For those of us who have been asked to review that Florida condo purchase on behalf of a relative or close friend, familiarity with “escrow closings” and other out of state settlement procedures is easily recognized. A review of the HUD-1 (or other closing statement) details the debits and credits between the parties (tax adjustments, HOA dues, etc.), the closing costs to be paid by the parties and the funds necessary to close. Depending on lender financing or a cash purchase, upon the completion of all closing formalities, title is transferred to the purchaser and funds disbursed to the seller. Sounds familiar? It should as this is the same outcome from a traditional “brick and mortar” closing where all parties are present throughout the closing.
Fast forward to our COVID pandemic environment. The traditional “brick and mortar” closing has undergone a significant transformation as state mandated guidelines and personal apprehension limit the number of attendees present within the four walls of a closing room. Changes to facilitate the traditional closing are being legislated and implemented. What impact this will have on the traditional closing attorney’s role and the value of services rendered has yet to be measured, but one thing is for sure, escrow closings are here to stay. The traditional closing attorney needs to embrace the “escrow closing” concept and drive the narrative while adapting his/her role. As much as our profession has tried to avoid this scenario by maintaining a critical role in the closing process, the handwriting is on the “closing wall,” if not already there (and in BOLD print).
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