The Indispensable Role of Lawyers and Title Companies in Real Estate Transactions
The main difference between a real estate attorney and a title company in a real estate transaction is that a real estate attorney can provide legal advice, while a title company cannot:
Legal advice
A real estate attorney can provide legal advice and guidance throughout the transaction, including when disputes arise. A title company cannot provide legal advice or answers to legal questions.
Role in the transaction
A real estate attorney has a broader role in the transaction, including drafting documents, advising on negotiations, and representing the client at closing. A title company's role is limited to preparing basic documents and issuing title insurance.
Conflicts of interest
A title company works for the title insurer and may have conflicts of interest, while a real estate attorney focuses on the client's best interests.
Here are some other things a real estate attorney and a title company do in a real estate transaction:
Title searches
Both a real estate attorney and a title company conduct title searches to check the property's history and title.
Liens and debts
Both a real estate attorney and a title company help resolve lien and title matters, and ensure that debts are paid off at closing.
Title insurance
A title company issues title insurance to the buyer once all requirements have been met.