Closing Attorneys
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What is the difference between a closing attorney and a real estate attorney?
A closing attorney is a real estate lawyer who specializes in closing a property transaction. Closing attorneys examine the title to a property and resolve any issues before the close. The closing attorney will review and explain all the documents that you will be signing at the closing and make sure they are accurate.
A real estate attorney is a lawyer who specializes in general real estate law. He or she is trained to handle a wider swath of real estate-related legal issues.
Closing attorneys typically oversee the closing of a transaction in New England, certain east coast states and some states in the south and mid-west. See Who Handles Closing in My State
The attorney who oversees a closing does not represent any of the parties in the transaction. He or she remains a neutral third party and provides the settlement services that a title company or escrow/settlement agent would handle in other states.
When do I need to hire my own real estate attorney?
Hiring a real estate attorney to represent you in a closing is optional. However, the closing attorney is always required in certain states, such as New York, New Jersey and Georgia, among others. The closing attorney is usually appointed by the lender and the buyer pays the fee.
In a number of states your closing can be handled by a title company that provides in-house escrow/settlement services or an independent escrow/settlement company.
Different states refer to the closing in different terms. In southern California, the term "escrow" is commonly used for the settlement. In northern California, "settlement services" is the preferred phrase.
In states where closing attorneys are not required (Oregon, Washington, California, among others), the escrow/settlement agent usually guides buyers and sellers through property transactions. The agent also provides standardized documents and contracts that legalize the property transfer when signed.
If you live in a state that does not require a real estate attorney, you may still want to hire one. Here are some circumstances that may warrant hiring a real estate attorney:
How do I choose a real estate attorney?
If you already have a lawyer, ask for a recommended real estate attorney. Also ask friends and family for their recommendations. Your real estate agent or broker may also be able to provide a referral. Use Closing.com to find and compare real estate legal services in your area.
Make sure you select an attorney that specializes in real estate law.
How much does a real estate attorney cost?
Typically, attorneys have a flat fee schedule for providing closing services. For other real estate legal matters, most attorneys charge by the hour. Hourly fees vary greatly depending on location, firm, experience and expertise, so it pays to understand the fees upfront. Always ask for an estimate.
Here's how it works:
- A closing attorney is always appointed by the lender who also decides the fee. The fee is flat and most often paid by the buyer/borrower. The closing attorney oversees the closing but also looks after the interest of the lender. He is a neutral party between buyer and seller.
- In some states, the lender will give the buyer/borrower a list of closing attorneys to choose from.
- If there is a case where the buyer/borrower wants to use a certain closing attorney, the lender has to approve that attorney. This is rare.
- If a buyer and/or seller wants an attorney to also be present at the closing, they can hire that attoreny who will charge a separate fee.
Smart Tips
• If you have a specific problem, such as a tax issue or a disclosure issue, make sure the attorney you select is experienced in that area of the law.
• If you want a lawyer to be present at closing or to review a set of documents, ask for a fixed fee.
• If your real estate attorney charges by the hour, ask in advance for an estimate.
• If you are in a dispute with the seller, ask your real estate agent to assist in getting it resolved. Experienced agents are often skilled at problem resolution and may be able to save you the cost of hiring an attorney.
A closing attorney is a real estate lawyer who specializes in closing a property transaction. Closing attorneys examine the title to a property and resolve any issues before the close. The closing attorney will review and explain all the documents that you will be signing at the closing and make sure they are accurate.
A real estate attorney is a lawyer who specializes in general real estate law. He or she is trained to handle a wider swath of real estate-related legal issues.
Closing attorneys typically oversee the closing of a transaction in New England, certain east coast states and some states in the south and mid-west. See Who Handles Closing in My State
The attorney who oversees a closing does not represent any of the parties in the transaction. He or she remains a neutral third party and provides the settlement services that a title company or escrow/settlement agent would handle in other states.
When do I need to hire my own real estate attorney?
Hiring a real estate attorney to represent you in a closing is optional. However, the closing attorney is always required in certain states, such as New York, New Jersey and Georgia, among others. The closing attorney is usually appointed by the lender and the buyer pays the fee.
In a number of states your closing can be handled by a title company that provides in-house escrow/settlement services or an independent escrow/settlement company.
Different states refer to the closing in different terms. In southern California, the term "escrow" is commonly used for the settlement. In northern California, "settlement services" is the preferred phrase.
In states where closing attorneys are not required (Oregon, Washington, California, among others), the escrow/settlement agent usually guides buyers and sellers through property transactions. The agent also provides standardized documents and contracts that legalize the property transfer when signed.
If you live in a state that does not require a real estate attorney, you may still want to hire one. Here are some circumstances that may warrant hiring a real estate attorney:
| Peace of mind |
Buying property is a big investment. You may want the added support of a legal professional reviewing your documents and overseeing the transaction. |
| Mortgage issues |
Real estate attorneys can review financial documents and provide advice about the risks and obligations of various mortgage types, including seller-financed mortgages. |
| Leases |
If you are buying a property that is currently rented or leased, or if you plan to rent property, a real estate lawyer can assist you in complying with landlord/tenant law. |
| Disclosure issues |
Sellers are required to disclose anything that affects the value or desirability of a property. Real estate attorneys protect buyers by reviewing disclosures. |
| Construction |
Real estate attorneys can assist buyers when construction deadlines have not been met. |
| Zoning and Permits |
Real estate attorneys can help resolve disputes over zoning, land use and permits. |
| Taxes |
Real estate attorneys can offer advice on minimizing tax issues. |
| Title issues |
Real estate attorneys can help resolve title disputes and land boundary disputes. |
| Condos |
Real estate attorneys can review community bylaws and determine whether pending lawsuits against the homeowner’s association (HOA) exist and if they are likely to result in increased HOA dues. |
If you already have a lawyer, ask for a recommended real estate attorney. Also ask friends and family for their recommendations. Your real estate agent or broker may also be able to provide a referral. Use Closing.com to find and compare real estate legal services in your area.
Make sure you select an attorney that specializes in real estate law.
How much does a real estate attorney cost?
Typically, attorneys have a flat fee schedule for providing closing services. For other real estate legal matters, most attorneys charge by the hour. Hourly fees vary greatly depending on location, firm, experience and expertise, so it pays to understand the fees upfront. Always ask for an estimate.
Here's how it works:
- A closing attorney is always appointed by the lender who also decides the fee. The fee is flat and most often paid by the buyer/borrower. The closing attorney oversees the closing but also looks after the interest of the lender. He is a neutral party between buyer and seller.
- In some states, the lender will give the buyer/borrower a list of closing attorneys to choose from.
- If there is a case where the buyer/borrower wants to use a certain closing attorney, the lender has to approve that attorney. This is rare.
- If a buyer and/or seller wants an attorney to also be present at the closing, they can hire that attoreny who will charge a separate fee.
Smart Tips
• If you have a specific problem, such as a tax issue or a disclosure issue, make sure the attorney you select is experienced in that area of the law.
• If you want a lawyer to be present at closing or to review a set of documents, ask for a fixed fee.
• If your real estate attorney charges by the hour, ask in advance for an estimate.
• If you are in a dispute with the seller, ask your real estate agent to assist in getting it resolved. Experienced agents are often skilled at problem resolution and may be able to save you the cost of hiring an attorney.
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