What You Need to Know About Residential Real Estate Closings in North Carolina
Congratulations! You finally found your dream house (or, if you already own your dream house, a great interest rate on a refinance of your mortgage), and now, all that stands between you and home ownership (or a lower monthly payment) is a series of complicated phone calls and meetings with real estate brokers, mortgage brokers, your attorney, and a TON of paperwork. It may be tempting to try to simplify the process by allowing your bank and title insurance company to handle your closing in house, or using an attorney selected by your bank, and many banks will try to tell you that this is the easiest way to handle your closing. However, what banks will not tell you is that, in North Carolina, an independent North Carolina-licensed attorney MUST conduct your closing and YOU have the right to select an independent attorney of your choosing.
North Carolina title laws are designed to protect you. It is illegal for a closing in North Carolina to be handled by a title insurance company, a bank (which will hold its own interests over yours), or even a paralegal (without supervision by an independent North Carolina-licensed attorney). Under North Carolina law, an attorney (licensed in North Carolina) must conduct the closing, which includes, but is not limited to, title abstracting (searching), title review, applying for and obtaining title insurance, advising on and overseeing the execution of closing documents, and disbursing closing funds.
If your bank tries to tell you that they can handle your closing in house, tell them that to do so would be breaking North Carolina law and may subject them to criminal (Class I misdemeanor) and civil penalties. Furthermore, insist that you have the right to select an independent attorney of your choosing.
Your bank may try to tell you that hiring your own attorney to conduct the closing will cost more than if the purchase/loan is closed in house. This is not true. Attorney fees for a residential closing in North Carolina are very reasonable, and an independent attorney will be more likely to protect your interests. Your experienced attorney will be diligent in reviewing title, finding any title issues, and notifying you of any title issues found. You can then work together in resolving the title issues or, if necessary, terminate your contract for purchase.
Scott K. Burger has experience with residential real estate transactions and has closed many residential purchases and refinances. If you are buying or refinancing residential (or commercial) real property in North Carolina, Scott can help you in all phases.
