Title Companies

When I lived in NJ I bought and sold 2 homes....and there are no title companies. People use lawyers...which I prefer, because title companies are supposedly "neutral"...but from my viewpoint, when I am making the largest purchase or sale in my life...I want someone who is 100 percent on my side...looking out for my interests.

So when I bought this house in Ca....I hired a lawyer on top of the title company because it was the largest purchase of my life and I wanted someone on my side.

When I bought the second home in nevada I went through a title company and bought from a builder of a complex of homes....and everything seems to have gone well. No lawyer though

I know that title companies are common place in NV and Ca.....and they are a way of life.

But does anyone see the need to have a lawyer in addition to the title company.

In theory. i mean.

Of course you can tell me that you used a title company and things went well...but I already know that may people including myself have used them without a lawyer.

Back east lawyers performed the same function title companies do out west: they research title, to look for flaws or defects.

No lawyer is needed if you use a title company; oh sure you could have one to advise you as to earnest money terms and conditions but the title company does the title research and the closing usually occurs at a title company escrow office.

Always make certain you have a policy of title insurance when you buy.

I remember when I got a contract for purchasing my first home. It was new construction. And I had an attorney look it over, and the first thing he said was, "you need to take this escalation clause out". There was an escalation clause which meant that the price of the house could go up if materials go up. THAT is what I mean when I say someone is looking out for me. It wasnt illegal. A neutral party would look over that contract and say its "reasonable".

Finally someone said it. This topic has been on my mind for years and years...I’m sure others too

I do a lot of real estate closings for clients in Illinois. I have had clients in other states such as Arizona and North Carolina who have had closings without attorneys as it is all done through the title company in those states. In those states, my clients did have me review everything anyway. I couldn't even find a lawyer in those states to represent them as they just don't do closings there.
I don't feel anyone should make such a major investment without an attorney. While most closings are pretty simple, there still are numerous things that can go wrong and numerous problems that can occur through the closing date and after. The title company is not representing either party--they are just performing a service. Most attorneys that do real estate have an affiliation with a title company, either as an agent or ownership, as the title fees are the only way an attorney can make any money on a closing. You easily spend 10 hours on a real estate deal and charge about $500. It is just a loss leader done as a courtesy for clients. The money comes in your split of the title fees. The $500 you pay the attorney to protect you seems a small cost in such a major investment.

Since I am ignorant of what can go wrong, and the title company is representing neither side....like I said...I would rather have someone there looking after my interest. I think its silly not to. I am all for do it yourself legal stuff you can find online like wills for people with non complex distribution of assets upon death. But geez, with the dozens of papers I sign blindly (no one reads them) at a closing.....I like to have someone with their eyes open.

Perfect example last night of why you need an attorney. Couple signed a contract to buy a small dump in a hick town in Wisconsin. In Wisconsin, they usually use lawyers. But it is a small town and only about 100K so they didn't use an attorney. Supposed to close this Friday. Buyer has mortgage ready and had inspection done yesterday. It turns out that although the listing agreement said it had central air, there is no A/C. The Buyer has to have possession cause he has nowhere to live.

What do they do? Title Company can't help. Now I have to get involved anyway.