Real estate settlement is the legal process of transferring ownership of property from seller to buyer in Pennsylvania. A licensed title agent or attorney conducts the title search, prepares closing documents, handles the exchange of funds, and records the deed with the county. At Ament Law Group, our attorneys are licensed Pennsylvania title insurance agents who handle every aspect of settlement.
What Happens at a Real Estate Settlement?
Settlement — also called closing — is the final step in a real estate transaction. It is the meeting where the buyer signs the mortgage documents, the seller signs the deed, funds are distributed, and ownership officially transfers. In Pennsylvania, settlement is typically conducted by a title company or an attorney acting as settlement agent.
At Ament Law Group, our attorneys personally conduct every settlement. Unlike large title companies where you may never speak to an attorney, our clients work directly with a licensed attorney who reviews every document, explains every line item on the settlement statement, and ensures the transaction closes correctly. This level of attention helps prevent costly errors and gives both buyers and sellers confidence in the process.
Our Settlement Services
- Title Search and Examination — We conduct a thorough search of county records to verify that the seller has clear title to the property and to identify any liens, encumbrances, judgments, or outstanding mortgages that must be resolved before closing.
- Title Insurance — We issue both owner's and lender's title insurance policies to protect against defects in title that may not be discoverable through a standard search, including forgery, undisclosed heirs, and recording errors.
- Document Preparation — We prepare all closing documents including the deed, settlement statement, transfer tax certifications, and any required affidavits or declarations.
- Escrow and Fund Disbursement — We hold all funds in a secure escrow account and disburse them at closing in accordance with the settlement statement, including payoff of the seller's existing mortgage, real estate commissions, and transfer taxes.
- Recording and Post-Closing — After settlement, we record the deed and mortgage with the county recorder of deeds and ensure that all post-closing obligations are completed, including final title policy issuance.
Pennsylvania Transfer Taxes
Pennsylvania imposes a real estate transfer tax of 1% at the state level. Most municipalities impose an additional 1% local transfer tax, bringing the total to 2% in most areas of Westmoreland County. The transfer tax is typically split equally between the buyer and seller unless the agreement of sale provides otherwise. Certain transfers are exempt from transfer tax, including transfers between spouses, transfers to or from certain trusts, and transfers pursuant to a divorce decree. Our attorneys review every transaction for applicable exemptions to minimize costs for our clients.
What to Expect When You Work With Us
Engagement
Once you have an executed agreement of sale, give us a call. We will explain our settlement process, what you need to provide, and the expected timeline. We handle everything from here.
Title Search and Examination
We search county records to verify clear title, identify any liens, judgments, or encumbrances, and confirm the legal description of the property.
Document Preparation
We prepare the deed, settlement statement, transfer tax certifications, and all required closing documents. Every document is reviewed for accuracy before the closing date.
Settlement Day
Our attorney personally conducts your closing, explains every document, handles the exchange of funds through a secure escrow account, and ensures the transaction closes correctly.
Recording and Title Insurance
After closing, we record the deed and mortgage with the county, issue owner's and lender's title insurance policies, and complete all post-closing obligations.
Why Choose an Attorney for Settlement?
While Pennsylvania does not require an attorney at closing, having one provides significant advantages. An attorney can identify and resolve title issues that a title company may overlook, explain the legal implications of the documents you are signing, ensure that the terms of your agreement of sale are properly reflected in the closing documents, and protect your interests if unexpected issues arise at the settlement table. For one of the largest financial transactions of your life, having an experienced attorney at your side is a wise investment.
Common Title Issues We Resolve
Title problems are more common than most buyers and sellers expect. During our title search process, we frequently encounter outstanding mortgage liens from prior owners, unpaid property taxes or municipal liens, judgment liens against the seller, easements or right-of-way issues that affect property use, boundary discrepancies between the deed and the survey, and unreleased estates where a prior owner died without clearing probate. Discovering these issues before closing allows us to resolve them, either through lien payoffs, corrective deeds, or quiet title actions, so the transaction can proceed smoothly.
Serving Westmoreland County and Beyond
We conduct real estate settlements throughout Western Pennsylvania, including Westmoreland, Allegheny, Butler, Armstrong, Indiana, and Fayette Counties. Whether you are purchasing your first home in Murrysville, selling a commercial property in Greensburg, or refinancing in Monroeville, our attorneys provide the same level of personal attention and legal oversight at every closing. We coordinate with lenders, real estate agents, and the other party's counsel to keep transactions on schedule and resolve issues before they become problems.
Situations We Handle
Every settlement involves its own set of challenges. Here are some of the scenarios we regularly navigate on behalf of our clients:
- Unreleased mortgage from a prior owner: During the title search, we discover a mortgage that was paid off years ago but never properly satisfied on the record. We contact the original lender, obtain a satisfaction piece or prepare a petition under Pennsylvania's Satisfaction of Mortgage Act (21 P.S. § 721 et seq.), and clear the title so the transaction can proceed on schedule.
- Seller dies before closing: When a seller passes away between signing the agreement and the scheduled settlement, the transaction does not automatically terminate. We work with the estate, confirm the executor's authority, and ensure that the closing proceeds with proper legal authority and clear title transfer.
- Survey reveals an encroachment: A new survey shows that the neighbor's fence, driveway, or structure crosses the property line. We negotiate boundary agreements, easements, or purchase price adjustments to resolve the issue before closing rather than leaving the buyer to deal with it afterward.
- Municipal lien discovered at last minute: A water or sewer lien appears just before settlement. We verify the amount, arrange for payoff at closing, and ensure the lien is satisfied and the title is delivered free and clear.
Frequently Asked Questions
How much does a real estate settlement attorney cost in Pennsylvania?
Our settlement services cover title search review, document preparation, settlement attendance, deed and mortgage recording, and issuance of title insurance policies, all with fees discussed before we begin.
Who pays the transfer tax in Pennsylvania?
Pennsylvania imposes a 2% real estate transfer tax on most property sales — 1% to the state and 1% to the local municipality. By custom, the buyer and seller each pay half (1% each), though this is negotiable and can be allocated differently in the agreement of sale. Certain transfers, such as those between spouses or to a trust for the grantor's benefit, are exempt from transfer tax.
What is the difference between a title search and title insurance?
A title search examines public records to identify liens, encumbrances, and defects in the chain of title. Title insurance protects against losses from title defects that the search may not have uncovered; such as forged documents, undisclosed heirs, or recording errors. A lender's policy is required by most mortgage companies; an owner's policy is optional but highly recommended. As licensed agents for Chicago Title and First American, we issue both policies and can explain the coverage in detail.
Prepare for Your Closing
Download our free guide covering what to bring, what to expect, and how closing costs work in Pennsylvania.
Call (724) 733-3500 or contact us online to schedule your real estate settlement.
Do I really need an attorney for a real estate closing in Pennsylvania?
Pennsylvania does not require an attorney at closing, but that doesn't mean you don't need one. A settlement involves title examination, lien resolution, deed preparation, transfer tax calculations, and the coordination of funds between multiple parties, all with legal and financial consequences if done incorrectly. Online tools can't review a title commitment for exceptions that affect your use of the property, negotiate a seller credit for a survey encroachment, or catch an error in the settlement statement that costs you thousands.
There's a meaningful difference between a service that processes your transaction and an attorney who represents your interests. When a title issue surfaces after closing, or a boundary dispute arises, or you need advice about the deed, you want someone who was there, who knows the deal, and who has an ongoing obligation to you as a client. Our settlement services include both legal counsel and title insurance through Chicago Title and First American, so there's no reason to go without.