Legal Question in Real Estate Law in Illinois

The mortgage company should not be receiving money. They are lending money.

The attorney is likely running all closing funds through his trust account. He will receive funds from the buyer's lender, from the buyer, and any other incoming funds. Then he will pay out all closing expenses such as transfer taxes, payoff of existing mortgage, if any, recording fees, attorney's fees, etc.

My question is where is the title company in all this. While it is not unusual in certain circumstances for an attorney to close a transaction, usually the disbursements are handled through the title insurer with the parties' attorneys each coordinating on the figures to be used.

For a buyer to close with title insurance or an attorney is a huge mistake. Unfortunately, if there is already a contract that does not include a requirement for the seller to provide you title insurance, then it is an expense you should pick up yourself. It is critical. Find a reputable closing attorney to get involved.

I agree w/ Mr. Repay. Most likely the attorney is writing the title insurance and is the title insurance company's agent, meaning also the closing agent. If the attorney is NOT the closing agent, then I would get your own attorney involved, which you should anyway -- you are at risk for anything being wrong and the seller's attorney will owe you NO duty of care as attorney, and will be very much protected as closing agent.