Who Handles a NJ Closing? Attorneys, Title Companies and Settlement Agents

The short answer: A New Jersey home closing can be handled with attorneys for one or both sides, or with no attorneys at all, with a title company running the settlement. The NJ Supreme Court allowed attorney-free closings statewide in 1995 in In re Opinion No. 26. It added one condition: the broker must give the buyer and seller a written notice explaining who represents whom and the risks of going without a lawyer (In re Opinion No. 26, 139 N.J. 323 (1995)). The Court also said it "strongly believes" both parties should hire counsel.

This article explains how NJ closings are organized. It is not legal advice. Questions about a specific deal belong with a New Jersey attorney.

Who is involved in a NJ closing?

Our NJ real estate industry map explains each of these businesses in more detail.

What did In re Opinion No. 26 decide?

In 1992, the Supreme Court's Committee on the Unauthorized Practice of Law concluded that brokers and title officers handling closings where neither side had a lawyer were practicing law without authority. The Court put that opinion on hold and sent the matter to a special master, who held sixteen days of hearings. On March 13, 1995, the Court ruled that closings without attorneys are not the unauthorized practice of law, as long as the broker meets the notice conditions. The Court wrote that its decision "applies not only to South Jersey, but to the entire state" (Opinion No. 26).

The decision also set some working limits:

• Brokers may order title searches, abstracts, title binders and title policies.
• An attorney retained by the broker may draft the seller's deed and affidavit of title, but only after personally consulting the seller.
• The title company may clear minor title objections, such as standard exceptions like marital status and money liens customarily paid off at closing. It may not handle easements, covenants or other serious legal objections to title.
• Brokers have a duty to tell a buyer or seller when a situation calls for independent counsel.

What notice must the broker give?

The Court adopted a written notice (Appendix A to the opinion). It must be attached as the cover page of the proposed contract, and the broker must tell each party to read it before signing. The notice says, in plain words, that:

• the broker represents the seller (the wording is revised if the broker represents the buyer or is a dual agent), and the title company represents neither side;
• the broker and title company are paid only if the deal closes;
• neither the broker nor the title company may give legal advice;
• the contract becomes final unless a lawyer cancels it within three days; and
• whether to hire a lawyer is the party's own decision.

At the start of the closing, the title officer asks both parties whether, how and when they got the notice, and keeps a record. If the broker skipped it, the broker is engaged in the unauthorized practice of law. So is anyone else who takes part knowing the notice wasn't given, and an attorney who knowingly takes part faces discipline (Opinion No. 26). The three-day window is the same one explained in NJ attorney review.

How do North and South Jersey practices differ?

The 1995 record showed a sharp regional split. About 60% of South Jersey buyers and 65% of sellers had no attorney. In North Jersey, only 0.5% of buyers and 14% of sellers went without one (Opinion No. 26). The Court described the South Jersey closing as usually taking place at the title company's offices.

Those numbers are three decades old. We couldn't find a current official count, so treat the North/South split as a general tendency, not a rule. Any buyer or seller anywhere in the state can hire an attorney, and any of them can choose not to.

What does the title company do either way?

Whether or not lawyers are involved, the title company searches the record and issues a commitment to insure. Under N.J.S.A. 17:46B-9, the insurer must mail the proposed insured a notice of the policy's conditions, exceptions and limitations, and of the right to review them with their own attorney, at least five days before closing. That mailing isn't required when the applicant is a NJ attorney representing the insured. Our title insurance guide covers the commitment and the two policies.

The person running the settlement is often called the settlement agent. Federal rules let a settlement agent deliver the buyer's Closing Disclosure on the lender's behalf. The settlement agent must also give the seller its own disclosure no later than the day of closing (12 CFR 1026.19(f)(1)(v), (f)(4)).

Can the lender choose your attorney?

No. A lender may not require a borrower to use the lender's attorney. A written loan offer must state, in bold type, that the lender's attorney represents only the lender and that the borrower is advised to hire a New Jersey attorney of their own choosing. On a one-to-four-family home loan for personal use, the borrower generally can't be charged the lender's attorney fees. The exceptions are a fee for reviewing documents prepared by the borrower's attorney and work the borrower asks for (N.J.S.A. 46:10A-6).

What should new agents take from this?

• Stay out of legal advice. The notice itself tells the parties that brokers can't give it, and NJ rules say licensees should recommend legal counsel whenever a party's interests seem to require it (N.J.A.C. 11:5-6.4(i)).
• Never suggest a lawyer is unnecessary. The Court's notice warns that the rules bar brokers and title companies from saying parties are better off without one.
• Know where your role stops. See where NJ agents must stop on legal work and the contract-to-closing checklist.

How a NJ deal moves from contract to closing is part of pre-licensing study. Business Elementary's 75-hour course is one place to learn it.

Sources

• In re Opinion No. 26 of the Committee on the Unauthorized Practice of Law, 139 N.J. 323 (1995), via Justia: https://law.justia.com/cases/new-jersey/supreme-court/1995/a-73-94-opn.html
• N.J.S.A. 17:46B-9 (title commitment notice) via Justia: https://law.justia.com/codes/new-jersey/title-17/section-17-46b-9/
• N.J.S.A. 46:10A-6 (borrower's choice of attorney) via Justia: https://law.justia.com/codes/new-jersey/title-46/section-46-10a-6/
• 12 CFR 1026.19 (Closing Disclosure and settlement agents), eCFR: https://www.ecfr.gov/current/title-12/chapter-X/part-1026/subpart-C/section-1026.19
• N.J.A.C. 11:5-6.2 and 11:5-6.4 via Cornell LII: https://www.law.cornell.edu/regulations/new-jersey/N-J-A-C-11-5-6-2 and https://www.law.cornell.edu/regulations/new-jersey/N-J-A-C-11-5-6-4

Last reviewed: November 10, 2026