A non-lawyer cannot prepare deeds, affidavits, mortgages, and other legal documents related to a real estate transaction. Doing so could be considered the unauthorized practice of law. However, an exception is made for title companies. If a title company is issuing title insurance, then the title company can conduct the real estate closing and prepare legal documents necessary to issue title insurance. See The Florida Bar v. McPhee, 195 So. 2d 552 (Fla. 1967). It is not required for a title company to have an attorney on staff.
In The Florida Bar v. McPhee, the Florida Supreme Court held that title companies can:
• Charge for a title abstract.
• Review a title search.
• Draft documents to fulfill conditions described in a title commitment issued by the title company, but they cannot charge for drafting the documents.
• Conduct a real estate closing.
• Act as an escrow agent, but if no title insurance is involved, then they cannot draft legal documents and cannot do more than carry out instructions given to them by the parties to the transaction.
The Court held that title companies cannot:
• Render opinion concerning the status or marketability of title.
• Give advice on the methods of taking title.
• Give advice on the legal effect of any documents.
• Prepare contracts, deeds, mortgages, or other legal documents of conveyance of real property that are not necessary to fulfill conditions in a title commitment.
• Conduct real estate transactions that do not involve title insurance.
• Charge for things outside of the title insurance premium and conducting the closing.