General educational content. State closing requirements can change. Verify with a licensed attorney in your state. Data verified June 2026.

Last verified June 2026

Attorney States vs Escrow States: Who Closes Real Estate Transactions in Your State (2026)

Twelve states require or strongly customarily use an attorney at real estate closings; 33 allow title or escrow companies to close independently; 5 are hybrid. Here is the full 2026 reference table with escrow interest requirements.

12

Attorney-required states

33

Title/escrow-company states

5

Hybrid/varies states

The Three Categories

Attorney States

In these states, a licensed attorney must be involved in the real estate closing process. This may mean the attorney must be physically present at closing, must prepare and review closing documents, or must certify title. Each state's requirement is slightly different. Both buyer and seller typically have their own attorney.

Connecticut, Delaware, Georgia, Maine, Massachusetts, New Hampshire, New York, North Carolina, Rhode Island, South Carolina, Vermont, West Virginia, Washington D.C.

Title/Escrow-Company States

The majority of US states allow a licensed title company or escrow company to handle the closing without attorney involvement. The title company is neutral - it does not represent either party. If you want legal advice on your purchase contract or closing documents in these states, you need to hire your own attorney separately.

Alabama, Alaska, Arizona, California, Colorado, Florida, Iowa, Maryland, Minnesota, Oregon, Texas, Utah, Virginia, Washington, Wisconsin (plus others not listed)

Hybrid States

These states do not legally require an attorney, but attorney involvement is customary in many markets. Illinois has the clearest geographic split: attorney involvement is expected in Chicago, uncommon downstate. New Jersey has a customary 3-day attorney review period after contract signing. Ohio and Pennsylvania are handled by title companies in most markets with attorneys available if requested.

Illinois, Michigan, New Jersey, Ohio, Pennsylvania

State Reference Table

StateCategoryClosing AgentAttorney?Escrow Interest?Notes
AlabamatitleTitle companyNoNo
AlaskatitleEscrow/title companyNoYesEscrow interest required
ArizonatitleEscrow companyNoNoIndependent escrow companies common
CaliforniatitleEscrow or title companyNoYesEscrow interest at least 2% (Civ. Code 2954.8)
ColoradotitleTitle companyNoNo
ConnecticutattorneyAttorneyYesYesAttorney must review title. Escrow interest required.
DelawareattorneyAttorneyYesNoAttorney required
FloridatitleTitle companyNoNoBuyer traditionally selects title company
GeorgiaattorneyAttorneyYesNoAttorney required; must be licensed GA attorney
IllinoishybridAttorney (Chicago) / Title (downstate)NoNoChicago has 5-day attorney review period by custom
IowatitleTitle companyNoYesEscrow interest required
MaineattorneyAttorneyYesYesEscrow interest required
MarylandtitleTitle company or attorneyNoYesEscrow interest required
MassachusettsattorneyAttorneyYesYesAttorney must certify title. Escrow interest required.
MichiganhybridTitle company (attorney common)NoNoAttorney involvement common but not required
MinnesotatitleTitle companyNoYesEscrow interest required
New HampshireattorneyAttorneyYesYesEscrow interest required
New JerseyhybridTitle company (attorney review standard)NoNoStandard 3-day attorney review period by custom
New YorkattorneyAttorneyYesYesEach party has own attorney. Escrow interest 2% (GOL 5-601; preempted for national banks, Cantero 2026).
North CarolinaattorneyAttorneyYesNoNC Bar requires attorney in closing process
OhiohybridTitle company or attorneyNoNo
OregontitleEscrow companyNoYesEscrow interest required
PennsylvaniahybridTitle company (attorney common)NoNoTransfer tax split 50/50
Rhode IslandattorneyAttorneyYesYesEscrow interest required
South CarolinaattorneyAttorneyYesNoAttorney must be present at closing
TexastitleTitle companyNoNoNo state transfer tax
UtahtitleTitle companyNoYesEscrow interest required
VermontattorneyAttorneyYesYesEscrow interest required
VirginiatitleTitle company or settlement agentNoNo
WashingtontitleEscrow companyNoNoHigh transfer tax (progressive rates)
West VirginiaattorneyAttorneyYesNo
WisconsintitleTitle companyNoYesEscrow interest required

States That Require Escrow Interest

In 15 states, your mortgage servicer is required to pay you interest on your escrow (impound) account balance. This is separate from whether you earn interest yourself - the law requires the lender to pay it. Rates and rules vary:

States requiring escrow interest (April 2026)

Alaska | California | Connecticut | Iowa | Maine | Maryland | Massachusetts | Minnesota | New Hampshire | New York | Oregon | Rhode Island | Utah | Vermont | Wisconsin

New York and California both set a 2% per year floor (New York General Obligations Law 5-601; California Civil Code 2954.8 requires at least 2% simple interest). Other states specify fixed percentages by statute. One caveat for 2026: in May 2026 the Second Circuit held in Cantero v. Bank of America that New York's 2% requirement is preempted by the National Bank Act as applied to national banks, splitting with the Ninth Circuit (which has upheld California's identical-floor law against national banks). State-chartered banks and non-bank servicers stay bound either way, and the split may reach the Supreme Court. If you are in one of these states and your servicer is not paying escrow interest, file a written complaint with your state banking regulator.

Frequently Asked Questions

Which states require an attorney for a real estate closing?
As of 2026, the states generally considered to require or strongly customarily use an attorney at real estate closings are: Connecticut, Delaware, Georgia, Maine, Massachusetts, New Hampshire, New York, North Carolina, Rhode Island, South Carolina, Vermont, and West Virginia. Washington D.C. also requires attorney involvement. The specific requirement varies - some require the attorney to be present at closing, others require an attorney to review and certify title, and others require attorney-prepared documents. Sources differ on the exact list because some states impose the rule by statute and others by long-standing custom or bar-association rule.
What is the difference between a title company and an escrow company?
In practice the terms are often used interchangeably, but there is a distinction. A title company searches and insures title (providing both title insurance policies), while an escrow company holds funds and coordinates the closing. In many states a single company performs both functions. In California and other western states, independent escrow companies (not associated with a title company) are common. In most eastern states, the title company does both.
Does it cost more to close in an attorney state?
Yes. Attorney fees for real estate closings typically run $500 to $2,000 per party in attorney states, on top of standard title and closing fees. In states where both parties have their own attorney (as is customary in New York and Massachusetts), total legal fees can add $2,000 to $4,000 to closing costs. The upside is having dedicated legal representation reviewing documents and advising you - a title company is neutral and does not represent either party.
What is Illinois's unique situation with closings?
Illinois has a geographic split. In the Chicago metropolitan area (Cook County and surrounding counties), having an attorney represent each party is deeply customary and expected, though not legally required statewide. Downstate Illinois (everything outside the Chicago metro) typically uses title companies without attorney involvement. If you are buying in Chicago, budget for an attorney review period (typically 5 business days under the standard attorney review clause) and attorney fees of $500 to $1,500 per side.
Which states require lenders to pay interest on escrow balances?
As of 2026, states that require mortgage servicers to pay interest on escrow (impound) account balances include: Alaska, California, Connecticut, Iowa, Maine, Maryland, Massachusetts, Minnesota, New Hampshire, New York, Oregon, Rhode Island, Utah, Vermont, and Wisconsin. New York and California both set a 2% per year floor (New York General Obligations Law 5-601; California Civil Code 2954.8 requires at least 2% simple interest); other states specify their own rates by statute. One 2026 caveat: in May 2026 the Second Circuit held in Cantero v. Bank of America that New York's 2% rule is preempted by the National Bank Act as applied to national banks, creating a circuit split with the Ninth Circuit (which has upheld California's identical-floor law against national banks). State-chartered banks and non-bank servicers remain bound either way, and the split may reach the Supreme Court. Verify the current rate with your state's banking regulator.

Escrow Fees by State

What closing costs and who pays in each state

Real Estate Purchase Escrow

The full closing process guide

Updated 2026-04-27