Why Do I Need a Title Company Instead of Just an Attorney, Agent, or Closing Agent? (Updated)

How to Know Which Avenue Is Right for You in a Virginia Closing

Quick Answer: In Virginia, you're never locked into just one option for your closing. Title and settlement companies, like Lilly Title & Settlement, can handle your title search, title insurance, and closing services all under one roof, while attorneys, real estate agents, and standalone closing agents each play a narrower, specific role. Here's exactly what each one does, so you can build the right closing team for your transaction.

It's often confusing deciding who to use in a real estate closing. Do you choose an attorney? A title and settlement company? Or work with a separate closing agent? There are no wrong answers here — it comes down to choice. In Virginia, there's no requirement to use an attorney. In fact, attorneys typically use title companies to do the title work for them, then head up the closing themselves.

What Real Estate Attorneys Do

• Provide legal advice, if requested
• Review contracts or other legal documents
• Assist with legal disputes or complex situations
• Represent your interests directly if there is a conflict

 
You might choose an attorney for more complex transactions like commercial properties, For Sale By Owner (FSBO) deals, or unique situations that call for an attorney's deep legal knowledge. Typically, real estate attorneys are not required for standard Virginia closings.

What Does a Closing Agent Do?

 A closing agent's work is narrowed to just the financial side of the transaction.

• Collects and disburses closing funds and prepares the settlement statement
• Coordinates commission and fee payments to the seller and other parties
• Usually employed by a real estate firm or a standalone settlement office
• Does not perform title searches, resolve title defects, or issue title insurance

When the closing agent and the title company are two separate businesses, the two roles work alongside each other — which means more parties on the closing document and more back-and-forth to coordinate.

What Does a  Title and Settlement Company Do?

• Acts as a neutral third party
• Researches property records to find any “clouds” on the title, such as unpaid mortgages, liens, or errors in the public record
  
• Offers title insurance to protect you from future financial loss due to unforeseen circumstances such as missing heirs, fraud, or forgeries
• Protects you from unpaid liens for contractor bills, legal judgments, or taxes discovered after the closing
• Holds escrow funds and documents securely until all conditions of the sale are met
• Prepares and records final legal documents for a smooth transfer of ownership
• Provides settlement closing services — and often serves as your closing agent too, combining both roles under one roof

Is the Title Company Also the Closing Agent?

Often, yes. Some title companies, like Lilly Title & Settlement, expand their role to provide real estate closings alongside title insurance policies for buyers.

Besides offering title insurance, we review real estate contracts for accuracy and consistency, flagging any errors we find, and we handle the financial documents tied to the sale — commission and payment to the seller, taxes, and other fees.

Functionally, the title agent and a separate closing agent perform many of the same closing-day tasks. The real question is whether you want everything under one roof, which tends to make the transaction smoother and easier, or prefer to work with two separate businesses

Who Else Is Involved in a Virginia Closing?

Besides an attorney, closing agent, and/or title company, several other parties typically play a role in getting you to the closing table:

• Real estate agents, representing the buyer and/or seller
• An appraiser
• A surveyor, if required
• The lender
• A home inspection company and, often, a pest inspection company
• An insurance agent, to insure the property

A full-service title and settlement company sits at the center of the entire transaction, helping streamline communication among all of these parties so the process runs more smoothly

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FAQs

Why are  title companies central to Virginia  title companies?

Most residential real estate transactions in Virginia rely on a licensed title and settlement company to handle the closing process.

Title companies are uniquely positioned to combine risk assessment, insurance protection, and fund management into a single streamlined process, helping ensure a smooth and secure closing for all parties.

Why do Virginia lenders require title companies?

Lenders in Virginia require a title company to verify ownership, confirm lien priority, and issue lender's title insurance. This protects the lender from undiscovered title defects that could affect their security interest in the property.

Lenders require buyers to purchase lender's title insurance; homeowner's title insurance is optional but strongly recommended.

Is a title company the same as a closing agent?

Not always — but it can be. A closing agent, on its own, only handles the financial side of a transaction and doesn't perform title work. Many title companies, including Lilly Title & Settlement, also act as the closing agent, so title search, title insurance, and settlement services all happen through one company.

How is the closing fee paid?

Funds are escrowed to cover the closing fee, which is determined by the sale price of the property.

Why do I need a title company instead of just an attorney or real estate agent in Virginia?

In Virginia, title companies play a central role in real estate closings by conducting the title search, issuing title insurance, coordinating settlement, and securely handling funds. Attorneys and real estate agents provide important services, but they don't typically perform the full title and settlement process required by lenders and buyers.

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The Right Closing Team

If you're weighing title company vs. attorney vs. agent vs. closing agent, the simplest path is often a full-service company that can answer every question in one place.

Ready to close on your new home? Turn to Lilly Title & Settlement, a woman-owned, full-service title and settlement company in Staunton, VA, obsessed with legal details and committed to closing your property securely and on time.