Shadowing in a Real Estate Closing

About the author : Dave Dinkel


  • Shadowing is the process whereby an attorney looks at his client’s closing documents.
  • This attorney is not the same attorney doing the actual closing, rather it’s one of the “opposing parties,” the seller or the end buyer.
  • The most important documents are the deed, title policy, and closing statements.
  • Closing agents/attorneys make a commission from the issuance of the title policy, and it can be 70% to 80+% of the actual title policy cost on the closing statement.
  • This is usually more than the “Settlement Fees” the closing agent charges.
  • This source of revenue is why closing agents sometimes fight for their clients to close at their firm.
  • Shadowing comes in when the seller or the end buyer stipulates that you must use his closing agent/attorney to close his part of the transaction.
  • Often a Realtor® will have a favorite agent that he/she wants to use, and he/she tries to make it a stipulation of the sales contract that you use that agent.
  • This can be a deal killer if you are trying to sell your contract or assign it.
  • Not having control of the closing agent/attorney is your weak link in the potential failure of your upcoming closing.
  • To regain control of the situation, you’ll need to choose the closing agent on the original contract you present to the seller or end buyer.
  • That may meet with resistance from either party to the closing so you will next try another strategy of “Paying for the Title Work” which allows you to pick the closing agent.
  • You may still meet resistance, and your next move is to explain to the seller or end buyer that their “chosen” closing agent/attorney can “Shadow the Transaction” if they are concerned that the title work is correct.
  • The main reason to control the closing agent/ attorney is to make sure he doesn’t disclose the sale or purchase price to both seller and buyer in the transactions.
  • Be firm about this issue and always blame someone else such as, “My funding partner won’t close with any other agent.”


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Keywords – Shadowing in a Real Estate Closing, Shadowing in Wholesaling, Legal Help with a Closing

About the author : Dave Dinkel