# Some of the Largest Middle Tennessee Real Estate Brokerages are getting paid to push you toward a title company that doesn't legally represent you **By Jim Vanderpool** *Published: June 15, 2025* **Let me cut to the chase:** That title company's attorney at your closing table? They're not YOUR attorney. After 25 years of closings in Tennessee, I've seen doctors, teachers, and CEOs walk out of closings thinking they had legal protection when they had nothing more than a false sense of security that came back to bite them when it hit the fan. Time to pull back the curtain. ## The Big Lie at the Closing Table **Here's how it happens:** - You walk into closing (biggest purchase of your life) - See an attorney at the head of the table - Think: "Great, there's a lawyer here" - Feel protected and let your guard down - **Reality check:** You're not protected at all **The truth nobody tells you:** That attorney works for the title company, not you. They're about as much your lawyer as the bank teller is your financial advisor. ## Who's Really Sitting at Your Table? ### 1. Traditional Title Company (The Paper Pushers) **What they do:** - Process documents - Check the title - Collect signatures - Make sure money changes hands **Who they protect:** The transaction itself (not you, not the seller—the deal) **Think of it this way:** They're like a referee in a football game. Sure, they know all the rules, they'll blow the whistle if someone's offside, but when the opposing team comes charging at you? They're not going to throw a block. That's not their job. ### 2. Attorney-Owned Title Company This is where most folks get fooled. You see: - "Smith & Jones" on the door (sounds like a law firm) - "Attorney-owned and operated" - "All closings handled by licensed attorneys" - Maybe even some law books on the shelf **You breathe a sigh of relief. Big mistake.** **Here's what they DON'T tell you:** - **No attorney-client privilege:** That friendly chat you're having? Not protected. They could testify about every word. - **Can't give legal advice:** See that problem in your contract? They can't point it out. - **Must stay neutral:** Even if they spot something that could save you $10,000, their lips are sealed. - **The smoking gun:** They're regulated by the Department of Commerce & Insurance, NOT the State Bar **Real-world example:** I see it all the time—buyers sitting at closing, asking the title company attorney, "Should I sign this?" or "Does this look right to you?" The attorney's response? "I can't advise you on that." Right when you need guidance the most, they're legally required to stay silent. It's like having a doctor in the room who can't tell you if you're sick. ### 3. An Actual Law Firm (Your Legal Bodyguard) **Here's the game-changer:** When you hire a law firm, you become the CLIENT. **What that means in plain English:** - Every conversation is confidential (attorney-client privilege) - We actively look for problems and TELL you about them - If something smells fishy, we raise hell - We negotiate on YOUR behalf - We can actually give you legal advice (novel concept, right?) **The proof:** We're regulated by BOTH: - Department of Commerce & Insurance (for title insurance) - Tennessee State Bar (for legal representation) That second layer of regulation? That's your protection. That's what makes us YOUR advocate, not just a neutral processor. ## The Shell Game Nobody Talks About **Want to know why your realtor pushes certain title companies?** **Follow the money:** - Many brokerages have "joint ventures" with title companies (where the brokerage gets a cut of every closing they send over—ka-ching!) - Some title companies pay $15,000/month "rent" for a desk nobody uses - "Preferred provider" often means "financial relationship" - Marketing agreements that would make your head spin **True story:** I know of title companies in Nashville paying more in "office rent" to a real estate brokerage than I pay for my entire law office. Or the title companies who pay "marketing fees" for realtor teams. The question isn't whether this should be illegal—the real question is: does this protect YOU? And clearly the answer is NO! It's about the money. **My advice:** - Take control of your closing - Choose your own representation - Don't let anyone tell you "we always use XYZ" - Even if a title company is in your contract, you can change it with a simple addendum ## The Security Guard vs. Bodyguard Analogy **Here's my favorite way to explain this:** Imagine you're walking into a sketchy situation with $300,000 in cash (because that's essentially what you're doing at closing). **Option A: The Security Guard (Title Company)** - Watches the room - Makes sure nobody breaks the rules - Treats everyone the same - If someone makes a move on YOUR money? They'll write a report **Option B: The Bodyguard (Law Firm)** - Watches YOUR back specifically - Anticipates threats to YOU - Steps between you and danger - If someone makes a move on YOUR money? They step in **The kicker? They cost the same.** That's right. Thanks to state-regulated title insurance rates and competitive closing fees, you'll pay roughly the same amount either way. ## What This Really Costs You **When you use a title company instead of a law firm:** - **You lose:** Legal advice, advocacy, confidentiality, protection - **You pay:** The exact same amount - **You risk:** Everything **When you use my law firm:** - **You get:** A legal advocate, confidential advice, someone fighting for YOU - **You pay:** The exact same amount - **You risk:** Nothing It's literally the easiest decision in real estate, yet 80% of people get it wrong. ## Red Flags to Watch For **Run (don't walk) if you hear:** - "Our attorney will be at closing" (Whose attorney?) - "We're attorney-owned" (So what?) - "Don't worry, we'll take care of everything" (For whom?) - "Your realtor always sends clients here" (Wonder why?) **Green flags to look for:** - "You'll be our client" - "Everything we discuss is privileged" - "We represent YOUR interests" - "Our law firm is regulated by the State Bar" ## My Promise to You Look, I've been doing this for 25 years. I've seen every trick, every "gotcha," every way a real estate deal can go sideways. When you hire my firm: - You're not just another closing - You're my client - Your interests come first - I disclose every obligation to every party—every closing, every time for 25 years - If you don't feel comfortable with an obligation I may have to another party in the transaction (rare, but it happens), I'll help you find someone else. When your guiding principle is 'What serves my client best' rather than what maximizes my own profit, my responsibilities and direction become remarkably clear. ## Bottom Line Don't let the presence of an attorney at a title company fool you. The illusion of representation has cost too many good people too much money. **Remember this:** An attorney AT a title company is not YOUR attorney. It's like thinking the referee is on your team just because they're wearing stripes. --- **Ready for real protection? Not just the illusion of it?** Contact Vanderpool Law: (615) 771-9800 *Actual lawyers. Actual representation. Actually on your side.* *Because in real estate, illusions are expensive.*