Role of Real Estate Closing Attorney in Atlanta
Monday July, 2014 01:08 AM
This article summarizes the role of the Atlanta closing attorney in a residential closing.
Role of Real Estate Closing Attorney in Atlanta
Buyers and sellers frequently ask what a real estate closing attorney does other than perform the closing ceremony. The closing attorney performs many time consuming tasks behind the scenes while preparing a transaction from escrow opening to closing. The following is a synopsis of the attorneys role in a residential closing.
When the title order arrives from the lender, the attorney first performs a tax search, which discloses the real estate taxes and other municipal liens on the property. Mortgage payoff and community association information is also collected so account letters and payments can be ordered closer to the closing date.
The closing attorney is responsible for examining the title to the property. For purchases, title is researched going back forty to fifty years. The closing attorney carefully reviews the examiner’s report to ensure there are no title defects. If there are any issues, the attorney will work with all parties to resolve them. Some title defects are difficult or time consuming to resolve. Minor defects may be passed on to the new purchaser, but most often the buyer is protected under the new owner’s title policy.
The closing attorney also prepares title commitments and issues policies for both the owner and lender. Although in Georgia, an owner’s policy is technically an option, buyers should always obtain title insurance to protect against hidden title defects that may become apparent in future closings.
The attorney will coordinate for the preparation and delivery of the lender’s closing documents which include closing instructions, mortgage instrument, promissory note, truth in lending disclosures, and approval of the closing statement prepared by the attorney.
Monetary items the attorney is responsible for include payment and disbursement of:
• loan payoffs and other liens against the property
• home owner association dues
• real estate taxes and government utilities (if any)
• realtor commissions
• lender and title fees
• mortgage escrow account
• hazard insurance premiums
• title premiums
• prepaid interest
• transfer taxes
• recording fees
• sales proceeds
In Georgia, the buyer and seller typically come to the closing ceremony together held at the attorney’s office. The attorney will explain the numerous loan and closing documents signed by buyer and seller, collect and distributes all funds and ensure that the closing is conducted in compliance with the laws of the State of Georgia and federal law. Outside of the closing, the attorney finalizes the funding, then records the deed, mortgage and other recordable instruments and issues final title policies.
CHRIS PAHL
Real Estate Attorney
945 E Paces Ferry Rd
Suite 2250
Atlanta, GA 30326
Tel. +1 (678) 448-4148
web: GeorgiaTitle.com
contact: PaperAndDirt.com 