The Attorney Role in a Real Estate Closing

A real estate closing is the final meeting, or final sequence of steps, where a property changes hands. Money is paid, the deed is signed and recorded, the loan is funded, and the keys are handed over. Many people find the stack of documents overwhelming. An attorney may be part of the closing, depending on the state, and their role can range from reviewing paperwork to coordinating the transaction. This article explains that role in general terms. It does not describe what happens in every closing or in your state.

Who is involved

A closing usually involves the buyer, the seller, the lender if the buyer is financing the purchase, and a party that handles the funds and recording. That party may be a title company, an escrow company, or an attorney. In some states, one attorney represents the buyer, another represents the seller, and the closing is held in an office. In others, a closing agent collects the funds and records the documents without acting as anyone's lawyer.

It is important to know who represents whom. An attorney hired by the seller does not generally represent the buyer, even if they are present at the closing. If you are unsure, ask who the attorney works for and whether you need your own counsel.

Documents you may see

Expect a set of documents, some of which are required by law and some of which are customary in your area. The deed transfers ownership from the seller to the buyer. A mortgage or deed of trust secures the loan, depending on the state. A promissory note states the loan terms. The closing statement shows the money coming in and going out, including the purchase price, loan proceeds, taxes, insurance, and fees.

For a mortgage, the lender usually provides a federal disclosure called the Closing Disclosure before closing. It shows the final loan terms and closing costs. Comparing it with the earlier estimate and with the purchase contract is one of the most useful things a buyer can do before the closing date.

The Consumer Financial Protection Bureau's home buying guide describes the steps and documents that commonly come up during a home purchase, and it is a good reference before you sit down to sign.

What an attorney may check

An attorney may confirm that the deed correctly names the parties and describes the property. They may review the title commitment or title report to see whether there are liens, judgments, unpaid taxes, easements, or other recorded interests. If a problem appears, the attorney may work with the seller and the title company to fix it before closing. Some title problems can be resolved, while others may require a change in price or a decision not to proceed.

An attorney may also check that the figures on the closing statement match the purchase contract. Prorated property taxes, utility charges, homeowners association fees, and credits for repairs are common places where errors appear. Asking about any number you do not understand is reasonable, and you should not sign until your questions are answered.

Recording and funds

After signing, the deed and mortgage are usually submitted to the local recording office, often the county. Recording gives public notice of the ownership and the loan. Timing matters, because the recording can affect priority if other claims are filed. The title company or attorney usually handles this step.

Funds need to be transferred securely. Many closings use wire transfers. Because wire fraud is a known risk in real estate, verify any instructions by phone using a number you already trust, and do not rely on instructions sent only by email. If something looks wrong, stop and ask before sending money.

Questions to ask at the closing

• Who represents me, and who represents the seller?
• Does the closing statement match the purchase contract?
• Has the title been cleared, and is there any remaining issue?
• When will the deed be recorded?
• Do I have all the keys, access codes, and documents I need?
• Who do I contact after closing if a question comes up?

Do not feel rushed. If you do not understand a document, ask for more time or a copy to review. Closings are often scheduled for a specific time, but a careful review is part of the process.

After the closing

Keep copies of everything you sign and receive. This includes the deed, the closing statement, the loan documents, the title policy, and any receipts for funds you paid. Check later that the deed was recorded and that the mortgage payment information is correct. If your lender sends a notice you do not understand, get help before the due date.

Your title insurance policy protects you against certain problems with the title that existed before you bought the property. Read the policy and keep it in a safe place, because you may need it if a title dispute arises.

Where to get help

For general information about buying a home, the CFPB home buying guide and the USA.gov housing help page are good places to start. If you need a lawyer and cannot afford one, the USA.gov legal aid page explains how to look for free or low-cost help. Our real estate practice page lists lawyers who handle closings.

Frequently asked questions

Do I always need an attorney at a closing? Not always. Practice varies by state. In some places an attorney is normal, while in others a title company or escrow agent handles the closing.

Who should I call if the closing numbers look wrong? Ask the closing agent or attorney first, and ask your lender for an explanation. If the answer is unclear, consider a second review by a lawyer before you sign.

What is the difference between a deed and a title policy? The deed is the document that transfers ownership. A title insurance policy protects you against certain title problems that were not discovered before closing, subject to the policy's terms.

Can I back out at the closing? That depends on the contract and on any conditions it includes. If you have concerns, raise them before the closing date and talk with a lawyer about your options.

General information, not legal advice. Laws change and every case is different. Talk to a licensed attorney in your state about your situation.