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Lawyer for Real Estate Closing

Updated: March 28, 2023
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A lawyer for real estate closing prepares documents related to property mortgage, executes purchase agreements, and transfers title documents of properties. Furthermore, a real estate lawyer reviews or prepares all the records parties must execute while closing a real estate purchase.

What Does a Lawyer for Real Estate Closing Do?

A lawyer for real estate closing, also known as a real estate lawyer, is an attorney who is authorized to practice real estate law professionally and who holds the proficiency and expertise to advise clients involved in a real estate deal. Furthermore, in some circumstances, a real estate lawyer is also the individual who will remain in charge of taking the matters to state and local jurisdictions and filing a case on their client's behalf.

Besides, a professional lawyer can also look after a real estate closing when the property is purchased with a mortgage loan, and the lawyer may represent the title company or mortgage lender. Below are some key functions a lawyer for real estate closing manages.

  • Property title examination

    The property lender and purchaser like a clear title for the real estate property. In addition, without a valid ownership title, the deal may become much more complex. And upon receiving a real estate purchase contract or a recommendation from a mortgage or bank broker, the closing lawyer will check the title of the marketed property. The title assessment allows the buyer and the lender to evaluate the real estate title.

    The buyer needs to understand specific limitations of use, encroachments, easements, or whether the title is commercial and straightforward for the seller to transfer the property to the buyer. A lawyer for real estate closing will determine any current mortgages against the property that need to be fulfilled at closing to transfer the title.

    The lender will want an outline of what judgments, liens, and mortgages must get handled before or at deal closing. Furthermore, the title assessment allows the lender's underwriter to submit a concern about the status of the property title.

  • Deal Coordination

    A lawyer for real estate closing forms lines of communication between all parties concerned in the real estate transaction. The real estate closing lawyer not only speaks with buyers, lenders, and the seller but may coordinate with real estate agents, merchants, surveyors, the prospective homeowner's insurance company, the seller's mortgage holder (payoff proposal), the county tax division, home inspectors, contractors, adjoining property owners, homeowner organizations and the seller's lawyer.

    In addition, the real estate closing attorney must remain aware of all the problems that must get managed for the closing deal to go seamlessly, but must also often interact with numerous parties to ensure the timely execution of the transaction.

    Moreover, while a great deal of communication and coordination occurs throughout the real estate transaction, it is most effective when the real estate closing attorney starts drafting the settlement statement for closing and must interact with numerous parties on dates and amounts for closing the property deal.

  • Title Insurance Settlement

    Title insurance safeguards the purchaser and the property lender if a future issue is seen with the title. Once the title review is completed, a lawyer for real estate closing prepares an argument on the title presented to a title enterprise for administering a title binder, which is primary to getting title insurance.

    In addition, title insurance is optional for the buyer in a real estate deal if they do not want financing through a mortgage broker or bank.

    Nevertheless, it is necessary for almost all lenders when purchasing or refinancing real estate. Furthermore, from the purchaser's viewpoint, title insurance is highly advised to safeguard the purchaser on the title about claims of rights, interests, and liens against the subject property being bought. It is reasonably inexpensive and worth the cost.

    On the other hand, it is necessary from the lender's viewpoint because the lender seeks every guarantee to ensure the property goes into the right hands. It may also be convenient for the lender if it does not plan to market its note to another business to service that was not understandable at the time of closing the property loan.

  • Record and Disburse

    A lawyer for real estate closing is accountable for closing on the deals and allocating all funds. Furthermore, after examination and enactment of the actual real estate or loan closing tools, the closing lawyer reviews the regional registry one last time to revise the title and documents the deed and deed of trust.

    Additionally, the real estate closing attorney then administers a conclusive statement to the title business and settles the title company's dividend.

    The real estate closing attorney disburses any other costs and amounts associated with the trade, including any county taxes that are unpaid and payable, real estate brokerage fees, payoff funds for current loans.

    They also settle homeowner insurance premiums for the borrower/purchaser, homeowner association dues, pest inspection costs, home inspector fees, the bank or mortgage broker's charges, seller's earnings from the deal and the lawyer fees for closing.

What Does Real Estate Law Entail?

Real estate law comprises selling and purchasing real property, implying land and establishments. It also includes legal matters related to anything affixed to the facilities or property, such as fixtures or appliances. Attorneys specializing in the real estate domain guarantee that proper guidelines are followed during the purchase or sale of the property.

They may also be involved with how a real estate property is zoned for commercial or residential use. Real estate law includes property taxes, deeds, estate planning, zoning, and titles. Moreover, real estate laws differ by state and local administration. Lawyers must be authorized to practice where the trade takes place and stay up-to-date on any state or regional expansions that could affect a transaction.

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Key Terms

  • Buyers Agent: Real estate agents, generally termed real estate brokers, are the individuals who connect a possible customer with the property dealer. Thus, it wouldn't be incorrect to say that a buyer's agent is a bridge between the two, and two property agents are involved in a deal.
  • Interest: The sum you borrow under a property mortgage is the principal charge. However, the lender does not equip you with funds without any gain for themselves. That is why they count a specific claim to the loan you must settle over time.
  • Mortgage Broker: Like the real estate agent, these brokers act as a bridge between the lenders and property purchasers.


In a nutshell, purchasing a real estate property can be confusing and intimidating. Hence it is necessary to familiarize yourself with the various elements of the process. If you're unsure about the legal implications of your property purchase, let our real estate lawyer at ContractsCounsel help you execute the best possible deal on your behalf.

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