When it comes to real estate transactions in Florida, one important decision you'll need to make is whether to use a title company or an attorney to handle your closing process. Both options will provide the same core closing services to effectively facilitate a successful closing. In this blog post, we'll explore the key differences between using a title company and an attorney for real estate closings in Florida to help you make an informed choice.
Of note, title companies are typically only available in the closing if they are the ones providing title insurance. As such, if you are the seller and the buyer selects an attorney for closing, you typically have to use an attorney for your side of the closing (the same as the buyer or you can choose a separate one). If the buyer selects a title company to hold escrow and provide title insurance, the seller may choose to utilize that same title company for their closing or they can choose a separate attorney.
1. Title Search and Insurance:
Title Search: A title company is primarily responsible for conducting a thorough title search to ensure that the property you are purchasing has a clear title, free of any encumbrances or claims. They will look for issues like outstanding liens, judgments, or property disputes.
Title Insurance: Title companies also provide title insurance policies to protect both the buyer and lender against unforeseen title defects or claims that may arise in the future. The attorney's office secure title insurance from other vendors such as First American Title in our immediate area.
2. Closing Services:
Title companies often have experienced professionals who can guide you through the closing process. They will handle tasks such as preparing closing documents, coordinating the exchange of funds, and ensuring that all necessary paperwork is properly executed.
Using a title company can be a cost-effective option compared to hiring an attorney. Title fees are typically lower than attorney fees, which can help reduce your overall closing costs. Often when you use an attorney's office you are paying a higher fee for "access" to the attorney while the office staff is actually the ones managing the closing tasks just like a title company would do.
Title companies specialize in real estate transactions and typically have a streamlined process for handling closings, which can lead to quicker and smoother transactions.
REAL ESTATE ATTORNEY
1. Legal Expertise:
An attorney with real estate law expertise, can provide legal advice and guidance throughout the transaction. They can help you navigate complex legal issues that may arise during the process.
2. Contract Review:
Although Florida uses standard real estate agreements and contracts, attorneys can review and draft legal documents as needed to ensure your interests are protected. They can provide insights into the legal implications of the contract.
If unexpected legal issues or disputes arise during the transaction, an attorney can represent your interests and work to resolve these issues effectively. Keep in mind that this support will often come as an extra cost beyond their quoted closing fees.
4. Closing Services:
Real Estate Attorney's offices will also have experienced office staff who handle tasks such as preparing closing documents, coordinating the exchange of funds, and ensuring that all necessary paperwork is properly executed.
Which Option Is Right for You?
The choice between a title company and a real estate attorney for your real estate closing in Florida depends on your individual circumstances and preferences. Here are some factors to consider:
Complexity of the Transaction: If your transaction involves complex legal issues or unique circumstances, hiring an attorney may be the wiser choice to ensure that your interests are well-protected.
Budget: If you are looking to minimize closing costs, a title company may be the more cost-effective option.
Peace of Mind: If you value having legal expertise on hand, an attorney may provide you with greater peace of mind.
Process Efficiency: Title companies typically have the most buttoned up closing processes around. There focus on closings is an area of expertise that brings value for smooth closings.
Personal Touch: Under both models, you will have an assigned closer who will serve as your main contact. In the title company it is usually a closing manager. In the attorney's office it is typically an administrative closer or paralegal.
In Florida, both title companies and attorneys play crucial roles in the real estate closing process. Your choice should align with your specific needs, the complexity of the transaction, and your budget. Whether you opt for the specialized services of a title company or the legal expertise of an attorney, the goal is the same: a successful real estate closing that protects your interests and allows you to enjoy your new property with confidence. Based on your preference, I am happy to recommend options that I have had good success with on smooth and organized closings.