The Added Cost Of An Attorney
Ahhh, we’ve all heard the advertisements at some point, “The truth is, using an Attorney in a Real Estate transaction typically cost no more than if you didn’t”
Like in New York, it only added a little over three thousand dollars for a buyer in truly “Junk Costs” to one closing above what the total “Title Costs” would have been in lets say the identical transaction in my home state of Florida. It is indeed amazing that anyone would require the use of an Attorney in a “average” home purchase, much less do it willingly.
One must admire the way in which attorneys use the English language. The KEY word in this statement is “Typically”. The fact is, an attorney does NOT issue a title policy. If you choose to use an attorney, you better expect to pay $500.00 on UP for their time. This is in addition to the normal title costs that occur with a closing.
You will still pay a settlement fee, you will still pay for the title policies, you will still pay for the title search and all the other charges that go with a closing PLUS you get to pay for an attorney to sit at your closing and do the exact same thing a title company would do for far less money.
What are the benefits? Frankly, as far as we’re concerned, NONE.
Why do we say that? A title policy is a insurance policy issued to you the Owner/Buyer and to the Lender which protects you against third party defects in the lien. The binders actually protect your investment.
An attorney most certainly won’t be doing it. They do nothing different than a title company other than the fact they order the title policy and insurance binders from the title company. Why on earth would someone willingly pay to add one more middleman? Especially a middleman that will typically complicate your closing, which can lead to delays.
So unless you are involved in a tremendously complex and unusual multi-million dollar real estate transaction or a commercial loan, hiring an attorney for title is like throwing good money away. Something no one would knowingly do!