I am a student at Penn State University and I want to start wholesaling through my parents LLC (which is based in Baltimore). I read in a book that I need to find a closing attorney but I have some questions that I can't really find the answers to:
1. Can I still do deals in PA given the LLC is based in MD? And If I am doing deals in PA, does the closing attorney have to be located in PA as well?
2. If I want to wholesale deals in different states, do I need to find a new closing attorney per state?
3. How does the payments work for the closing attorneys? If I ask for a “For Sale by Owner” package (or any package for that matter), does that require money up front? Or do they only get paid once a deal is closed?
4. Are there any hidden fees associated with working with a closing attorney outside the actual closing?
Pennsylvania is not a closing attorney state. This means that you don't technically need an attorney to close a transaction.
Because most transactions do end up with title insurance, most folks in Pennsylvania will use a title company to close a transaction. Some title companies are owned by attorneys; others are not. Some folks prefer to get two birds with one stone by working with a title company owned by attorneys.
Title insurance fees are set by law. But most title companies also charge other administrative fees. If you are using an attorney to handle both title insurance and legal work, you will have to work it out with the attorney as to what he or she will charge.
In terms of whether you can still do deals in PA based on MD LLC, you could do so. But if you don't register as a foreign entity, you may run into issues down the line (e.g. being unable to sue in PA until registration is complete).
Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.
@Chris K. okay thanks for the info!