In Georgia, each real estate closing must be conducted by a Georgia real estate attorney. 

Further, this attorney must be physically present at the closing, and he or she must maintain control of the closing process from start to finish. 

Do you need a closing attorney? Contact us today to discuss your options

 

In this blog, we discuss the role a Georgia real estate attorney plays in the closing process.

Role of the Closing Attorney in Georgia

The closing attorney performs two primary functions: 

1) oversees the conveyance of the property based on the contract terms; and 

2) ensures the buyer’s lender has a first lien position when recording the new security deed (similar to a mortgage or deed of trust used in other states). 

The closing attorney must search the title to ensure that nothing impedes the lender’s first lien position. Based on the title search results, the closing attorney will prepare a title commitment for the lender and buyer, providing the conditions upon which the attorney will issue title insurance.

The closing attorney may also perform title clearance. Title clearance will establish ownership and settle disputes. The closing attorney is also responsible for obtaining payoff amounts for current loans, unpaid taxes, outstanding homeowner’s association dues, or recorded liens or judgments against the property. These items must be paid at the time of closing to ensure title to the property is properly transferred from seller to buyer.

When notified by the lender, the closing attorney coordinates with the parties and their agents to schedule the closing ceremony. During the closing, the closing attorney will explain the closing documents to the buyer and seller and answer any questions. All closing funds are collected by and disbursed from the attorney’s trust account.

After the closing, the closing attorney records both the deed conveying the property and the lender’s security deed. The closing attorney also issues the lender’s and owner’s title insurance policies.

Types of Title Insurance Policies 

There are two types of title insurance policies:

1) Lender’s title insurance. This ensures the lender has a first lien position on property and is typically required by a lender.

2) Owner’s title insurance. This protects the buyer by ensuring the buyer has a marketable title. It is optional and paid at closing as a one-time premium.

Each of these is paid at closing, typically by the buyer.

 

Contact an Experienced Georgia Real Estate Attorney

Having an experienced real estate attorney handle your closing can make all the difference in ensuring a smooth transaction. At Tetreault & Associates, we specialize in Real Estate Closings in Savannah, Georgia. To schedule a consultation, contact us today.