Canadian real estate lawyers are accustomed to handling closings end-to-end. Under Canada’s Torrens-style land titles systems, the government register provides statutory assurance of title, and closings largely involve inter-law-firm fund exchanges. When your client purchases real property in the United States, however, the process is fundamentally different. There is no government guarantee of title. Instead, title evidence and settlement are private-market functions performed by title insurers and escrow/settlement agents. Understanding these differences is essential to properly advising your client on a U.S. real estate acquisition.
The U.S. closing process revolves around a "Closing Triad": (1) the buyer/seller (and any lender), (2) the Title Company, which performs the title search and issues insurance, and (3) the Escrow/Settlement Agent, which holds funds and documents and coordinates recording. Your choice of title insurance coverage and your review of the ALTA Title Commitment during due diligence are critical. Meanwhile, "good-funds" rules and cross-border wire timing can make or break your closing date.