legal questions during the contract negotiation process; or draft the sales contract if the parties are not represented by realtors.

3. Title agents cannot correct legal issues that affect the title. This is important because if an issue arises, corrective documents may need to be obtained or created. Attorneys can provide legal advice on the best way to handle the issue, as well as prepare necessary documents, title agents cannot. Depending on the issue, a title agent will in fact have to send parties out to hire an attorney (at their own expense) to handle specific title problems.

4. The costs of hiring a title company vs. an attorney are comparable. Many closing costs such as title insurance premiums, documentary stamps, and recording costs are set by the State of Florida. They are the same whether you choose to use an attorney or a title agent. In some cases, using an attorney can actually save the parties money by performing legal services and acting as a title agent; a title agent cannot do the same.