One of the most common questions buyers and sellers of real estate ask is what is the difference between using a real estate attorney rather than a title company to handle the closing and is one better than the other.
Although requirements, laws and tradition vary from state to state and even county to county, we will focus on Florida law. Title insurance rates in the state of Florida are promulgated; therefore, the cost of your title insurance policy will be the same no matter where you purchase it. There should not be any difference in the cost of the policy from attorney to attorney or company to company.
However, closing costs will vary depending on where in the state you are purchasing property, but within a county there should be little difference in cost between companies. Although an attorney or title company can charge whatever they want for the settlement fee, the market usually dictates a fairly uniform cost. Therefore, there should not be much of a difference in cost for closing with an attorney instead of a title company.
Benefits to using an attorney for closing are as follows:
- ADVICE: In Florida a Realtor can assist with filling out a preprinted contract but cannot provide legal advice that is reserved for attorneys only. An attorney can review the contract and provide legal advice. A contract to buy real estate is a legally binding document; thus, if there is an issue it can be very difficult and potentially expensive to fix.
- PREPARATION OF DOCUMENTS: Many times when property is bought and sold, there are certain legal documents that only an attorney can legally prepare. If anyone else creates these documents it’s the unlicensed practice of law and is illegal.
- NEGOTIATIONS: If negotiations are required either with the bank or another party, only an attorney can legally represent you in the negotiation process. An attorney is familiar with the process, the law and has your best interest in mind.
- TITLING PROPERTY: Attorneys are trained on the best ways to hold the property. Whether it’s as an individual or as a couple, in trust or as a corporation, an attorney is allowed to advise the buyer for legal and tax purposes on the most advantageous way to own the property.
- PROBATE: One of the only guaranties in life is that people will die and some of those people who die will own real estate. When the owner of the property dies that property may have to go through a process known as probate depending on how it is legally held. This is another instance where an attorney is needed. Although not all attorneys handle probate cases many do and they are essential to closing the sale in a timely matter.
- HELD TO A HIGH STANDARD: Attorneys are governed by the Florida Bar and are held to strict ethical standards. In addition attorneys are required to take extensive continuing education classes to keep up on the ever changing legal profession.
As you have seen when buying or selling real estate in the state of Florida, both a real estate attorney and title company can get the job done. The difference is, for basically the same cost, a real estate attorney will protect your interest as well as have the ability to do more for you and the transaction.
For more information contact Nepola Yonta Attorneys at Law
