There are many professionals who can provide assistance during a real estate transaction. Many buyers and sellers immediately start looking for a real estate agent to assist them. They may also rely on a local title company to both prepare for the transaction and manage the closing process.
Sometimes, buyers also decide to hire real estate attorneys. Those unfamiliar with real estate transactions in Florida may question the necessity of hiring a lawyer in addition to an agent and a title company. Lawyers provide different services than agents do, and agents often hire lawyers as well.
Some of the services provided by lawyers may overlap with title company services. How does a lawyer’s advocacy differ from the services provided by a title company?
Title companies offer limited services
The average title company serves a few main roles in a real estate transaction. Title employees investigate the history of a property to validate that the title is clear and can transfer to a new owner. The title company can then issue policies protecting buyers and their lenders against title claims.
A title company can hold escrow funds until after the signing of documents. Title companies also often provide the space in which the closing actually occurs. They may also put together the documents that the parties sign to actually complete the transaction.
A lawyer can provide the same title research services as a title company. However, they may do a more thorough check because their focus is on white-glove client service, not turning out a large volume of policies every day. Title companies do not have a fiduciary duty to their customers like a lawyer does to their clients. Title companies tend to put profits and therefore efficiency above most other concerns.
A lawyer’s role is to educate and advise their client so that they make choices that are in their long-term best interests. They can also provide insight into title issues and similar concerns that could undermine the value of a property. Finally, it is worth noting that a lawyer can handle the negotiation process and can even draft customized documents for a buyer making an offer on a property.
Choosing to work with a local attorney to provide title services and support throughout a residential real estate transaction can be a smart decision. Attorneys can benefit both those conducting real estate transactions and the agents representing them.