In Florida, a title company or law firm can close your real estate transaction. Why go with one over the other? It surprises people to learn that the cost of an attorney closing your real estate transaction is often the same as a title company. The best argument for using an attorney over a title company is that the cost is the same, but the potential value an attorney can bring to the transaction is much greater. Here are some of the benefits of hiring a real estate attorney for your real estate transaction:
- Price – Hiring an attorney to conduct your real estate closing is typically the same price as hiring a title company.
- Review – An attorney can review your contract and provide legal advice before you sign the contract.
- Negotiation – An attorney can negotiate on your behalf before and during the real estate transaction.
- Knowledge – An experienced real estate attorney will likely have more knowledge than a title agent, processor, or closer at a title company.
- Legal advice – An attorney can provide legal advice, even outside the scope of the real estate transaction. Title agents, processors, and closers cannot. The only way to receive legal advice when using a title company is if the title company has an attorney on staff.
- Legal entities – If you intend to close using an entity, such as an LLC, corporation, or trust, an attorney can assist you with forming such entities and advise what the best entity is for your situation.
- Clear title – While a title company can clear title, if the title company does not have an attorney, they may run into difficulty with complicated title issues.
- Closing with open title issues – It is not uncommon for closings to occur with open title issues if a title insurer is still willing to insure the property. An attorney can advise what the legal ramifications are when closing with open title issues.
- Legal issues – If there are legal issues involved in the real estate transaction, such as, probate, dissolution of marriage, a contractual dispute or any other legal matter, an attorney will likely need to be involved.
- Draft legal documents – While a title company can prepare generic closing documents for your real estate transaction, the legal documents a title company can prepare without an attorney is limited.
- FIRPTA – When the seller is foreign, an experienced real estate attorney can evaluate whether FIRPTA applies and explain the ramifications of FIRPTA.
- 1031 Exchange – An attorney can provide information about 1031 Exchanges and evaluate whether a 1031 Exchange makes sense for your situation.
The above are just some of the benefits of hiring an attorney for your real estate transaction. The big takeaway is that hiring a real estate attorney for your real estate transaction is typically the same price as hiring a title company, but with an attorney there is much more upside.