Attorney Closings and the Title Search

In NC, an attorney handles real estate closings and acts as the settlement agent, not a title company. The attorney either performs the title search in-house, or they hire a trusted company like Title Sleuth, LLC to perform the search under direct supervision.

Title searching and abstracting constitute the practice of law in NC. While title searches may be performed by a non-attorney like Title Sleuth, LLC, they must be closely supervised and then examined by a licensed NC attorney who is competent to practice real property law. Information gathered and used for the purpose of determining good and marketable title, whether it’s an update for a refi, a full search to convey ownership to another party, or a judgment search to uncover encumbrances, must be certified by said attorney.

The title search itself is not a certification or opinion of title. The attorney provides the title opinion after examining the information uncovered during the title search. The attorney may also identify issues or defects which need to be resolved. Title Sleuth, LLC does not provide legal advice, legal opinions, or any conclusions as to the status of title to real property.

The Role of the Title Company

The attorney will still be using a title company to insure the title. However, it is the attorney who must perform (or supervise and review) the title search and certify the real estate title before the title company issues an insurance policy.

Even though North Carolina is an attorney state, the title company still plays an important role in the closing. The attorney submits the preliminary opinion with the title work to the title company for title insurance. The title company then reviews the title work and opinion to check for major issues, determines exceptions, and (after a few more steps) issues the title insurance policy, thus protecting the buyer’s interests in the property.

Working with Title Sleuth, LLC

Title Sleuth, LLC frequently receives search requests from companies outside of NC who are unfamiliar with our laws and common practices. We operate within the strict confines of NC law, and we only perform title searches under the supervision of licensed NC real property attorneys.

If your title company works closely with or employs a NC real estate attorney, you may contact Title Sleuth, LLC to see if we’re a good fit. If you don’t have an attorney in mind, we’ll gladly recommend one!