Most people find real estate transactions to be confusing. While they may seem simple on their face, there are a lot of intricacies that, if mishandled, can result in an undesired outcome, costing you a lot of time, money, and stress.
That’s why a lot of people who are navigating a real estate transaction, whether that be the purchase of a home or the securement of commercial property, choose to work with a real estate attorney.
But you might be wondering how a real estate attorney differs from a closing company that specializes in titles and escrow. It’s a good question. Many people conflate the two, thereby leading them to believe that they don’t need an attorney on their side because they have the closing company. But the two are quite different.
Key differences between a closing company and a real estate attorney
To make sure you’re protecting your interests as much as you can, you should understand the differences between a closing company and a real estate attorney. That way you can surround yourself with the support and expertise that you think you need on your side.
Here are some of the key differences between a closing company and a real estate attorney:
- An attorney protects you from risk: A closing company doesn’t represent you. Therefore, they’re not interested in advocating for what’s best for you. Instead, they just want to close the deal. A real estate attorney, on the other hand, puts your interests at the forefront. Therefore, your attorney can help you address disputes over material terms of the purchase agreements and resolve any title deficiencies that may exist, all with an eye on getting you the best outcome possible.
- An attorney can negotiate on your behalf: A closing company won’t engage in negotiations. A real estate attorney will. This means that by having a legal ally in your corner, you can ensure that you’re pushing for the best outcome possible.
- A closing company won’t help resolve title problems: As you approach closing on your real estate deal, you might find that there are title issues that threaten the finalization of the transaction. Since a closing company won’t hash these problems out for you, you may find yourself rushing for legal representation to salvage the deal. By having one of these legal professionals in place early on in the process, though, you can head off any unexpected title issues.
- A real estate attorney can answer your questions: A closing company might be able to answer your general questions about the process, but they’re not going to be able to give you any sort of guidance. This can leave you with uncertainty about how to progress through the transaction process in a way that protects your best interests. You may need a real estate attorney to give you the guidance that you need to comfortably and confidently reach a positive result in your case.
Prepare yourself for a successful real estate transaction
When you engage in a real estate transaction, you should hope for the best but prepare for the worst. This means that you should expect unanticipated issues to come up that threaten your interests.
Fortunately, you might be able to head off those issues by educating yourself about the transaction process and surrounding yourself with the help that you need.