Closing with a particular lender

[Wendy S.]

Why do some listings say "Must close with Lender X."

Is this a red flag?

What are the pros and cons of this?

I'm looking at a possible house purchase but it states that closing must be done with a particular attorney.

[Chris Mason]

If it literally says "must close with lender x," and not "must cross-qualify with lender x," or "we will offer you an incentive to use lender x," then I'm going to go out on a limb without knowing your state laws and say that it's probably illegal. If a lawyer or Realtor in Georgia pops in to say that I'm wrong on that, they might be right since they know Georgia better than I do.