Title Company or Attorney for Closing? VA, MD and DC

In Virginia, Maryland and DC, you do not need to hire your own attorney to close on a home. A title company's settlement agent can conduct the closing in all three. DC has one extra rule: preparing the deed is legal work there, so DC title companies use a DC-licensed attorney for the documents, while a notary or settlement agent can still run the signing.

Hiring your own attorney is still worth it in some situations, covered below.

Who can run a closing in each jurisdiction

Virginia

Virginia law lists who may act as a settlement agent: a title insurance agent or company, a Virginia attorney, a licensed broker or an authorized financial institution, each registered as required (Va. Code §§ 55.1-1003 and 55.1-1014). The buyer chooses the settlement agent, and a seller cannot make a particular one a condition of the sale (§ 55.1-1006). For more, see who chooses the title company in Virginia.

Maryland

Maryland does not require an attorney to conduct a residential settlement. The Maryland Insurance Administration says licensed title insurance producers and title insurance producer independent contractors, including but not limited to attorneys, may provide escrow, closing and settlement services. Many Maryland settlements still involve an attorney, but it is not a legal requirement for the closing itself.

Washington, DC

In DC, preparing a deed or other document that affects title to real property is the practice of law (D.C. Court of Appeals Rule 49(b)(2)(A)). That is why DC title companies work with a DC-licensed attorney for the deed and title documents. The signing itself can be conducted by a notary or the title company's settlement agent, and the attorney's work is usually part of the settlement fee rather than a separate hire.

Federal law protects your choice everywhere

Under the Real Estate Settlement Procedures Act, a seller cannot require you to buy title insurance from a particular title company as a condition of the sale (12 U.S.C. § 2608). An agent, lender or builder can recommend one, but the choice is yours.

When to hire your own attorney anyway

The settlement agent handles the closing for both sides, but it does not represent you. Consider your own real estate attorney when:

• you want the contract reviewed before you sign it;
• you are buying or selling without agents (a FSBO sale);
• the property is part of an estate, a divorce or a trust;
• the title search turns up a problem that needs legal work to clear, such as a boundary dispute or a missing heir;
• the deal involves an entity, a lease-back or other unusual terms.