Title Company vs. Attorney: Who Should Handle Your Closing?

A title company handles the paperwork, the title search, title insurance and the transfer of funds. An attorney can give you legal advice and represent you, which a title company cannot do. In most of the country, either one can run a residential closing. Which one you need depends on your state, your situation and how much is at stake in the deal. In Michigan, attorneys are not legally required to supervise residential closings, so the choice is yours.

This guide explains the difference in plain terms, shows where each one fits, and covers the situations we see most often with Detroit-area sellers: inherited homes, liens, foreclosure pressure and quick sales.

TL;DR

• A title company is a neutral party that searches the title, issues title insurance and coordinates the closing. It does not give you legal advice.
• An attorney can advise you, review documents and represent only your interests. That matters most when something is unusual.
• Some states, such as Georgia and South Carolina, require an attorney at closing. Michigan does not.
• For a simple sale with a clean title, a title company is usually enough. For an inheritance, a lien, a divorce or a deed question, add an attorney.
• You can often use both. Many sellers hire an attorney for a one-time document review and let the title company run the closing.

Table of Contents

• What a title company does
• What a real estate attorney does
• Side by side: title company or attorney
• Which states require an attorney?
• Is a title company cheaper than an attorney?
• When a title company is enough
• When you should add an attorney
• What this means if you sell for cash
• A practical way to decide
• Our perspective
• Selling a Detroit-area home and want a clear path?
• FAQ
• Sources

What a title company does

A title company, sometimes called a settlement or escrow agent, acts as a neutral third party between the buyer, the seller and the lender. Its work is mostly administrative and insurance related. According to the American Bar Association’s residential real estate FAQ, title companies and closing agents perform title searches, issue title insurance and make sure documents are recorded.

Here is what that looks like in practice:

• Title search and examination. The company looks through public records for liens, unpaid taxes, easements and ownership gaps. The ABA’s consumer guide explains that these “title exceptions” can include things like easements that give utility companies the right to enter the property.
• Title insurance. A policy helps protect against hidden defects such as forgeries or undiscovered liens.
• Closing coordination. The company collects signatures, receives funds, pays off existing mortgages and liens, and sends the deed to be recorded.

The key limit is this: a title company does not provide independent legal advice. If you have questions about your legal rights, how a deed is structured or a complicated contract obligation, the ABA says you need to hire your own attorney.

What a real estate attorney does

A real estate attorney is a licensed lawyer who can interpret the law, explain your rights and represent you if a dispute comes up. Where a title agent processes documents, an attorney can tell you whether those documents are in your interest.

Common attorney tasks include:

1. Reviewing or negotiating the purchase agreement before you sign.
2. Reviewing the title commitment. The ABA notes that a title company prepares this document to outline requirements for the policy, and that it also lists exceptions that are excluded from coverage. An attorney can help identify objectionable items and work to have them removed or resolved before the transaction is final.
3. Advising on deed structure, for example whether co-owners hold title as joint tenants or tenants in common.
4. Handling probate questions, quiet title actions and disputes over who owns what.
5. Representing you if something goes wrong before or after closing.

One point trips up many people. An attorney who shows up at your closing is not automatically your attorney. The Consumer Financial Protection Bureau explains that other attorneys at the table, such as the lender’s counsel, do not represent you. Their duty is to their own clients. If you want an advocate who works only for you, you hire one yourself.

Side by side: title company or attorney

The table shows why the question is rarely either/or. The two professionals do different jobs, and some transactions need both.

Which states require an attorney?

The rules vary by state. The CFPB says the roles of title companies and closing attorneys differ from place to place. In most of the country a title company or settlement agent handles the closing. In some states, particularly in the Northeast and South, a closing attorney is required. Georgia and South Carolina are examples where an attorney must supervise the closing.

Because this changes with state law and local practice, check your own state before you assume. Your state bar association, your state’s department of insurance or a local attorney can confirm what applies to you.

Michigan: attorney optional

Michigan is a state where you can close without an attorney. The Michigan Bar Journal states that Michigan law does not currently require attorneys to supervise real estate transactions. That gives sellers flexibility, but it also puts more responsibility on you.

The same article raises a fair concern. Because there is no mandate, some consumers may go without protection they would have had elsewhere. It also describes a common custom in which title companies draft deeds and then name the listing agent as the drafter. Drafting a legal document is the practice of law, and decisions such as how co-owners should hold title can have lasting consequences. If you are in that position, a licensed attorney is the right person to ask.

Is a title company cheaper than an attorney?

Usually the two are not direct substitutes, so a flat price comparison can mislead. A title company charges for title work, insurance and closing services. An attorney typically charges for legal time, which varies by the lawyer and the complexity of the file. Neither cost is the same everywhere, so ask for a written quote from each before you decide.

One piece of cost advice is well documented. The CFPB reports that borrowers who shop around for closing services, including title insurance and settlement fees, can save roughly $500 on closing costs. You are not required to use the providers a lender or real estate agent recommends. The CFPB also points out that a typical purchase takes about 22 hours of staff time for title search, examination and closing services, and that can double to 45 hours when unusual defects turn up. Complicated files cost more because they take more work.

If you are selling with a traditional agent, the closing fees are only part of the picture. We break down the rest in our guides to seller closing costs in Michigan and hidden fees in a traditional home sale.

When a title company is enough

For many sellers, a title company is all that is needed. That is typically true when:

• You are the sole owner and your name is the only one on the deed.
• The mortgage is straightforward and will be paid off at closing.
• There are no liens, judgments or unpaid taxes beyond the ordinary.
• The purchase agreement is a standard form and you understand every line.
• The buyer is a known quantity with a clear plan to close.

In this case the title company does exactly what you need: it confirms the title, pays off what is owed, collects the funds and records the deed.

When you should add an attorney

The ABA and CFPB guidance points the same way. If your situation involves legal questions that a neutral agent cannot answer, bring in your own lawyer. These are the situations we hear about most from Detroit-area homeowners.

You inherited the house

Inherited property often comes with unanswered questions: who has legal authority to sell, whether probate is finished, whether multiple heirs must sign, and whether the deed was ever updated. A title company can flag a gap, but it cannot advise you on how to fix it. A probate or real estate attorney can. Our guide to clear title on an inherited home walks through what heirs should know before they list.

There is a lien or a title problem

Liens, unpaid taxes, old mortgages that were never discharged and contractor claims can all show up in a title search. A title company will list them. An attorney can advise you on whether a claim is valid, how to negotiate a payoff or whether a court action is needed. Read more in our article on selling a house with a lien, and on how title issues in Detroit affect a sale.

You are facing foreclosure or financial hardship

When the clock is running, you need someone whose only job is protecting you. Foreclosure timelines, redemption rights and negotiation with a lender are legal matters. A title company is neutral by design and will not advise you. If you are behind on payments, talk to a real estate or foreclosure attorney, or a HUD-approved housing counselor, before you sign any sale agreement.

You are signing something unusual

Seller financing, a lease-back, a contract that mentions contingencies you do not recognize, or a deed that adds or removes a name: any of these is worth an hour of an attorney’s time. The ABA suggests an attorney review the title commitment before closing, and that advice applies with more force when the document is unfamiliar.

A further reason for a second opinion

In many transactions, the closing attorney or title agent relies on third-party abstractors to search the land records. An ABA Probate & Property article notes these abstractors often limit their liability by contract, so an error in the search can be harder to recover from than most people expect. A review by your own professional gives you one more line of protection.

What this means if you sell for cash

A cash sale to a local buyer takes some steps out of the process. There is no buyer’s lender, so there is no appraisal or underwriting delay, and the deal depends less on a mortgage approval. That is why cash closings can be fast. But the legal and title side of the sale does not disappear. The deed still has to transfer, liens still have to be paid, and the title still has to be examined.

So the same question applies: do you need a title company, an attorney or both? The answer follows the same logic.

• Clean title, one owner: a title company handling the closing is typically all you need.
• Heirs, liens, a divorce or a disputed deed: have your own attorney look at the paperwork before you sign.

For a side-by-side look at how the process differs, see our traditional vs. cash sale closing guide.

A practical way to decide

Use this short checklist before you commit.

1. Check your state’s rule. Find out whether your state requires an attorney at closing. In Michigan it does not.
2. List what is unusual. Multiple owners, an estate, liens, a recent divorce, a missing deed or a foreclosure notice all count.
3. Ask who works for whom. Anyone at the table who is not your own attorney does not represent you.
4. Get written quotes. Compare fees from at least two providers. Shopping around is one of the few reliable ways to lower closing costs.
5. Read the title commitment. Look at the exceptions list, and have an attorney review it if anything is unclear.
6. Decide on the split. Many sellers pay an attorney for a one-time review and let a title company run the closing. That often costs far less than full attorney handling and still gives you real advice.

Our perspective

We have bought homes from Detroit-area owners for more than 16 years, and we see the same pattern. Most sellers do not get into trouble because they chose the wrong closing provider. They get into trouble because they signed something they did not fully understand while under pressure: a foreclosure date, a repair bill, an estate with several heirs who disagree.

Our view is simple. A title company is a good fit for the mechanics of closing. It is not your advocate, and it is not designed to be. If your situation has any legal wrinkle, an hour with an attorney of your own choosing is inexpensive protection, and we would rather you have that advice than not. A fair offer should hold up when your attorney reads it.

When you sell to us, the offer is for the house as it stands. There are no realtor commissions, no repairs and no cleaning, and we cover standard closing costs. We encourage you to ask us anything about the process, and to have your own advisor review the paperwork if you want that extra assurance.

— Real Estate Team

Selling a Detroit-area home and want a clear path?

If you own a house in Metro Detroit and want to sell it as-is, you can request a fair cash offer. We give offers within 24 hours and can close in as little as seven days. If you would like to see the steps first, read how selling your house for cash works. There is no pressure, and you are welcome to run any agreement past your own attorney.

FAQ

Should I use a title company or an attorney?

For a routine sale with a clean title, a title company is often enough in states that do not require an attorney. If you have legal questions, an inherited property, liens or an unusual contract, hire your own attorney. Many people use both, with the attorney reviewing documents and the title company running the closing.

Do I need an attorney to close in Michigan?

No. Michigan law does not require attorneys to supervise residential real estate closings. You can still choose to hire one, and it is wise to do so when the sale involves complications like an estate or a title defect.

Does a title company work for me?

Not as your legal representative. A title company is a neutral party that handles searches, insurance and funds, and it does not give independent legal advice. The CFPB also notes that other attorneys at closing, such as the lender’s counsel, do not represent you unless you hired them.

Can I choose my own title company?

Yes. The CFPB says you are not required to use the providers your lender or real estate agent recommends, and that shopping around can save about $500 on closing costs. Ask for written fee estimates from more than one provider before you decide.

Are title companies run by lawyers?

Sometimes, but not necessarily. Some title companies are affiliated with law firms, and some law firms operate their own title agencies. Ask whether the person closing your file is a licensed attorney, and whether they are acting as your lawyer or only as a settlement agent.

This article is general information, not legal advice. For questions about your own deed, estate or foreclosure, speak with a licensed Michigan attorney.

Sources

• CFPB: Shop for title insurance and other closing services
• CFPB: Do I need an attorney or anyone else to represent me when closing on a mortgage?
• CFPB: Who should I expect to see at my mortgage closing?
• American Bar Association: Residential Real Estate FAQs
• American Bar Association: Buying or Selling a Home, title search
• ABA Probate & Property: The Role of the Lender’s Lawyer in Spotting and Fixing Title Problems
• Michigan Bar Journal: Should attorneys be required in residential real estate transactions?

Recommended

• Traditional vs Cash Sale Closing: 2026 Seller’s Guide
• Close in 7 Days: Metro Detroit Title Company for Safe Cash Sales
• Best Same-Week Home Closing Options: A Practical Guide
• Close in 7 Days With a Cash Sale Despite Detroit Title Problems