Split closings are common in North Carolina, particularly when one party is out of town or prefers their own legal representation. But they’re also breeding grounds for miscommunication, misplaced responsibilities, and professional liability.

If you’re one of two firms handling a closing, here are a few tips to help protect your client and your license.

Put Everything in Writing—Then Reconfirm

Every detail counts—and assumptions are where things go wrong. When responsibilities are split between firms, it's critical to clearly define who is handling what. That includes:

• Collecting the earnest money?

• Requesting payoffs?

• Recording documents?

• Funding disbursements?

Key Tip: Use a shared checklist or escrow letter reviewed and signed by both firms. This simple document can lock everyone into shared expectations.

Trust Account Rules Still Apply—Fully

Even in split closings, each firm must comply independently with Rule 1.15 of the North Carolina Rules of Professional Conduct. Each attorney remains solely accountable for the handling, safeguarding, and disbursement of any funds that pass through their trust account. That means:

• No disbursing before funds are cleared

• No relying on the other side to “have it covered”

• Full, contemporaneous records for every transaction

Key Tip: If funds flow through your office, you're responsible for ensuring full compliance with trust accounting rules—no matter what another attorney says or assumes.

Confirm, Don’t Assume

The other firm says they wired the payoff? Recorded the deed? Funded the loan?

Don’t take their word for it. In a split closing, each firm is responsible for its part of the transaction—and assuming something was handled without proof can lead to serious consequences. If a deed isn’t recorded properly, or a payoff isn’t sent on time, your client (and your license) could be at risk.

Always verify critical steps like disbursements, recordings, and loan funding. Check wire confirmations, review recording receipts, and get written updates from the other side. If it’s not in writing, it didn’t happen.

Key Tip: Confirm independently and keep documentation of every verification. Courts and regulators won’t accept “but the other side said they did it.”

Educate the Client

Buyers and sellers often don’t understand what a “split closing” means, or how it affects the process. Make sure your client understands:

• You represent one side of the transaction, not both

• Two firms = two trust accounts = more coordination

• Timelines might shift depending on when funds are confirmed

Key Tip: Set expectations early. Let your client know that until both sides have confirmed receipt of funds and complied with lender requirements, disbursement and closing may be delayed. Clear communication now prevents frustration later.

Lender Instructions Must Still Be Followed

Many lenders require specific agents to handle funding or document prep. Split closings don’t override these requirements.

Key Tip: Always send lender instructions to both sides of the deal. Misalignment here can result in noncompliance—or even delayed funding.

Keep an Audit Trail

When two firms share responsibilities, the risk of miscommunication increases. If something goes wrong, your ability to show what you did (and when) is crucial. Every file should contain:

• Copies of emails confirming responsibilities

• Checklists showing who handled what and when

• Copies of lender instructions, wire confirmations, and recording receipts

Key Tip: If something goes wrong, the side with better documentation usually walks away clean.

Bottom Line: Split closings require shared effort—but individual diligence. 

The key to success is clear expectations, constant communication, and careful compliance.

Have questions about split closings?

Key Title is your go-to partner for split closings across North Carolina. Our experienced team of in-house attorneys understands the nuances involved in split closings. Whether you're coordinating with another firm, working through lender requirements, or just need a second set of eyes, we’re here to help you close with confidence.