Real Estate Lawyers vs. Title Companies
When you have finally decided to sell your home, where do you go for help? Is it better to consult a real estate lawyer or a title company? In order to know which to consult, it is better if we first get to know the difference between the two.
Real Estate Lawyers
Attorneys who specialize in laws that relate to real estate and ensure that the interests of a seller are met in a transaction are Real Estate Lawyers. They are the ones who can act as escrow agents since they are able to hold a seller’s earnest money and downpayments. They also help sellers with their requisite documentation. Real Estate Lawyers are capable of helping you understand the legalities that are involved in the sale transaction.
In the case of a lender’s lawyer not handling a closing, a real estate lawyer is capable of doing so. The two most important responsibilities of a real estate lawyer are:
- Advising on the documentation process of a transaction
- Representing a seller at a closing
Aside from these, a real estate lawyer also negotiates any modifications that may appear in the purchase contract that the seller wants to incorporate. The real estate lawyer prepares the seller’s deed and accompanies the seller to the meeting with the buyer at the time of the settlement. The real estate lawyer can advise sellers on the tax implications that come with the home or property sale.
Title companies are basically insurance agencies that insure titles to lenders and buyers through a title that is declared free from any encumbrance that can eventually lead to financial loss.
Title companies can assure buyers that they can get their title on the home or property without any liens against it. A title company can also vouch for a title that is available on a particular home or property after ensuring that it is clear. Both parties can benefit from this service since their rights and interests will be protected in this process.
Most of the time, title companies insure a closing through a lawyer in order to fulfill certain requirements. It may also depend on the area where you are living as sometimes the closing process varies in different areas.
Keep in mind that title companies can hold the downpayment as well as close your home without any additional costs. There is also a likely possibility of title companies giving a discount on your title insurance if you have already used their services to refinance or buy your home or property in the past. Lawyers are also capable of closing your home or property and holing your downpayment however it may be for additional fees.
Lawyers may entail higher fees for writing contracts and in simple transactions, this may cause complicated negotiations. Nevertheless, the services of a real estate lawyer can be invaluable for most property sale transactions.