What Is a Split Closing? 

A split closing occurs when the buyer and seller each work with separate title companies or title attorneys. Rather than both parties signing documents in the same room, each side handles its own paperwork independently. 

Under Section 9 of the Real Estate Settlement Procedures Act (RESPA), both parties have the right to choose their own title agency. In Tennessee, buyers and sellers will almost certainly close at different title companies, so do not expect to sit across from the other party at a shared table.

How Does a Split Closing Work in Middle Tennessee? 

Each title agency conducts its own independent title search and prepares its own title commitment. Responsibilities are divided based on which party each company represents: 

The seller's title attorney or company typically handles deed preparation, payoff of existing liens, HOA and tax prorations, and distribution of proceeds. The buyer's title company coordinates with the lender, prepares the closing disclosure, issues title insurance policies, and manages the funds wire.

Closing fee responsibility is negotiable, though each party traditionally pays their own since they close separately. 

A Real-World Middle Tennessee Example 

A couple purchasing a home in Brentwood works with a title attorney in Green Hills familiar with Davidson County records. The seller uses a title company in Williamson County. Both firms conduct independent title searches, coordinate to confirm final numbers, and each party signs at their respective attorney's office. Funds are wired, the deed is recorded with the Davidson County Register of Deeds, and neither party ever shares a room. 

Real estate property closings in Nashville, TN, and the surrounding counties routinely follow this exact structure, making it completely ordinary for all parties involved.

What Changed in Tennessee in 2026? 

Effective July 1, 2026, Tennessee law now requires that two title insurance agencies separately representing the buyer and seller in a transaction, who agree to share title insurance premiums, commissions, or other fees, provide written notice to both parties that such fees will be shared and obtain signed written acknowledgment from each party. 

A title insurance agency is not required to participate in any fee-sharing arrangement. The law also prohibits a seller's title insurance agency from claiming it will accept, assume, share, or guarantee liability for losses under a policy it did not issue. 

For buyers and sellers navigating real estate property closings, the practical closing experience does not change. These rules govern how title companies structure agreements behind the scenes.

Benefits and Drawbacks for Buyers, Sellers, and Realtors 

Split closings offer real advantages but require careful coordination. 

Benefits: Parties sign separately, which speeds settlement and avoids lengthy table discussions about the property. Each party's title company serves as their advocate. Realtors can recommend a preferred title company based on past experience, giving their clients greater confidence. 

Potential drawbacks: Miscommunication between title companies can cause delays. Two sets of attorneys and processors require clear, proactive communication throughout the process. 

What to Look for When Choosing a Title Attorney in Nashville 

Choosing the right title attorney for your side of a split closing matters. Prioritize these qualities: 

Look for an attorney-owned firm where a licensed attorney oversees your file from contract to close, not just a processor. Confirm the firm has direct experience in Davidson, Williamson, Rutherford, and surrounding Middle Tennessee counties. Ask whether the firm is approved by your lender, since lender approval is required for the buyer's closing. Verify the firm carries errors and omissions coverage and issues title insurance through established underwriters. Real estate property closings in Tennessee typically take 30 to 45 days from contract acceptance, so choose a firm with staffing to meet that timeline reliably.

What Is a Split Closing in Tennessee? 

A split closing is a transaction where the buyer and seller each use separate title companies or title attorneys to close their respective sides. Both arrangements are legal, common, and permitted under federal RESPA rules. Each party selects their own representative, and the two companies coordinate to finalize the transaction and transfer title. 

Does the New 2026 Tennessee Law Affect My Closing? 

For most consumers, the July 2026 law does not change the closing experience. It primarily governs written disclosure and consent requirements when two title companies agree to share premiums. Your Realtor or title attorney can explain whether any fee-sharing arrangement applies to your specific transaction. 

Can My Realtor Recommend a Title Company in Tennessee? 

Yes. In Tennessee, the seller can recommend a title company, and buyers may follow their lender's or agent's recommendation. There is no obligation to use any specific company, so buyers are encouraged to ask questions and choose a firm they feel confident in.

Work With a Trusted Nashville Title Team for Your Next Closing 

Real estate property closings do not have to be complicated with experienced legal professionals managing your side of the transaction. Premier Escrow, an attorney-owned title company serving Nashville, TN, and communities across Middle Tennessee, including Green Hills, Brentwood, and Franklin, provides comprehensive real estate closing services for buyers, sellers, builders, developers, and lenders. With over 75 years of combined legal experience, the team handles every file with attorney oversight from start to finish. 

Contact Premier Escrow today to request a consultation, or call (615) 269-6626 to speak with a member of the team directly.