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If you've closed on a property in another state before moving to Franklin, Tennessee, your experience here might catch you off guard. Tennessee operates under what's known as "table funding" laws, which create a distinct closing process that differs significantly from most other states. The biggest difference? Tennessee is an attorney state, meaning attorneys must be involved in your closing, and the way money flows through the transaction follows specific legal requirements.
Table funding refers to a process where the loan funds are delivered to the closing table—typically meaning they're wired to the closing attorney's trust account—right before or during the actual closing. This creates a same-day funding scenario that affects how your closing is structured, who handles what, and what paperwork you'll sign.
Tennessee law mandates that a licensed attorney conduct real estate closings. This isn't just a formality—the attorney serves as a neutral third party responsible for ensuring the transaction complies with state law, that all documents are properly executed, and that funds are distributed correctly.
The attorney's role includes:
In Franklin, most residential transactions use a local real estate attorney who coordinates with the title company. Your lender typically can't choose your closing attorney—that's usually decided by agreement between buyer and seller, or by local custom. In Williamson County, buyers often select the closing attorney.
Here's where things get different from states like California or Texas. In a table-funded transaction, your lender doesn't fund the loan days before closing. Instead, they wire the money to the closing attorney's trust account on the day of closing, often just hours before you sit down to sign.
This timing creates a specific sequence:
This same-day approach means your closing time might shift if there are wire delays. Morning closings are generally more reliable because banks process wires earlier in the day.
Title insurance in Tennessee works differently because of the attorney requirement. There are two types of policies: the owner's policy (which protects you, the buyer) and the lender's policy (which protects your mortgage company).
The closing attorney typically works with a title insurance company to issue these policies. In many transactions, the attorney's office conducts the title search, identifies any issues—like liens, easements, or ownership disputes—and then facilitates the title insurance through an underwriter.
In Franklin, title insurance rates are regulated by the state, so you won't see major price variations between companies. What does vary is the service level and how quickly issues get resolved. The attorney you choose matters more than the title company itself because the attorney handles problem-solving when title issues arise.
Common title issues in Williamson County include:
Since table funding creates a compressed timeline on closing day, preparation matters. Here's how to set yourself up for success:
Three weeks before closing: Confirm who the closing attorney will be. Get their contact information and ask about their typical process. Some attorneys prefer you review documents in their office the day before; others email everything in advance.
One week before closing: Verify your wire transfer details with your lender. Confirm the exact amount you'll need to bring to closing and whether they accept wire transfers, cashier's checks, or both. Personal checks typically aren't accepted for amounts over a few hundred dollars.
Two days before closing: Touch base with the closing attorney's office to confirm timing. Ask if there are any outstanding issues with the title or loan documents. This is when you'll find out if your closing time might shift.
Day of closing: Bring your government-issued photo ID (required by law), proof of homeowner's insurance, and your payment method. Plan for the appointment to take 30-60 minutes. Don't schedule anything tight immediately afterward, especially for afternoon closings where wire delays are more common.
The table funding structure means issues that surface on closing day can delay the entire transaction. The most common problems include:
Wire delays: If your lender's wire doesn't arrive by early afternoon, your closing might get pushed to the next day. This is why many experienced agents and attorneys prefer morning closings.
Last-minute title issues: Occasionally, a lien or judgment appears on the title search that wasn't there during the initial review. The attorney can't close until this is resolved or insured over, which might require negotiation with the seller.
Document discrepancies: If your name is spelled differently across various documents, or if there's a question about the property's legal description, the attorney must resolve it before closing can proceed.
Your closing attorney has legal and ethical obligations to protect all parties. If they identify a problem, they can't simply ignore it to meet a deadline. This protection works in your favor even when it causes short-term frustration.
Don't hesitate to contact the closing attorney before your appointment. Professional attorneys expect questions and prefer informed clients. Ask:
Tennessee's table funding laws and attorney requirements exist to protect buyers and sellers through proper legal oversight of real estate transactions. While the process might seem more complex than in other states, it typically results in fewer post-closing disputes and clearer title transfers.
The key to a smooth closing in Franklin is understanding these requirements early in your transaction. Work with professionals who know Williamson County's specific practices, prepare your documents and funds in advance, and stay in communication with your closing attorney as the date approaches. The structure might be different from what you've experienced elsewhere, but it's designed to give you confidence that your property transfer is legally sound and properly insured from day one.
Tennessee law mandates that a licensed attorney conduct real estate closings to serve as a neutral third party ensuring the transaction complies with state law. The attorney is responsible for reviewing documents, conducting title searches, issuing title insurance, and properly distributing funds, which provides additional legal protection for both buyers and sellers.
Table funding means your lender wires the loan funds to the closing attorney's trust account on the same day as closing, often just hours before your appointment. This creates a compressed timeline where your closing time might shift if there are wire delays, which is why morning closings are generally more reliable than afternoon appointments.
Yes, in Williamson County (where Franklin is located), buyers typically select the closing attorney rather than the lender choosing one. The closing attorney is usually decided by agreement between buyer and seller or by local custom, giving you control over this important decision.
You'll need a government-issued photo ID (required by law), proof of homeowner's insurance, and your payment method (wire transfer or cashier's check for large amounts). Plan for the appointment to take 30-60 minutes and avoid scheduling anything immediately afterward, especially for afternoon closings where delays are more common.
The three most common problems are wire delays from the lender (especially in afternoon closings), last-minute title issues like unexpected liens or judgments, and document discrepancies such as name spelling differences. Your closing attorney cannot proceed until these issues are resolved, as they have legal obligations to protect all parties in the transaction.