Why does the settlement agent (title co.) represent the lender and not the buyers or the sellers?

In closings, settlement agents (title co.) work for, and represent, the lender; not the buyers or the sellers.  The title co. is specifically hired by the lender to a) finalize the transaction, b) record the lender’s mortgage in 1st position at the clerk’s office, and c) issue the lender a title insurance policy.

Therefore, if, and whenever, an attorney happens to be the closer administering any closing, he/she is prohibited by law from providing any legal advice to buyers/sellers at the closing table.  The closing attorney must advise the buyers/sellers that he/she cannot provide them advice – that the buyers/sellers will have to seek their own independent legal counsel.  The Kentucky Supreme Court ruled 11-0 that there is no advantage to having an attorney at the closing table versus a non-attorney.  What matters most in your choice of settlement agents is competence, character and service.  Jett Title!

Kentucky attorneys tried to corner the real estate closing market to keep fees to themselves, limit competition and to raise their fees (as done in Georgia and other states).  In 1993 the KY Bar Association was humiliated in a unanimous defeat, 11-0 ruling, by the Kentucky Supreme Court.