Our firm performs real estate transactional work for a number of mortgage lenders, title companies, builders, real estate brokers, and private individuals. We assist with the purchase and sale of real estate, including negotiating and drafting purchase agreements and other documents, ensuring good title, and closings. Our experienced attorneys also assist our clients with the legal aspects of financing, re-financing, and foreclosures.

• Getting Ready For Your Closing
• On Your Closing Day
• Why you need title insurance
• Why You Need A Survey
• If You Cannot Attend Your Closing
• Helpful Hints For A Smooth Closing
• If You Are Refinancing
• What are closings/courtesy closings?
  

GETTING READY FOR YOUR CLOSING

The closing is the procedure by which the title to the property is transferred from the seller to the purchaser. If the purchaser has obtained a loan, the lender's required documents are executed at this time. In the state of Georgia, the closing must take place under the direction of an attorney who represents the lender, if a loan is involved. If the transaction is cash, then the attorney may represent either the seller or the purchaser. In preparation for this event at our law firm, consider the following pointers to facilitate a smooth closing:

Prior to closing...

For the seller:

1. Find out whether your closing will be scheduled in our Evans office (706-210-8040) or our Hephzibah office (706-922-8091). Call the receptionist or the loan officer to find out what closing secretary in our firm is assigned to your file.

2. Forward a copy of the warranty deed from your purchase of the property to the closing secretary.

3. Provide us with a copy of your payoff information on any and all loans secured by your property, including:

   1. loan account number;
   2. lender's name, address and telephone number;
   3. copy of payment coupon or most recent account statement;
   4. if readily available, a copy of the first page of your security deed.
      
4. Anticipate in advance any possible problems regarding outstanding tax bills and liens on your property.
   
5. Request a termite clearance letter from your termite company.
   
6. Please provide all relevant information regarding your Homeowners Association, such as contact person, yearly or monthly fees, mailing address, and any amounts paid or due.

For the Buyer:

1. Send an original, fully executed contract to your lender and to the law firm.

2. Decide whether you want to order a survey. Does your lender require it? Does the contract address this issue? In most instances, a survey is recommended whether or not your lender requires it. Your title insurance company may place limitations on its coverage if you do not have a survey.

3. Anticipate how much money you will need to bring to your closing, and contact the law firm on the day prior to closing to confirm the amount needed. Remember to bring certified funds if the amount you owe is $5,000 or more.

4. Plan to purchase owner's title insurance in addition to lender's title insurance, to protect the equity you have in your property.

ON YOUR CLOSING DAY

Congratulations! If you have a scheduled closing, you have successfully negotiated your real estate transaction, the purchaser has obtained a loan, and you are close to reaching your goals. You can plan on your closing taking approximately one hour. If you have prepared for closing after reading this web site and there are no problems with the loan, your closing may take much less time than that. On the other hand, failure to prepare can significantly delay a closing.

If you are the seller:

1. Bring a photo ID.

2. Bring a termite clearance letter.

3. Bring corporate seal and original corporate resolution, if you are executing documents on behalf of a corporation. If you are signing for a Limited Liability Corporation (LLC), bring the LLC seal if you have one, and a copy of your LLC Operating Agreement.

4. Bring keys, home warranty documents, garage door openers.

If you are the buyer:

1. Bring a photo ID.

2. Bring certified funds. This form of payment is the most preferable and reliable. Also bring your checkbook to pay additional amounts if the certified check is less than what is due.

3. If you cannot bring certified funds, and you must wire your money, wire at least twenty-four hours in advance of your closing. Remember that wiring funds is not like e-mail! It often takes a full day from the time the wire is sent before it is confirmed in our bank account. Without the funds, we cannot close your loan.

4. Bring homeowner's insurance policy and paid receipt or an invoice so we may mail the payment.

5. Bring a contract with all exhibits and addendum fully executed with original signatures, for closing attorney's file.

6. Provide a way to contact your loan officer if questions arise.

7. All documents required by your lender as a condition to close should be brought to closing and/or evidence you have provided these documents to your lender prior to closing.

8. It is a good idea to bring the originals of anything you have previously faxed to your lender.

Title insurance protects the policy owner in the event a third party makes a claim to the title of the property. A title examination is prepared prior to your closing, and presumptively there will be no title problems when you close. However, there are several scenarios that can cause defects in title to property that are undetectable by a title exam. Here are a few examples:

1. Suppose Mr. and Mrs. Smith own the property jointly, but Mr. Smith forges Mrs. Smith's signature on the deed, conveying the property to you. If Mrs. Smith sues for the property, she wins, you lose. A forgery is not discernable in a title exam.

2. Similarly, suppose Mr. Smith engaged in a fraudulent conveyance to you by pretending to be the property owner, Mr. Jones, when in fact he was not. Fraud is not discernable in a title exam either.

3. If your builder fails to pay a subcontractor, the subcontractor may file a lien on your house to collect his money. Although the lien is filed a month before your closing, it may not be listed on the courthouse index for several months. Therefore, the title examiner would not be able to find that lien in his title exam.

4. Assume again that the subcontractor files a lien on your house but the lien has been mis-filed in the county records, the lien is valid but not apparent to the examiner.

In the event a third party makes a successful claim on your title you could lose your home. Even if someone makes a claim to your property that is eventually determined by a court to be spurious, your legal fees to defend that claim will be significantly more than the one-time cost for your coverage.

When you receive a Good Faith Estimate from your lender, you will see a charge for Lender's Title Insurance. As a condition of the loan, the lender will require this coverage to protect the loan amount. However, the lender's title insurance does not cover your equity in your house. You will have the option at closing to purchase Owner's Title Insurance. The cost of title insurance is a one-time fee at closing determined by a rate chart issued by the title insurance company. The policy is effective for as long as you own the property.

Please note that Owner's Title Insurance is usually not included on your Good Faith Estimate because it is not a requirement of your lender. Our firm, however, will include the charge for that policy on your Settlement Statement. You may elect to refuse the coverage at closing. Be sure to discuss Owner's Title Insurance with your other real estate professionals.

A few years ago, lenders usually required a survey of the property as a requirement of obtaining the loan. Today, most lenders no longer require the purchaser to get a survey. However, even if your lender does not require it, you may want to purchase a survey because of the many benefits it offers.

A survey is a map of your property, showing precisely where your house lies within the property boundaries, as well as easements, other encumbrances, set back lines, and building lines. A survey will reveal whether the property is in violation of any county requirements or PUD restrictions and whether there are any encroachments on the property. Surveys are prepared by professional, licensed surveyors pursuant to industry standards.

Purchasers sometimes mistakenly believe that since they are buying new construction there will not be any encroachment issues. Builders often unwittingly create driveway encroachments during construction that are revealed by a survey. Building setback violations are also frequently caused by builders and exposed with a survey.

Even if your subdivision plat is recorded at the county courthouse, you still need a survey. The subdivision plat only shows the boundary lines of the lots and the placement of setbacks and easements. It does not display the boundary lines of your house on your lot.

Purchasers of fee simple townhouses sometimes incorrectly assume that a survey is not necessary. Remember that townhouses can just as easily be built in violation of setback requirements or encroaching upon easements.

It is also important to note that a survey conducted for the seller at the time the seller purchased the property is not a protection for a subsequent purchaser. A purchaser must have his or her own survey conducted.

If you are planning to purchase owner's title insurance, your policy will offer more extensive coverage if you have a survey. Generally, title insurance companies do not insure against matters that would be disclosed on a survey. If you purchase a survey, however, your title insurance company will usually insure that the survey is correct.

If you want a survey prepared, you should make arrangements for the survey with our office immediately so that the survey can be completed and reviewed before your closing. This allows time to address any problems, pursuant to your contract with the seller, a survey might reveal.

IF YOU CAN NOT ATTEND YOUR CLOSING

Sometimes it's hard to get all buyers, all sellers, the agents and the lender together at one time for a closing. Unforeseen emergencies can interrupt even the best-laid plans. In the event you cannot attend your closing you must execute a Power of Attorney. This is a written document authorizing another person to act as your agent and sign on your behalf.

If you anticipate your absence at the closing, call our law firm immediately. If you are a borrower, we must call your lender and be sure they will accept a valid Power of Attorney on their loan documents. We can prepare a Power of Attorney on behalf of the lender for you to review. Although forms available on the web or at Office Depot are convenient and, sometimes, free, they will most likely not comply with the Georgia real estate Power of Attorney requirements. A Power of Attorney to transfer real property must be specific to the property, referring to the property particularly. Furthermore, the Power of Attorney must be witnessed and notarized. Of course, the witness cannot also notarize the document, and neither can be a party to the transaction or the nominated agent.

Once the document is fully executed you should fax a copy to us. But, we must have the original at the closing. Without the original, the closing cannot go forward. A copy of your photo ID must also accompany the Power of Attorney.

Finally, be sure that you can be reached by phone during the closing in the event material issues arise that require your attention.

HELPFUL HINTS FOR A SMOOTH CLOSING

1. Read your contract again prior to closing. Your closing attorney is bound to close the loan strictly per the contract terms.

2. If the parties have revised the terms of the contract, have all addendum and exhibits prepared prior to closing, fully executed in advance, and make sure the law firm, the lender, the parties and the real estate agents all have contracts with all attachments. Your closing may be delayed when additional addendum are not prepared and executed until everyone arrives at the table.

3. Wired funds are not magic! When lenders or buyers wait to wire funds the morning of the closing, the funds usually do not reach us in time for the closing. Before a closing can be completed the transfer of funds must be confirmed in our bank account.

4. Bring certified funds to your closing - not personal checks.

5. Know that the closing attorney's role at closing is to represent the lender's interest and the closing attorney is not authorized to provide legal advice to the buyer or the seller. Feel free to consult with your own attorney, if legal advice is needed.

6. Handle disputes regarding contract terms, price negotiations, misunderstandings with loan officers, repairs and costs set-offs outside of the closing.

7. You have a right to read all of your closing documents before you sign. If you wish to read each document, let us provide the documents to you the day before your closing so that the actual closing can proceed in a timely manner once all parties and agents have arrived. The closing attorney will give you concise explanations of each document, whether or not you have read them completely. And remember, the closing documents must be executed because they are required by your lender. Once you determine that the figures on your Settlement Statement and the terms of your note are correct, very little, if anything, is negotiable at the closing table.

8. Similarly, for seasoned buyers, if you are pressed for time and want to move quickly, let your closing attorney know at the start of your closing and the explanation and signing process can be expedited to accommodate your schedule.

9. Transfer tax is paid in accordance with the terms of the contract. Do not assume that the seller always pays it as a matter of "law".

10. Generally, if your closing is scheduled for a Friday or during the last day or two in a month, many lenders heavily schedule closings. If you have control over when you can close, you might prefer to request an early morning time or a day other than the end of the month.

11. Verify with your loan officer, in advance of closing, your interest rate loan program and estimated closing costs to avoid unhappy surprises at your closing.

12. Remember that your "Good Faith Estimate" is merely an "estimate" and may not include some items that appear in the final calculation, such as owner's title insurance and homeowners' dues.

IF YOU ARE REFINANCING

A closing for a loan refinance is much like your closing experience when you purchased your home. The lender's documentation that you must sign will be very similar to your original loan. However, only you, your lender or mortgage broker and the closing attorney will be present for the closing.

In order to prepare for your closing, we must obtain certain information prior to the closing:

1. Your new lender will require Hazard Insurance covering the loan amount. Please provide us with your insurance agent's name, telephone number and annual premium amount. Without this coverage, you cannot get a loan!

2. Our office will obtain payoff statements from your existing mortgage company (or companies). In order to do so, we must have the name and phone numbers of each of your lenders and your loan numbers for each loan to be paid off.

3. Please provide your social security number. Without it, we cannot obtain your payoff amounts from your lenders.

4. If you are in a subdivision, we will need a contact person with your Homeowners Association to ensure that your obligations are paid and make proper prorata credits if already paid.

5. Some lenders require a termite letter as a condition of the loan. Please confirm whether your lender requires it or not. If so, you must provide that letter to us prior to your closing for our review.

On the day of closing please bring these items:

1. You and any co-borrowers on the loan. If you are the only person on the loan but your spouse is on the title, your spouse must attend also to execute a few certain documents such as the Security Deed.

2. If you owe money, remember to bring certified funds if the amount you owe exceeds $4,999.00.

3. Your lender may require that you pay off other accounts at the closing. If so, bring payoff documents or account statements to ensure that we have the correct information.

4. If your lender has made any other conditions to your loan, please bring the original copies even if you have already faxed them to us.

5. A photo ID is required just as it was with your original loan.

6. In the event the amount you owe varies from the amount you prepared to pay, please bring your checkbook.

7. If your lender required a termite letter, please bring the original even though you have already faxed it to us.