Buying or selling property involves much more than signing a contract and exchanging keys. A Georgia real estate attorney helps coordinate the legal side of the transaction, reviews the property’s title, prepares closing documents, manages the transfer of funds, and oversees the closing process.
This role is especially important in Georgia. A real estate closing is considered the practice of law in the state and must be conducted under the supervision of a Georgia-licensed attorney. The closing attorney must remain responsible for the process rather than serving only as a witness or notary.
Understanding what the attorney does can help buyers and sellers prepare for closing and recognize potential issues before ownership changes hands.
Reviews the Purchase and Sale Agreement
The purchase and sale agreement establishes the terms of the transaction. It may address:
- The purchase price
- The earnest money deposit
- Financing requirements
- The inspection or due diligence period
- Repairs or seller concessions
- Personal property included in the sale
- The closing date
- Possession of the property
- Conditions that must be satisfied before closing
A real estate attorney can review the contract and explain how its provisions may affect a client’s rights and responsibilities. The attorney may also help prepare amendments, special stipulations, extension agreements, or other documents when the standard contract does not fully address the parties’ arrangement.
This review can be particularly valuable when a transaction involves unusual terms, investment property, vacant land, new construction, inherited property, seller financing, or temporary occupancy before or after closing.
Examines the Property’s Title
A buyer needs more than physical possession of a property. The buyer also needs assurance that the seller has the legal authority to transfer ownership and that the title does not contain unresolved problems.
The closing attorney generally orders or conducts a title examination. This process involves reviewing public records for matters that could affect ownership, including:
- Existing mortgages
- Tax liens
- Judgments
- Easements
- Restrictive covenants
- Homeowners’ association liens
- Prior deeds
- Estate or probate issues
- Errors in the property’s legal description
- Ownership claims involving former spouses or family members
A title problem does not always prevent a sale, but it may need to be resolved before closing. For example, an existing mortgage may need to be paid off, an unreleased lien may need to be cleared, or an additional owner may need to sign the deed.
The attorney may also explain the difference between lender’s and owner’s title insurance and how each type of policy relates to the transaction.
Helps Address Title Problems
When a title search uncovers one of several common title issues, the real estate attorney helps determine what must happen before the property can be transferred.
Depending on the circumstances, this may involve:
- Requesting a mortgage payoff and release
- Obtaining documentation showing that a lien was satisfied
- Correcting an inaccurate deed
- Locating a missing owner or heir
- Reviewing probate documents
- Resolving questions about marital interests
- Preparing corrective affidavits or other instruments
- Coordinating with lenders, surveyors, title insurers, or other attorneys
Some title issues can be addressed quickly. Others may require additional documentation, negotiation, probate proceedings, or a separate legal action. Identifying these concerns early can reduce the risk of a delayed closing.
Coordinates With the Lender and Other Parties
A closing attorney often communicates with several people and organizations throughout the transaction. These may include:
- Buyers and sellers
- Real estate agents
- Mortgage lenders
- Loan processors
- Title insurance companies
- Homeowners’ associations
- Surveyors
- Insurance agents
- Tax offices
- Other attorneys
In a financed purchase, the attorney may receive loan instructions and documents from the buyer’s lender. The attorney reviews those instructions, prepares the closing package, confirms that lender conditions have been addressed, and coordinates the proper execution of the loan documents.
The attorney may also request payoff information for the seller’s existing mortgage and confirm outstanding taxes, association charges, or other amounts that must be collected at closing.
Prepares and Reviews Closing Documents
Real estate transactions require documents that transfer ownership, secure financing, allocate expenses, and confirm the parties’ obligations.
Depending on the transaction, the closing attorney may prepare or review documents such as:
- The deed transferring ownership
- A settlement statement or closing disclosure
- Loan documents
- A security deed
- Affidavits
- Tax forms
- Lien waivers
- Seller certifications
- Title insurance documents
- Powers of attorney
- Assignment documents
- Payoff and release documents
Georgia law treats conveyancing, the preparation of legal instruments, opinions concerning title, and legal advice as activities involving the practice of law.
The attorney must make sure the documents reflect the transaction and satisfy applicable legal, lender, and recording requirements.
Calculates the Financial Details of Closing
The closing attorney or closing team also helps prepare the financial accounting for the transaction.
The final figures may include:
- The purchase price
- Earnest money credits
- Loan proceeds
- Seller concessions
- Property tax adjustments
- Homeowners’ association charges
- Mortgage payoffs
- Recording fees
- Title insurance costs
- Attorney fees
- Real estate commissions
- Other credits and expenses
These amounts are shown on the settlement statement or closing disclosure. Buyers and sellers should review the figures before signing and ask questions about anything they do not understand.
Manages Closing Funds
The closing attorney is commonly responsible for receiving and disbursing the money associated with the transaction.
Funds may include the buyer’s required cash to close, mortgage proceeds, seller proceeds, mortgage payoffs, taxes, commissions, title charges, and recording expenses. Attorneys handling client or third-party funds are subject to professional rules governing safekeeping property and trust accounts.
Before distributing funds, the attorney must confirm that the closing requirements have been met and that the documents have been properly executed.
Buyers should follow verified wire instructions carefully. Real estate transactions are frequent targets of wire fraud, so payment instructions should be independently confirmed through a trusted phone number before money is sent.
Oversees the Closing
At closing, the attorney guides the parties through the documents and supervises their execution.
The attorney may:
- Verify the identities of the signers
- Explain the purpose of the documents
- Answer legal questions related to the closing
- Confirm that signatures and notarizations are completed correctly
- Review the financial figures
- Ensure lender instructions are followed
- Address last-minute issues affecting the transaction
Georgia permits certain closings to be conducted using electronic means when legal and professional requirements are satisfied. However, the attorney must remain in control of the closing process from beginning to end.
Records the Deed and Security Documents
The transaction is not fully complete simply because the parties have signed the documents.
After closing, the deed and other recordable instruments must be submitted to the clerk of the superior court in the county where the property is located. Georgia recording records include deeds, mortgages, liens, plats, and other instruments affecting real estate.
For Savannah property, the appropriate documents are generally recorded in Chatham County. Recording creates a public record of the ownership transfer. When a buyer finances the purchase, the lender’s security deed is typically recorded as well.
The closing attorney also distributes funds and provides copies of the completed documents to the appropriate parties.
Does the Closing Attorney Represent the Buyer or Seller?
The answer depends on the structure of the transaction and the attorney’s engagement.
The closing attorney does not necessarily serve as personal legal counsel for every person attending the closing. In a lender-financed transaction, the attorney may have responsibilities connected to the lender and the closing process. In other circumstances, the attorney may represent the buyer or another identified party.
Buyers and sellers should not assume that the closing attorney represents their individual interests on every contract, inspection, disclosure, financing, or negotiation issue.
Anyone who wants independent advice should ask whom the attorney represents and whether separate counsel may be appropriate. Independent representation may be particularly useful when:
- The contract contains unusual provisions
- The parties disagree about repairs or disclosures
- The property is being sold by an estate or trust
- The transaction involves business partners or family members
- The buyer is purchasing investment or commercial property
- There is a boundary, easement, or access dispute
- One party is financing the transaction
- A party is signing through a power of attorney
- The buyer or seller does not fully understand the documents
Why Involving an Attorney Early Can Help
A real estate attorney should not be viewed only as the person who appears at the closing table.
Legal issues can develop well before the scheduled closing date. Contract language, ownership questions, financing delays, title defects, survey concerns, association restrictions, and estate matters may all affect whether the transaction can proceed as planned.
Involving an attorney early may provide more time to identify concerns, gather documents, revise agreements, and resolve title problems. Waiting until the day of closing can make otherwise manageable issues more difficult to address.
Get Legal Guidance for Your Savannah Real Estate Transaction
Whether you are buying, selling, refinancing, or transferring property in Savannah, Tetreault Law can help you understand the legal steps involved in the transaction. The firm assists with contract matters, title concerns, closing documents, property transfers, and other issues that may affect your rights or the successful completion of the sale. Contact Tetreault Law to discuss your Georgia real estate transaction and the legal guidance you may need before closing.
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