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Closings in Georgia
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Contracts
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Lenders
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Attorneys/Title Companies/Escrow Agents
Closings in Georgia
Each state is unique in its approach to real estate law. Unlike many
areas of our history and the law, real estate is not governed, or
usurped, by Federal laws. Each state’s real estate laws rule supreme
within its borders. Several ideas will be discussed that govern the
law and real-estate practice in Georgia. (This is to familiarize you
with Georgia’s customs. Please do NOT try to draw a parallel with
laws of other states.)
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Contracts
Contracts in Georgia are usually negotiated and written by the real
estate agents. Agents have experience in this process. The Georgia
Real Estate Commission provides "standard" contracts which enable
parties to fill in the particulars of each transaction and have a
presentable, legally binding contract. Each party certainly has the
right to have the contract reviewed by their attorney. A standard
provision says "This contract is contingent on approval by
buyers/sellers attorney within 5 business days."
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Lenders
There are many lenders in Georgia anxious for your business. They
compete on service, rates and costs. They work closely with agents
and attorneys. It is not unusual to interview 2 or 3 lenders or loan
officers before deciding on one. Please note: Loan Officers work on
commission!! This means that they are service oriented and want your
business. They do not get paid unless the loan closes so they are
working for you! Do NOT make application with more than one lender.
You can only get one financing plan to purchase a home and someone
will do a lot of work and not be compensated if there are two
applications. Always feel free to ask about the experience and the
company of the loan officer.
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Attorneys/Title Companies/Escrow
Agents
In Georgia, Attorneys handle real estate closings. Although title
companies have offices in Georgia, they generally work with
attorneys and do NOT handle closings. What would be "Escrow Agents"
in other states are attorneys in Georgia. The attorney is an agent
of the title company. The attorney also represents the Lender at
closing.
At closing, the attorney executes the contract between the buyer and
seller, and handles the legal aspects of transferring title. All
loan documents are handled by the attorney, based on instructions
he/she receives from the lender. The attorney orders and reviews the
title, pays the seller’s loan off, collects the lenders closing
costs, and send the proper documentation to the courthouse for
recording.
After closing, the attorney sends the Warranty Deed to the purchaser
(with the Owners Title Insurance Policy if purchased by the Buyer,
which is optional) and the Mortgage/Security Deed is sent to the
Lender.
The Buyer and the Seller have the option and right to choose (and
pay) for their own attorney. This is rarely done in Georgia. Unless
there is a MAJOR dispute between the buyer and the seller which does
not affect the lender, the attorney will usually be able to solve
problems and answers questions which each party may have.
Attorneys work with many lenders and real estate agents. No one
"wins" if the loan doesn’t close, the seller doesn’t sell and the
buyer doesn’t buy.
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