REtipster does not provide legal advice. The information in this article can be impacted by many unique variables. Always consult with a qualified legal professional before taking action.
In most states, closing a real estate deal is straightforward—whether you do it yourself or hire a title or escrow company. However, several states, mostly on the East Coast, require an attorney to close every real estate deal, no matter the price, property type, or parties involved.
Involving an attorney isn’t a big issue for most real estate investors. After all, who knows closings better than an attorney? However, for land investors, this requirement can be a serious hurdle.
When buying cheap land—sometimes for less than $1,000—mandatory attorney fees (which often exceed $1,000) can make low-value deals impractical, especially when closing these deals isn’t usually complex.
A State-by-State Guide
After years of buying and selling land in various states, I’ve rarely encountered this roadblock, and when I did, I was fine paying extra for an attorney to avoid the hassle of self-closing. However, if you focus on snagging the cheapest properties (under $5,000), the attorney requirement in some states could be a deal-breaker.
So, I decided to dig deeper and create an interactive map showing which states require an attorney and which don’t. After many hours of online research and phone calls to various closing agents nationwide, here’s what I found…
Disclaimer: The map above reflects information gathered through extensive research. I believe it’s reasonably accurate and have included links within each state to show you at least one supporting source. However, I can’t guarantee its accuracy because state laws change frequently. I am not an attorney; this is not legal advice, so please verify this information before closing.
Do You Need an Attorney to Close? State-by-State Guide
In my research, I found conflicting information among many sources I used to create this map. As such, I'll list my findings below (in addition to the map above), along with two independent sources to support them.
- Alabama: In Alabama, licensed attorneys must prepare all legal documents for real estate transactions, including deeds and mortgages. While title companies can handle title searches and insurance, only attorneys can draft the legal documents. However, property owners may handle their real estate transactions without an attorney. [House Numbers, HomeLight]
- Alaska: Real estate transactions are typically closed through title companies or escrow agents rather than attorneys in Alaska. The state does not mandate attorney involvement in the closing process. [Virtual Underwriter, Sandy Gadow]
- Georgia: In Georgia, real estate transactions are closed by attorneys rather than title companies. State law mandates that a licensed Georgia attorney must oversee the entire closing process. [Sherman & Phalen, Bryant & O'Connor Law Firm]
- Indiana: In Indiana, title companies typically handle real estate closings, including title searches, title insurance, and the closing process. An attorney must prepare deeds, powers of attorney, and other legal documents that carry legal consequences. [Indy Legal Title Services, Virtual Underwriter]
- Illinois: In Illinois, only attorneys can provide legal advice on contract rights and obligations, and they must prepare key legal documents like deeds and mortgages. However, their involvement is not legally required for the entire closing process. [Michael H. Wasserman, P.C., Virtual Underwriter]
- Louisiana: In Louisiana, closings involve title companies and attorneys. State law requires licensed Louisiana attorneys to conduct title examinations for title insurance on immovable property. While not legally mandated, attorneys commonly assist with document preparation and fund transfers as a best practice. [Louisiana State Legislature, Virtual Underwriter]
- Michigan: In Michigan, there is no legal requirement for an attorney to be present or involved in real estate closings. Title companies and settlement agents typically handle responsibilities such as title transfer and drafting closing documents. Attorney involvement is optional. [Graham & Hubbert, Sandy Gadow]
- North Dakota: In North Dakota, real estate transactions are typically closed with title companies. While an attorney is not mandatory for the entire closing process, state law requires a licensed attorney to examine and certify the title. [North Dakota Legislative Council, Virtual Underwriter]
- Ohio: A title company or attorney can close real estate transactions in Ohio. While attorney involvement isn’t mandatory, an attorney review period is required. Ohio law mandates attorneys prepare deeds, powers of attorney, and other recorded documents. Individuals can draft documents for personal use, like a power of attorney or a deed for their trust or LLC. [Cassone Law Offices LLC, Virtual Underwriter]
- Oklahoma: In Oklahoma, attorneys are not required to conduct the entire closing process. However, an opinion of title by an attorney licensed to practice law in Oklahoma is required before issuing a title insurance commitment or policy. [Virtual Underwriter, HomeLight]
- South Dakota: Real estate transactions are typically closed through title companies rather than attorneys in South Dakota. The state does not mandate attorney involvement in the closing process. However, a licensed South Dakota abstractor must countersign title insurance policies. [Sandy Gadow, Virtual Underwriter]
- Mississippi: Real estate transactions are typically closed with an attorney in Mississippi. An attorney is required to prepare or oversee the preparation of the deed. While it is technically possible for a buyer and seller to conduct a simple cash transaction without an attorney, this scenario is the exception. [The Cardwell Firm, Virtual Underwriter]
- Wisconsin: Real estate transactions are typically closed with the assistance of title companies. Attorney involvement is optional. In the state's statutes, attorney involvement may be required to draft key legal documents in return for compensation. [Clever, Wisconsin Statutes Section 625.13]
- Wyoming: In Wyoming, attorney involvement is not mandatory for all real estate transactions but is needed to issue title opinions and prepare key documents like
deeds and mortgages to prevent unauthorized practice of law. [Virtual Underwriter, HomeLight]
As you review each state, you may notice that in states where attorneys are required to close transactions, their level of involvement varies by state.
For instance, an attorney must oversee the entire closing process in states like South Carolina and Georgia. However, states like Alabama and Illinois only require an attorney to prepare certain documents, such as deeds or financing instruments. Some states consider drafting a deed as “practicing law.” Since every real estate transfer requires a deed, these states effectively prevent transactions from closing without an attorney, making self-closing nearly impossible.
When Is It Worth The Cost?
Real estate attorneys can be essential for complex, high-stakes transactions. However, requiring every transaction to involve an attorney—even the simplest ones—can feel a little excessive.
Should you avoid “attorney-only” states? It depends on the deal's complexity and profitability.
For example, if I'm buying a vacant lot for $500 cash and plan to sell it for $2,000 cash, it doesn't make much sense to pay $1,000 for an attorney to do something very simple that I know how to handle myself.
On the other hand, if I stand to make a $50,000 profit and buy the property from a trust or business entity with a complicated ownership structure, then I would pay for an attorney to close it anyway! There's no need to avoid an entire state in these cases because of this one rule.
When profits justify the cost of an attorney, these requirements are easy to comply with. But for smaller deals, being unable to self-close could be a big enough hassle to skip certain states entirely.
Special Thanks
It took many hours to compile the information shown in the map above, and as I was doing the research this project – there were a few resources that were extremely helpful to me, so I wanted to give credit where credit is due:
- Sandy Gadow has a very detailed state-by-state guide that was extremely helpful in cross-checking the information above.
- Stewart Title's Virtual Underwriter provides a great overview of the requirements for most states.
- HomeLight also has a great list of rules for each state with external links to sources.
Lastly, it should come as no surprise that these state laws can vary and change from year to year. If you're an active real estate professional and you see any inaccuracies in the above information, please let me know! Leave a comment below, and I'll be sure to update this map continually if/when I learn of any new information that should be added, removed, or revised.
helpful points, thanks for sharing
Sure thing Joseph!
Hey! SETH WILLIAMS
I totally agree with you bro. Great post!!
These particular laws about who can and can’t be involved in the preparation and facilitation of a real estate transaction are really weird and silly.
Thanks for sharing!
BOB
You bet Bob! Glad you found it helpful.
This was very informative. I didn’t know so many states have different laws when it came to this. Thank you for this great article.
Great article – thanks for the many hours of work.
Anytime Karl. 🙂
Interesting… I’ve bought and sold land in NY a few times and never used an attorney. Am I at risk doing this? Never knew that. The county I dealt with never said anything like that to me.
Hi Dan – based on what I found, I’m guessing most attorneys would tell you that you NEED to use them, but I think the ultimate determining factor would come down to what the LAW actually says (and I didn’t dig deep enough to uncover these specific details in all 50 states).
I’ve heard from other investors who have closed deals without an attorney in other “attorney-only” states – and it sounds like some of these states treat these rules as more of an “advisory opinion”, but not necessarily as a “law breaking offense” to close without an attorney (which isn’t entirely a straightforward, black & white answer).
I think in the end, the only way to find the truth would be to ask an attorney about it, and since most attorneys have a vested interest in telling you that they are required in the process (especially in the cases where they literally are), I think you’ll most likely have a hard time finding any other answer… but as always – if you find something different than what I have shown above, I’d love to hear more about it.
This is a very interesting topic. A great way to ensure that there are no errors or omissions in your real estate contracts is to have E&O Insurance, provided at http://hmsriskmanagement.com. This will keep you, your reputation, and your money safe!
This is a nice blog. I like the idea of your mapping points of each state, I believe most of them are accurate. Thanks for sharing such informative blog.
You bet! Thanks for checking it out!
I am new to land investing and I live in Georgia (one of the state that an attorney is “required”). I have the same mindset as you when you started out. I would really like to buy some land that is nearby and I can go inspect it myself. I called a local attorney that I know and he quote me a closing cost price of $1,000 (ouch). I can afford this but I am trying to save as much as I can on my first deal.
What are some ways that I can save money on the closing cost? Are these fees usually negotiable? Or would you suggest that I begin investing somewhere besides Georgia?
Hello,
Blog is really good enough and very helpful for house. And thanks for giving me the information related to houses.
Thanks Alex – glad you found it helpful!
I think involving lawyers with any transaction such as land/property, just further protects you. Great information, thanks for sharing!
Seth,
Super helpful and informative, as always!!
Thank you!
Gulliver
Hi Seth,
Great informative post, thanks for all the time you put into researching this!
I’m having a hard time interpreting the map though. What is the difference between the medium blue and the light blue states? I am looking to write deeds in both regions, can I do this with no other party involved (title company, attorney, etc?)
Thank you,
Kristin
Thanks Kristin! I’m glad you found it helpful.
I understand your question – I can see how the colors may not be clear. Basically… the lighter the colors get (i.e. – the further west you go), the less attorneys are typically involved with closing real estate transactions. In the eastern states, attorneys tend to be involved in either ALL real estate deals, or on the bigger/commercial types of deals. In the western states, attorneys are more seldom involved – and they have both title companies and escrow companies, which (from what I’ve gathered) are slightly different, but they can serve a very similar function.
From what I gleaned in my research, you can feel free to write your own deeds in the lighter-blue states… but once you get to the darker blue states, you’ll want to be very careful, because many of those states consider it to be an “unauthorized practice of law” to write your own deeds. It’s a little ridiculous in my opinion… but I don’t write the laws.
As always – don’t be afraid to ask an attorney in the states where you’re working. I’m not an attorney and it’s better to get these answers from a legitimate source. The map above was just based on the high level research I did. Either way, I hope it helps!
Thank you for your quick and detailed response Seth!
Now I understand the difference from the light and dark blues states, but you are speaking to only two different regions when you have three detailed on your map. What I am trying to understand is whether or now I will under law be able to write my own deed in the Midwest. I understand you are not an attorney, just curious on what you found while doing your high level research.
Thanks again, I appreciate your response!
– Kristin
From what I saw in my limited research, I would feel comfortable writing my own deeds in all states EXCEPT for the ones with a darker of blue (note: there are 4 shades of blue, the 2 darker shades are the states you’ll want to be careful in).
Hi Seth-
I was directed to your information after I entered something like “can a cash buyer simply pay the seller the final proceeds of a land purchase in cash or cashiers checks at closing, rather than using an escrow agent?” And I wasn’t able to find an answer. I had negotiated a “cash” price with my buyer but am now being told that that isn’t allowed by the escrow company chose, and I am supposed to go in to sign tomorrow but they say I won’t be able to be funded until the 28th or later, at which time I will have the option of getting a wired payment or accepting a check from their bank. I don’t use banks anymore…I don’t have an account to receive a wire or deposit a check, and I gave this guy a $60,000 dollar reduction in price simply for his ‘quick closing with cash payment’ offer. Now I’m being told too bad, I will be breaking the contract & have to cover all the costs if I try to pull out, (which I have been told I can’t do anyway, & will only result in added costs to me and delay my payout,) as I have already signed the purchase & sale agreement.
I live in Snohomish, & my 9.33 acres that I’m selling is in Lake Stevens, which is in Snohomish County, WA.
Do you know whether it’s allowable? I can’t see why it wouldn’t be– maybe inconvenient, but still… I’m very upset. My husband just died & this guy knows I need money or I’m going to start losing even more, like my home which I own free & clear, through tax foreclosure, & now when it’s time to sign, THIS. I have no time. Can you help me at all? Thank you for your time,
Margaret Olson
Hi Margaret – I’m sorry to hear about your troubles… though I’m not sure I fully understand your question. What exactly is the problem you’re looking to resolve? Are you just trying to close on your own (without an escrow company getting involved), or is there some other issue you’re trying to address?
From what little I know about Washington, I think it’s possible to close your deal in-house… but if the transaction is of a significant amount (and it sounds like it is), I would honestly think it’s worth your while to have a professional handle the closing. They’ll take a great deal of work out of your hands (though it probably will chew up more time in the process), and the cost usually isn’t unreasonable if the amount of the transaction is sizable.
Hi Seth,
Thank you for the credit. If you need any further information, I up-date my State by State Closing guide regularly, and also I include a detailed description of how closings are handled in each state (and county) in my newly revised book, The Complete Guide To Your Real Estate Closing. Please visit me at my blog and website http://www.sandygadow.com for further updates. Thanks again!
That’s awesome Sandy! Thanks again for the great resources you provide, your site was/is VERY helpful to me!
Great guide Seth! I’m sure many people have found this useful.
Hi Seth,
In your home state of Michigan, it says that the sale can be closed by the title company, real estate agent, lender or attorney. Does this mean that in order to do a self-close on a cash sale that you would need to be a licensed real estate agent? Or is “lender” synonymous with seller in these circumstances?
Hi Justin, you can do self-closings in Michigan, as long as it’s a deal you’re a party to (you’re not doing it on behalf of someone else, with no ownership interest in the property). The map is essentially saying that you don’t need to be an attorney. Sorry if that wasn’t overtly clear.
It’s interesting that you talked about attorney involvement changes depending on what state you live in. I have been wanting to start buying property. I can see how it would be smart to have a settlement agent’s help because my state has strict settlement laws.
Yeah, getting a closing agent involved usually slows down the process, but it also can help out a lot in terms of taking the workload and attention-to-detail off your shoulders.
I’ve been wanting to get a real estate attorney, and I think that being able to get some information would be nice. I like that you talked about how you want to be able to get a property that could help you make money, which I like. I’m going to have to look for a good real estate attorney and see what my options are!
Good luck Jordan!
Hi Seth,
Huge fan of your site and blog posts!
As you mentioned above, I too felt really frustrated with how much it cost to hire a third party to complete a deal for me. In Southern California, for a vacant land property that’s $3,000, escrow fees alone are often $500+ (escrow companies have really high overhead costs).
As a result, I cofounded a company that developed a new escrow solution (our most recent property buyer eliminated over 95% of his escrow costs and ended up paying only $19 in escrow fees for a $3,200 land property). I think you’ll see that a lot of previously unprofitable parcels are now becoming attractive investments.
It would be awesome if you took a look at our product and shared your thoughts on it. Would really love your feedback!
I’m buying a real estate property for my first home. I’m glad to know that real estate deals are fairly easy to close, but I’ll still hire an attorney to help me out. I think the process is fairly large and complex, I’m sure that I can’t do this by myself, so hiring help would be the practical thing to do.
the date the article was written
Original publish date was June 2016
Hello,
Kindly let me know if your firm can provide trust/escrow service for the purchase of Crane types of equipment in your city. The purchase agreement requires funds to be held in trust/escrow. I want to know if you can provide trust/escrow service and be the closing agent for this purchase. Let me know if this is your area of practice and I’ll send you the purchase agreement and the escrow instructions for your review. If not please provide a referral..
T Murray.
Hi Tom – that’s not what we do. I would do a google search for “escow office” or “escrow service” in your area to see what you can find. Good luck!