Why a Georgia Real Estate Attorney Must be at a Real Estate Closing (Part 2)
A GA Real Estate Attorneys Role at the Closing
The attorney who handles the real estate closing represents the lender and not the buyer or the seller.
While buyers and sellers often consult with a real estate attorney of their own, to do title searches, check documents (including the closing documents) or get advice, usually the closing attorney handles the closing alone, without input from other legal professionals, or any other attorneys being present. But there is nothing to stop the buyer and/or seller having their own attorney with them at the closing.
The federal law that covers the closing is the Real Estate Settlement Procedures Act (RESPA), and this legislation applies in addition to the local Georgia real estate license law that the Georgia Real Estate Commission administrates. Chapter 47 of the local state law specifies the process involved for first mortgage loans. The real estate closing attorneys role is also specified in this chapter.
Amongst other things, it is the Georgia real estate closing attorney’s responsibility to:
- Ensure all documents are completed correctly
- Ensure deeds, affidavits, and all other documents are delivered to the right people
- Prepare the settlement or closing statement
- Disburse money in terms of the closing statement
Georgia law also requires the closing attorney to prepare a detailed statement that shows all disbursements and receipts from the buyer and the seller; and this must be given to both parties, and possibly the broker if there is one involved.
So even though the closing attorney represents the lender, he or she has a responsibility to complete the closing efficiently and accurately in the interests of all parties involved.
Normally the closing attorney explains the contents of the documentation to the buyer and seller at the closing, before everything is signed and sealed. So if you are buying or selling property, or are in the business of lending money for mortgage loans, we are here to help you.
Call us at 678.324-8511;
E-mail us at Info@LawrenceLegal.Law; or
Click here to schedule a consultation.
- Published in Real Estate
Why a Georgia Real Estate Attorney Must be at a Real Estate Closing (Part 1)
Buying property can be exciting, but it can also be daunting. There are specific processes that must be followed, as well as forms that must be filled in and documents that must be completed exactly the right way. At the end, the real estate closing will result in the property being transferred to the purchaser.
Most people need to borrow money to buy a home, and this can be a formidable prospect in itself. Again, there are processes and documents involved, as well as negotiations and agreements to be concluded.
While the process of buying property is basically the same in all US states, local law does have an impact. For instance in Georgia the closing must be conducted by a licensed Georgia attorney, who is effectively a real estate specialist. Furthermore this attorney must be physically present at the closing, and according to a Georgia Supreme Court order, “in control of the closing process from beginning to end”. This was as a result of an attorney having participated in a real estate closing telephonically, which the Court found “ethically improper”.
In some other states, only attorneys can give legal advice relating to the closing. Real estate attorneys must also draft all the legal documentation. But a “non-attorney” may handle the closing.
While we don’t regularly handle real estate closings outside of the Metro Atlanta area, we can refer you to other attorneys in the State of Georgia who may be able to assist.
Call us at 678.324-8511;
E-mail us at Info@LawrenceLegal.Law; or
Click here to schedule a consultation.
- Published in Real Estate
Beware of House Flipping Schemes in Georgia
We have seen a rise in the “house flipping” trend over the last several years. House flipping is the process of buying a home, renovating the home, and then selling it for a substantial profit within the course of a very short time. Often, an investor is able to make money from flipping a house by fixing less costly cosmetic issues – such as carpeting, painting, and appliances – and then selling the house at a significantly higher price.
If you are an investor interested in house flipping, you should contact a knowledgeable attorney who can help with all aspects of your real estate transaction. Recently, several house flipping schemes aimed at potential real estate investors have come to light, exposing housing management investment companies and banks working together to defraud potential investors.
In one scheme, a Georgia Bank came under fire after the revelation that one of its co-founders and a chief executive was heavily involved in making fraudulent loans. Through the Bank, chief executive made short-term loans to inner-city investors interested in flipping house in low-income neighborhoods. Because the investors often did not have easy access to loans from traditional banks, the company charged hefty fees and exorbitant interest rates.
Another scheme in involved a European man who enticed flippers – for a substantial fee – with cheap properties and access to expert renovators. He then sent his investors to the Georgia Bank to obtain loans to buy his properties. Allegedly, kickbacks were paid to the loan officers at Georgia Bank who approved the funding. The European man is now in federal custody on charges of fraud. The European Man and the unnamed loan officer made money, but many of the properties were never renovated and the investors lost their money.
These flipping schemes have created additional problems in some of Atlanta’s most needy neighborhoods – with newly flipped homes sitting vacant and attracting criminals and squatters. Although many flipping schemes have come to light over the past decade, The Wall St. Journal reports that home flipping is making a comeback with investors buying up foreclosed properties. These flippers need “cold cash, lots of local-market knowledge and strong nerves.”
The best advice for real estate investors interested in getting involved in the flipping market is to do your homework, be wary of schemes, and be willing to take some risks. We can help you determine if the property you are interested in is suitable for flipping. However, if you believe, you have been a victim of house flipping fraud; please contact us immediately to discuss your case.
Call us at 678.324-8511;
E-mail us at Info@LawrenceLegal.Law; or
Click here to schedule a consultation.
- Published in Real Estate