Massachusetts has taken the leadership role among the New England states in defining real estate closings as a practice of law...through an executive order and case law which is currently being enforced in the court. As I understand it notaries/paralegals must be supervised by an attorney if they are to perform closings in Massachusetts.  Connecticut and Vermont seem to be taking the same position. During the past six months there has been a sharp increase in requests for my firm to perform attorney closings rather than notary witness closings. The past two weeks have been phenomenal. I received a call this week from someone that was hiring nothing but attorneys for closings on the East Coast, and planned to do the same for the remaining states subsequently.

I do think that the borrowers need to be protected and that they are in need of being informed as to the wisdom of the transaction into which they are entering. I consistently see borrowers seeking to escape a sharp interest rate hike on an adjustable rate mortgage by refinancing with another adjustable rate mortgage. Very often they are not considering that the closing costs, possibly $5,000.00 to $8,000.00 are reducing their equity every 2 to 4 years.

I do not think that legal representation should be imposed upon them by the state, but they seem to be sorely in need of  representation. I applaud the states which have determined that real estate closings are a practice of law best left to attorneys, and do think that these states are pursuing the best course of action. However, I also understand the preference of the borrowers (foolish as it may be) to make an informed decision to reject legal representation and to represent themselves.

Anne raises a good point about the future of Vermont's abstractors. In Massachusetts the case law upon which the Commonwealth relies for the definition of closings as a practice of law also seems to suggest that abstracting is a practice of law. It is foreseeable that Massachusetts may move on to the abstractors next.

This seems to be a growing trend in other states outside of New England as well with respect to real estate closings (i.e. Georgia, South Carolina, Delaware and West Virginia). If Vermont elects to follow the lead of Massachusetts the abstractors and notary signing agents could very well find themselves without a market for their services.

to post a reply: login - or - register