Dec32025
Real Estate Q&A Series

Can you handle the closing and coordinate with the title company, escrow, and the buyer’s lender? – North Carolina

Short Answer

In North Carolina, a licensed real estate attorney can handle a seller’s closing and serve as the settlement agent, which includes coordinating with the title company, any escrow holder, and the buyer’s lender. State law expects an attorney to supervise residential real estate closings and to manage the preparation of deeds, title work, trust/escrow funds, recording, and disbursement of proceeds. The exact coordination steps can vary based on the property, loan type, and any liens or co-owners involved.

Understanding the Problem

The question is whether, under North Carolina real estate law, a real estate attorney can take primary responsibility for a seller’s closing and actively coordinate with the title company, escrow, and the buyer’s lender. In practical terms, this asks if one North Carolina attorney can act as the settlement agent who manages documents, funds, and communication among all parties for a real property sale. It also raises when that attorney gets involved in the process, and what parts of the closing legally must stay under attorney supervision rather than being delegated to non-lawyer vendors.

Apply the Law

North Carolina treats residential real estate closings as the practice of law, which means a licensed North Carolina attorney must supervise key parts of the transaction. The settlement agent’s duties include handling closing funds through a trust or escrow account, ensuring proper recordation of deeds and deeds of trust, and following “good funds” rules before disbursing money. Lenders, buyers, and sellers have their own obligations to deliver funds and information to the settlement agent in forms allowed by statute.

Key Requirements

  • Attorney-supervised closing: A North Carolina attorney must supervise residential real estate closings and perform the legal work, including deed preparation, title review, and advising the client.
  • Settlement agent control of funds and recording: The settlement agent (often the closing attorney) must receive closing funds into a proper trust or escrow account, confirm they are in acceptable “good funds” form, record the deed and deed of trust, and only then disburse proceeds.
  • Coordination with lender, title, and escrow: The settlement agent must work with the lender for loan instructions and funding, with the title company for commitments and title insurance, and with any escrow parties to reflect all required payoffs and disbursements on the closing statement.

What the Statutes Say

Analysis

Apply the Rule to the Facts: Where a property owner in North Carolina wants to sell real estate and has not yet provided details on the property, liens, or timing, a North Carolina real estate attorney can still agree in principle to act as the settlement agent. That attorney can coordinate with the buyer’s lender to obtain loan instructions and closing disclosures, with the title company for the title commitment and final policy, and with any escrow holder for taxes, HOA dues, or repairs. Once the specific facts are known, the attorney will tailor the closing documents, trust account deposits, and disbursement plan to the transaction.

Process & Timing

  1. Who files: The settlement agent, typically a North Carolina real estate attorney. Where: In the county where the property is located, through the office of the register of deeds. What: Deed from seller to buyer, deed of trust or mortgage (if there is a loan), and related affidavits and tax forms required by the county and state. When: On or immediately after the agreed closing date, after all parties have signed and acceptable funds have been received into the attorney’s trust or escrow account.
  2. The settlement agent obtains final lender instructions and closing disclosures, reconciles them with the title commitment and agreed contract terms, and prepares a final settlement statement. This includes coordinating wire instructions and checks with the buyer’s lender, the seller’s lienholders, HOA, and any other payees. Timing can vary by lender and county recording practices but often occurs within the same business day of signing when “good funds” are confirmed.
  3. The settlement agent records the deed and deed of trust with the register of deeds and, after confirming recording and compliance with the Good Funds Settlement Act, disburses sale proceeds and pays all authorized charges from the trust or escrow account. The seller receives final copies of the recorded documents and closing statement as the expected closing package.

Exceptions & Pitfalls

  • Complex ownership (such as multiple co-owners, estates, or trusts) may require additional legal work and documentation before closing can proceed smoothly.
  • Unreleased liens, judgments, or unpaid taxes can delay recording or disbursement if they are not identified and arranged for payoff in advance.
  • Late delivery of lender documents or last-minute changes in loan terms can push back signing or funding and affect the closing date.
  • Failure to follow the Good Funds Settlement Act—such as attempting to disburse on uncollected funds or before recording—can create legal and ethical problems for the settlement agent and disrupt the transaction.
  • Miscommunications among the title company, lender, and escrow holders can lead to errors in the closing statement, so centralized coordination through the settlement agent is important.

Conclusion

Under North Carolina law, a licensed real estate attorney can handle a seller’s closing by serving as the settlement agent, which includes coordinating directly with the title company, escrow, and the buyer’s lender. The attorney must supervise the legal aspects of the closing, manage trust or escrow funds under the Good Funds Settlement Act, record the deed (and any deed of trust), and only then disburse proceeds. The next step is to engage a North Carolina real estate attorney early so the closing team and timeline can be organized around the specific property and loan details.

Talk to a Real Estate Attorney

If a real estate sale in North Carolina is coming up and coordinated help is needed with the title company, escrow, and the buyer’s lender, our firm has experienced attorneys who can help explain the process and manage the closing from start to finish. Call us today at 919-341-7055.

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.

Category: Real Estate Q&A Series

Author: jpierce

Attorney Jared Pierce is the founder of Pierce Law Group in Raleigh, North Carolina, a firm he established with a dedicated focus on probate administration and estate planning across North Carolina. Born and raised in the Republic of South Africa, Jared moved to Durham with his family in 2001, bringing with him a rich cultural background and a distinctive accent that often serves as a conversation starter.