Unlike most states, Florida does not demand the useof a title agent attorney during a real estate transaction. Buyers and sellershave the liberty of using a lawyer or a title company to oversee the closing ontheir property acquisition or disposal transaction. This often causes thetransacting parties to wonder why they need to hire a real estate title lawyerinstead of a Florida title closing company to handle their closing.
In this post, we will share with you four reasonswhy a title company is not a suitable substitute for an experienced realestate lawyer.
AdvantagesTo Hiring A Real Estate Attorney for Property Transactions
1. A title company typically works for the titleinsurer, whereas real estate attorneys work for whoever hires them.
Once hired, the title agent lawyerrepresents that client throughout the transaction, oversees the transaction tocompletion, and looks out for their clients’ best interest while an advocatefor their client. The title company’s role, on the other hand, is to preparethe basic closing paperwork required by the title insurer to close the transactionand issue the title insurance policy.
2. Title agents cannot provide legal advice.
When there are challenges or questions, thebuyer/seller cannot turn to the title companies in Broward County, Florida,for help or advice. One of the issues that come up is how to acquire title tothe property, which has tax and legal ramifications. A title agent cannot offeradvice in this situation, but an attorney owned Title Company can. Realtors,buyers, and sellers benefit from working with lawyers since the attorney canreview the sale contract and answer legal questions during the negotiationprocess; title companies cannot.
3. Title agents cannot deal with non-standard forms,address problems in the sales contract, create contract addenda, or correctlegal issues that affect the title.
This is vital because if an issue arises, correctivepaperwork may need to be obtained or created. Lawyers can provide legal counselon the best way to handle the matter, as well as prepare necessary documents,title agents cannot. Depending on the issue, a title agent will have to sendparties out to hire an attorney to handle specific complications. Not having anattorney delays the closing or even cause the transaction to fall apartentirely.
4. The costs of hiring an attorney vs. a titlecompany are comparable.
Many closing costs, such as documentary stamps, title insurancepremiums, and recording costs, are set by the State of Florida. They are thesame whether a lawyer or a title agent is facilitating the process. In somecases, using an attorney can actually save the parties money by performingdouble duty as an attorney and a title agent; a title agent cannot do the same.
