Real estate law firms sometimes outsource their closing work to title companies for the same reason any business outsources. It’s easier, it saves time, and it gets the job done. For smaller firms this is sometimes a necessity. If real estate closings are rare, then staff really may not have the technical know-how needed to facilitate a closing, and outsourcing is seen as the only option. Larger firms that outsource don’t have that same excuse. If real estate closings are a routine part of your business, you owe it to your clients to perform that work yourself.
The Downside Of Outsourcing
For as much time as it saves, outsourcing real estate closings usually comes with more cons than pros. For starters, real estate law firms are giving away money that they could be earning for themselves by doing the closings in-house, and they are opening themselves up to compliance violations for which they could be held liable.
Compromising Client Trust: Buying a house is the biggest financial commitment many people will make in their lives. They want to entrust the paperwork associated with this major purchase to someone they trust: their attorney. Their attorney is where people go for the most intensely personal events in their life. They trust their attorney and they want to know their attorney has responsibility for their file from end to end. Outsourcing their closing to an unfamiliar title company could shake their trust in the attorney or firm.
Outsourcing Is Expensive: In most cases, outsourcing does not make financial sense. Real estate attorneys who outsource their closings are missing out on lucrative fees that come with handling closings. Not only that, they have to pay the title company to do the work! Firms end up losing money on both the front and the back end, and small firms and solo practitioners can hardly afford this type of loss.
Compliance Issues: Once the paperwork leaves your hands it is out of your control. You are placing your faith in the title company to do the job right and in compliance with all current laws. Non-compliant closings not only negate the sale, the fines for non-compliance can be astronomical and affect firms for years afterward.
Easy CDF Saves Time, Save Money, Ensures Compliance
The solution to the outsourcing dilemma is Easy CDF. Easy CDF works for all real estate firms, no matter how many closings are handled each year. It is a practical solution to managing closings in house, saving time and money, and allowing clients to stay with their attorney through the entire process.
The real estate closing software is 100% compliant with all of the most current federal real estate closing documentation requirements, including the new TRID requirements going into effect August 1, 2015, and it guides attorneys through the process step-by-step, ensuring no form is forgotten and no data is missed. Auto calculations and built-in compliance features make it practically impossible to make a mistake.
Easy CDF will improve your closing efficiency, ensure compliance, and help you keep the money you would normally pay to a title company within your firm. Easy Soft has a 30-year history of enabling efficiency for attorneys and now we are offering Easy CDF as yet another quality solution that allows solos and small law firms to quickly and easily complete complex work for their clients.
Contact Easy Soft at 1-800-905-7638 to learn more about Easy CDF and how it can change the way you handle real estate closings.