Who Chooses and Hires the Closing Attorney?

i know when closing with a attorney as a buyer im responsible for hiring one what about when its time to sell?

@rob-g I try to control who the closing agent is on both transactions, because I know which ones are most competent. Even if I’m not paying for the closing costs on a transaction, I can still steer us toward the best title company or closing attorney (provided I know a good one in the market where we’re working).

If you don’t have a good one in your market yet, you can always check out our community-curated list of investor-friendly closing agents.

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@retipsterseth yea I’m in a state where attorney is mandatory to close so I was trying to avoid paying for the attorney on both transactions I researched something that said the buyer is responsible

@rob-g it’s usually dictated by whatever is in your purchase agreement. States might have a ‘norm’ that most people go by, but if the PA clearly states who is responsible to pay for what, this can usually override whatever the established norm is in that state.

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@retipsterseth thanks so much Seth makes sense :handshake:

Typically, the seller is responsible for hiring the closing attorney, but it’s best to check your sales agreement or ask your real estate agent to be sure.

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When I’m the buyer I choose. I’m the one before title insurance. When I’m the seller, well now we’re negotiating

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Seth brings up a good point–you need to find out if your state laws require you to use an attorney for closing. Is there a good online database where you can plug in he question and your target state and get the answer?

For my part, I mostly function in Pennsylvania, although I have also bought land in Mississippi, Missouri and Tennessee. Does anyone know off the top of their heads what the situation is in any of those states?

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Thank all of you for the advice

I typically specify the title company for closing (or have the contract amended to state my preferred title company). Often the buyer’s agent will write the contract in the form of an offer and specify the title company, so when I am the buyer, I ensure my agent and I are aligned on the title company. If I have worked in the area before I often have one that I am familiar with and like. If not, I lean on my agent for suggestions. If the seller pushes back on my suggested title company, I’ll inquire as to why. Sometimes if the owner has bought the property within the last couple years the title company they used previously may be able to do a quicker title search /closing and I’ll go with them unless my agent advises against that company. If that is not the case, I’ll use the “I’m the one that is going to be relying on title insurance, so I’d like to be the on specifying the title company” and that usually cause the seller to agree. Technically, it’s not the title company that issues the title insurance but instead the underwriter through which they purchase the title insurance but I’ve never had a seller argue that point.

When selling, if the buyer or their agent writes the contract with a title company different than I’d prefer, I typically go back with the name of the title company I used on the purchase side – using the argument “the title company I used when buying has already done the heavy lifting on the title work when I bought it so they should be able to do simply update their title work for the period I owned it and allow us to close quicker and more efficiently.”

All that being said, unless I know (via my research, an agent or colleagues in the industry) that a title company suggested (or insisted) by the other party is a terrible title company, I won’t lose a deal over which title company is used.

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