December 27, 2014 13:08
HUD-1 Settlement Form replaced by Closing Disclosure in 2015 Read More...Tags: Closing Disclosure, HUD-1
October 20, 2014 12:00
Should You Use RocketLawyer or LegalZoom?
This morning I came across a great article written by lawyer Reba Kennedy on the subject of using legal form document companies. Reba discusses the potential cost savings from buying legal forms instead of just hiring an attorney. She also warns that the risks may not outweigh the benefits. Here is my take from the perspective of a real estate attorney.
I think there is a fair argument in favor of accessible legal services. Since quality legal services are rarely inexpensive, the online form companies such as LegalZoom and RocketLawyer have filled a vacant niche. However, as with any product or service, clients are happiest when their expectations are met. Unfortunately, bad results are usually not apparent until it’s too late. Using an online legal forms service may give the perception that a particular form is legally appropriate for a given circumstance or situation, when it is not.
LegalZoom's Deed Transfer Service web page, for example, does not mention that the type of deed used can have serious legal consequences in various ways. The layperson may be unwittingly creating title problems, sabotaging an existing title insurance policy or failing to pay required taxes due on the transfer. Furthermore, no conveyance should ever take place without a consideration of tenancy, which determines how the property is handled should an owner pass away.
When things matter I recommend using a licensed real estate attorney. And real estate matters too much to leave to a cheap, online form. When problems arise, that form could be a very expensive piece of paper.
To assist Georgia residents in conveyances outside of closing, Georgia Title & Escrow Company has created a new portal. This system is designed to have the flexible advantages of a web based service (credit cards are even accepted), but with the benefit of a property lawyer overseeing the process. Check it out at Rocket-Zoom.com.CHRIS PAHL
Real Estate Attorney
3575 Piedmont Road NE
Building 15, Suite 120
Atlanta, GA 30305
Tel. +1 (404) 476-3736
email: chris@GeorgiaTitle.com
web: GeorgiaTitle.com | GetMyGFE.com*Here is the link to Reba’s original blog posting:
http://everydaysimplicity.blogspot.com/2008/08/should-you-use-legalzoom-or.html.
*Here is the link to my original reply post:
https://plus.google.com/104156028563033179675/posts/1ukTNx9snox
Tags: LegalZoom, Rocket Lawyer, Georgia Bar
July 25, 2014 18:57
Q: How to Choose a Closing Attorney?
If you are in the market to buy or sell a home, or refinance your existing mortgage, you may be wondering how to choose a closing attorney...and have the best, most outrageous closing experience possible. Here are a few tips.
- Take Your Choice of Closing Attorney Seriously. Choosing the best closing experience is just as important as selecting the right mortgage lender or real estate agent. Never leave your decision up to someone else.
- Stay Involved in the Process. I have been handling real estate transactions since 1997 and a huge observation I have made is that the most satisfied clients remain active participants during the entire closing and escrow period. I would estimate that about 95% of a real estate attorney’s work is done outside of the closing ceremony. Having a continuing dialog with the closing firm ensures that expectations will be met and that there will be no hidden surprises at the closing table.
- Choose a Decision Maker for the Firm. It is not only important to work with a decision maker for the closing firm, but also important to make sure the same professional will handle your actual closing. Set your expectations up front with your closing attorney. Do you want to risk a closing situation and where you are put “on hold” until someone more senior is available to handle the matter?
- Work with a Seasoned Professional. It takes years of practice to hone the necessary skills to effectively deal with the myriad of issues that arise throughout the escrow period. Real estate transactions are complicated, highly orchestrated events. Your best selection is an attorney who has handled thousands of closings.
- Avoid Paid Referrals. If a real estate professional refers a particular firm, ask whether there is any affiliated business arrangement or marketing alliance between the two companies. If there is, ask for a second referral. A majority of consumers believe there is a conflict of interest when a real estate professional directly or indirectly accepts compensation for a referral. Since most professionals would probably not even consider their referral partner if it were not for the kickback, neither should you.
CHRIS PAHL
Real Estate Attorney
3575 Piedmont Road NE
Building 15, Suite 120
Atlanta, GA 30305
Tel. +1 (404) 476-3736
email: chris@GeorgiaTitle.com
web: GeorgiaTitle.com | GetMyGFE.com
Tags: Georgia Association of Realtors
July 15, 2014 01:09
Due Diligence Period in Georgia Real Estate Contract
CHRIS PAHL
Real Estate Attorney
3575 Piedmont Road NE
Suite 120
Atlanta, GA 30305
Tel. +1 (404) 476-3736
email: chris@GeorgiaTitle.com
web: GeorgiaTitle.com | GetMyGFE.com
Tags: Due Diligence Period
July 12, 2014 05:14
A summary of Georgia Good Funds Law. Read More...Tags: Cash, Good Funds Law, Cash Closings
June 01, 2014 11:54
CPFB consent order fining Alabama realtor $500,000 provides important legal guidance for affiliated business arrangements.
Read More...Tags: RESPA Violations, Affiliated Business Arrangements, CFPB, RESPA, Title Companies, Affiliated Business Arrangements
February 09, 2014 10:43
This article discusses a few legal considerations involved in constructing additions to residential property for purposes of occupancy by relatives or formal lease arrangements.
Read More...Tags: Residential Property, Construction, Permitting, Additions, Construction, Dwellings, Homeowners, Dwelling Unit, Leasing
December 01, 2013 15:52
Electronic signatures a legally valid means of binding parties to contracts under Federal and Georgia State law.
Read More...Tags: Electronic Signatures, Electronic Signing, Contract Law
November 07, 2013 18:49
When a Member Inadvertently Binds the LLC and How to Avoid (Georgia)
The overriding purpose for forming a limited liability company (“LLC”) is to limit the individual liability of its members. But sometimes a member may act in such a way that binds the whole company, even though the act may be outside of his authority and inconsistent with the rules of the organization. When this happens, a member may be liable to the other members for the wrongdoing, but the company remains on the hook!
A review of the Georgia Code states, “the act of any member, including, but not limited to, the execution in the name of the limited liability company of any instrument for apparently carrying on in the usual way the business and affairs of the limited liability company of which he or she is a member, binds the limited liability company . . .” (O.C.G.A. § 14-11-301(a)). Translated into English, this means that by merely signing an agreement in the company’s name, an individual member may create a binding obligation of the company. At the end of the day, the other members may have a private claim against the member who acted wrongfully, but the organization is still bound.
However, it is possible to prevent an LLC from being bound by the apparent authority of its members. Under Georgia law, “If the articles of organization provide that management of the limited liability company is vested in a manager or managers . . . No member, acting solely in the capacity as a member, is an agent of the limited liability company . . .” (O.C.G.A. 14-11-301(b),(b)(1)). In order to benefit from this statutory presumption and protection, the company would need to include as a provision in its Articles of Organization, that “management of the Company is vested in one (1) or more Managers.” Without this specification in the articles, a company bears the risk of its members inadvertently binding the LLC. Additionally, the operating agreement would need to be crafted to include the responsibilities and duties of a manager designated to carry out the acts of the company.
Is it time for a tune up or review of your Articles of Organization and other company documents? At Redmond Law Group, our corporate practice includes entity formations as well as changes to your organizational structure or documents. If you have questions with regard to formation or to evaluate an existing company, please contact us.
CHRIS PAHL
Real Estate Attorney
3575 Piedmont Road NE
Building 15, Suite 120
Atlanta, GA 30305
Tel. +1 (404) 476-3736
email: chris@GeorgiaTitle.com
web: GeorgiaTitle.com | GetMyGFE.com
Tags: LLC, Limited Liability Company, Corporate Law