BRIEF DESCRIPTION OF THE CLOSING PROCESS
The process starts when we receive the contract and/or title order form.
We then assemble all the necessary information for the closing:
- Identify other preliminary info and contact necessary parties
- Run the title search
- Identify problems (loans not paid, liens, court judgments, etc.)
- Clear any title issues
- Issue a commitment to the lender
- Issue ICL (insured closing letter) - assurance from the title company to the lender that all lender requirements will be met by the closing attorney
- Get loan payoffs
- Determine taxes and divide them up
- Check water and sewer in certain counties
- Determine homeowner association requirements and divide them up
- Obtain the closing instructions from the lender – usually about 6 pages of fine print combining general lender requirements and financial information
- Prepare the closing statement and lender's closing package using all of the information obtained above
- Close the Sale
WHAT TO BRING AND DO
All parties to transaction must attend. (If a Power of Attorney is being used it must be approved by the lender and the closing attorney in advance and you must bring the original.)
A current valid photo ID (driver’s license or passport preferred).
MONEY, if required. We require a bank cashier’s check or completed wire transfer, unless other arrangements are made in advance. If you want to wire funds, tell us and we will send you wiring instructions. We do not accept a personal checks for any amount, and Georgia law absolutely prohibits accepting personal funds in excess of $5,000.00.
Anything else that the lender, mortgage broker, real estate agent or our office instructs you to bring. Don’t forget keys, garage and gate openers and other similar items. We recommend leaving appliance instructions, etc. in plain view in the home. If the contract requires it, bring a termite letter or bond, a home warranty or other documents.
If anything is missing or incomplete, the transaction will close in escrow if approved by the lender. This means that there is no deal until the incomplete items are completed as required by the escrow agreement.
TITLE INSURANCE
Most closing attorneys have their favorite horror stories about owners that don’t buy title insurance. We put it differently – all lenders require a lender’s title insurance policy, and the title insurance companies have lost money in Georgia in some recent years (meaning that they paid more in claims and administrative costs than they collected in premiums). These two facts should tell you pretty clearly whether or not you need an owner’s policy. Yes, we do have a complete title search done, but this alone does not protect you against a large number of common claims, many of which will not show up in the courthouse records.
WHO DO WE REPRESENT?
In Georgia, typically the closing attorney represents the lender.
However, we can and do often represent buyers as well. If you are a buyer and would like to retain our services for your closing, let us know as early prior to closing as possible. We will give you a representation letter and be responsible to you on three conditions: (1) you pay an extra representation fee of $100, (2) you buy an owner’s title policy, and (3) you acknowledge that, even though we will represent you, we must also represent the lender and must follow the lender’s closing instructions exactly. However, if we think that any of the lender’s requirements are abnormal or uncommon and contrary to your interests, we will tell you. Examples would be a pre-payment penalty on the loan or closing costs that make the loan a “high cost loan” under the Georgia Fair Lending Act. Of course, you can also have your own attorney represent you, and we welcome that as well.
We also represent sellers in negotiating short sales with their lenders. Attorney representation in these crucial negotiations is vital. Our expertise and automated system gives our seller clients a much higher chance of success in short sale scenarios. Please click the "No Charge Short Sale Assistance" link above for more indepth information about our new program for sellers and their listing agents.
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