Do you need a real estate attorney to close in Maryland?

What does the law require?

I found three rules that matter. None says “you must hire a lawyer.”

1. Preparing a deed is the practice of law. The statute defines “practice law” to include “preparing an instrument that affects title to real estate” (Business Occupations and Professions § 10-101(h)(2)(ii)). A person must be admitted to the Bar to practice law (§ 10-206).
2. A deed must carry a certification to be recorded. Under Real Property § 3-104(f), a deed cannot be recorded unless it bears either the certification of a Maryland-admitted attorney that the attorney prepared it or supervised its preparation, or a certification by a party named in the instrument that the party prepared it. Mortgages and deeds of trust prepared by an attorney or by a party to them can be recorded without that certification (§ 3-104(f)(1)(iii)).
3. Settlements are run by licensed producers. The Insurance Administration says that “only licensed producers can conduct settlements in Maryland” and tells buyers to confirm a title company’s license with the agency before choosing it.

So the law does not force a lawyer into every closing. It does mean someone qualified must stand behind the deed, and the closing itself must be run by a licensed producer.

Who conducts closings in practice?

The Insurance Administration tells buyers to choose a title company after signing the contract, and a licensed producer conducts the settlement. The title agent does the title search, and the Bill of Rights below has the agent disbursing the funds. The Insurance Administration describes the steps:

• The agent searches the land records for open mortgages, judgments, unpaid taxes and other liens.
• If problems turn up, the company works to resolve them before closing.
• The agent issues the lender’s policy and, if you buy one, an owner’s policy.

I did not find a Maryland source stating what share of closings involve an attorney, so I do not give one. What the sources do say is that title agents cannot give legal advice, so no one at a title-only closing is there to advise you on the contract.

Your rights when choosing who closes

The Maryland Real Estate Commission publishes a Title Insurance Consumer’s Bill of Rights. The buyer has the right to:

• Choose the settlement agent and title insurer. Your real estate professional may suggest one, but you do not have to use it, says the Insurance Administration.
• Receive settlement cost information early and an itemized statement of the agent’s fees before agreeing to use the agent.
• Ask and get accurate answers about whether the property has a ground rent, lien, judgment or other impediment to ownership.
• Get the settlement statement the business day before settlement, and copies of everything you signed.

What does it cost?

Title insurance premiums are regulated by the Insurance Administration. The fees a title company charges for document preparation, conducting the settlement or other services are not regulated and differ between agents, so the agency suggests comparing several. I found no official source for a typical attorney fee, and the fee depends on the lawyer and the work, so ask for a written quote. For the other lines on your closing statement, see closing costs in Maryland and title insurance explained.

When is an attorney worth it anyway?

The statutes do not require one in these cases, but they are where legal advice matters most:

• Before you sign the contract. Title agents cannot advise on its terms.
• When the title search finds a lien, judgment or other problem.
• When you prepare your own deed. You would be certifying that you wrote it, and a mistake can cloud the title.
• When you face foreclosure. The Department of Housing and Community Development lists nonprofit legal services providers by county; see foreclosure in Maryland.