Real estate and property law since 2003
News
Tax Aspects of Selling a Home
By John Bennett |
When selling a primary residence, some sellers pay no income tax on the gain. Paying taxes on the profit of a home depends on how long you owned and lived in the home, as well as how much money was made. If you lived in the home for at least two of the five years before…
Read More If you bought a house in 2020, there are two things that should be done
By John Bennett |
First, is to apply for homestead exemption if you moved into the home by January 1st and it’s considered your legal residence. This exemption can offer a significant break on property taxes. Second, is to keep your closing statement for preparing your tax return. In addition to Homestead exemptions, most counties have additional exemptions for people…
Read More Importance of Closing Before Year-End
By John Bennett |
January 1st is a very important date for new homeowners. All counties in Georgia provide a significant break on property taxes for people’s primary residence if they are the owner on record as of January 1st of that year. This is called the homestead tax exemption. In order to qualify for the exemption, a person must own…
Read More Wire Transfer Warning
By John Bennett |
The average home buyer or seller likely does not know about scams in the real estate world. The most common scam in real estate is wire fraud during closing. On instances of wire fraud i poses as an agent in order to divert closing funds to a fraudulent account. The Buyer would receive an e-mail…
Read More Lender vs Owner Title Insurance
By John Bennett |
Mortgage lenders require title insurance on every loan they close which protects them against problems with the title. However, this type of insurance does not protect the homeowner’s investment in the home. The owner’s policy is separate and typically issued when the property is purchased. Even Clark Howard, the thriftiest person in Georgia, recommends getting owner’s title…
Read More Enhanced Title Insurance
By John Bennett |
Few things are more important than protecting a home. For a minimal cost, homeowners have the ability to reduce their risk on one of the most significant investments they will make. There are two types of title insurance; owner and lender. Additionally, there are two types of owner policies and two types of lender policies. …
Read More Remote Closings in Georgia
By John Bennett |
Due to the pandemic, closings and signings have been facilitated via video. Georgia has put two separate emergency orders in to place to accomplish this. Georgia is an “attorney state”, meaning that an attorney is required to be present when signing legal documents such as a deed. The emergency order issued by the Supreme Court…
Read More Attorney States vs. Title Company States
By John Bennett |
Real estate closings differ from state to state. In “Attorney States”, a licensed attorney must be present at and have control over the closing. This includes reviewing the title search, preparing affidavits, receiving and disbursing all money. Several east coast states are attorney states: Georgia, South Carolina and North Carolina. Some states, such as Florida, are…
Read More Closing Terminology
By John Bennett |
When someone calls to start an escrow, we know where they’re calling from…California. Each state has different terminology when it comes to closings. In California, an escrow is opened where the title company holds all the documents and money until the disbursement date. The parties may sign the documents days before the funds are actually sent out. While…
Read More Refinancing and Intangible Tax
By John Bennett |
Most people buy a house two or three times in their lifetime, and perhaps refinance another couple of times. When refinancing, you may have the best loan in the world, but if it’s not closed or reviewed properly, you could lose hundreds or thousands of dollars. One area where borrowers can lose money is with…
Read More Can my spouse be on the title to the house, but not on the loan?
By John Bennett |
Yes! When you borrow money to buy a house, there are two separate and distinct promises you are making. First, the personal liability is the promise to personally pay back the loan. This is represented by the promissory note at closing. Lenders look at the credit rating of anyone signing the promissory note. Second, is the…
Read More Property Records Are Public in Georgia
By John Bennett |
In Georgia, all property records are public. Deeds, liens, mortgages and tax information are available to anyone who wants to pull them. With records being public, purchasers will know they are getting full ownership of the purchased property, and public records also let potential buyers know any restrictions that might be on the land. But…
Read More Buying real estate that is in bankruptcy
By John Bennett |
Homes purchased that are part of a bankruptcy can present unique challenges. There are also different types of bankruptcy which can make the transaction even more complex. Under Chapters 7 and 11, the trustee is the appointed seller of the home. In most other cases, the owner is the proper seller. In either case, a court order…
Read More Notarization during the COVID-19 Pandemic
By John Bennett |
Real estate transactions typically involve the execution and delivery of written documents that must be notarized in order to be recorded. In response to the COVID-19 pandemic, many states have put in place emergency measures to assist notaries in carrying out their duties. Georgia’s emergency order has been extended through July 12, which means Origin…
Read More Like it or not, real estate transactions are public record
By John Bennett |
When a person buys a house or refinances real estate, the warranty deed and mortgage are filed at the courthouse and become public record. Anyone can look up a deed or mortgage to find out how much their neighbor borrowed against their house, and even for how much it was purchased. These public records are…
Read More Origin Title’s Video Conferencing Resources
By John Bennett |
During the state of emergency, Origin Title and Escrow, Inc can provide notaries, witnesses, and be the closing attorney via video conferencing. As a buyer or seller, you can sign your closing documents with the notary, witness, and attorney present via video conferencing. Normally, the closing attorney also acts as the notary or witness. You will…
Read More Virtual Meetings
By John Bennett |
Who likes going to office meetings? Frequent meeting attendees hope there’s a spread of food and drinks; if there’s not, then they’d prefer the conversation be conducted via email. Real estate brokerages are shifting to virtual office spaces where there are no in-person meetings to attend. Some brokerages even have avatars for their agents to meet with…
Read More Online Shopping for a Closing Attorney?
By John Bennett |
97% of home-buyers begin their search for a house online. 74% of people looking for a mortgage now find it online. Less than 1% of people shop for their closing attorney online. This 1% is the main reason it’s important for closing attorneys to have a strong network of real estate agents that assist buyers. It’s also…
Read More Are Remote Closings Possible?
By John Bennett |
The Supreme Court order that was issued on March 27 concerning closing real estate transactions via video has been misinterpreted by some, so here are the facts. As of March 27, closing via video conference is possible where the attorney and the signing party can see and hear each other, and the signing party is…
Read More Preventing Title Issues on Closing Day
By John Bennett |
Some surprises are good. When it comes to closing on a home, a surprise is rarely a good thing. Many closing attorneys use big title companies for their title searches and these companies can take about three weeks to receive title results. When sellers learn about a title issue the day before closing, it’s because the…
Read More What rights do homeowners have to the alleyways behind their house?
By John Bennett |
Alleys are found mostly in the City of Atlanta and in older neighborhoods. In the 1980’s, the city of Atlanta decided that was too costly to maintain those alleys. They officially abandoned all alleyways, except for a few specific ones which have been historically maintained. This means that the other rights-of-way were still there, but…
Read More Making a Closing a Pleasant Experience
By John Bennett |
Spring is right around the corner, which means it is home buying time! New real estate agents come into the market frequently with dreams of working just a few hours a week while earning $100K a year. We all know that’s unrealistic. It takes years to build up a client base, and clients only come back when…
Read More A Prompt Filing Date
By John Bennett |
When a title search is completed, there is always an effective date on the title commitment. This is the date the county clerk has processed all of the deed filings. Believe it or not, the filing date is very important because whichever lien or security interest is filed first has priority. Being in first lien position…
Read More Importance of a Buyer’s Closing Attorney
By John Bennett |
Buying a home is, perhaps, the largest and most significant investment of your life. It also involves a unique set of property laws that can raise unexpected issues at closing. That’s why a buyer usually selects the attorney to handle the transaction. We have a client who is an investor that fixes up and sells…
Read More A Quick and Stress-free Closing
By John Bennett |
Some attorneys start doing real estate closings because it looks easy and can be profitable. At a closing, the attorney simply explains documents for the buyer and seller to sign, and often, it looks like they are just pointing to a signature line. But what if there is a title issue? The ‘point and sign’ attorney…
Read More Legal Property Descriptions
By John Bennett |
If you saw that a property is being purchased in the “21st District, 2nd Section of Cherokee county, starting at an apple tree, thence to a pine tree to line of Eli Wilbur, thence back to the road, up to a hickory tree, thence west 50 yards, thence south 80 yards, thence to E.G. Casey land, being…
Read More A spouse automatically inherits the house from their deceased spouse, right?
By John Bennett |
The answer is no. It is not automatic and surviving spouses can be in a bind if they aren’t prepared. Ideally, spouses are listed as “joint tenants with right of survivorship” on the vesting deed. If this is the case, then the surviving spouse automatically becomes the owner of the property. This is also true for any co-owners of…
Read More Heir to a Reverse Mortgage
By John Bennett |
When a person passes away, the heirs must decide if they want to sell the house or convey it to an heir. With a regular mortgage, heirs have three options: Keep paying the mortgage of the deceased person until an heir assumes the loan Sell the house to a third person Let the house go…
Read More Sometimes Foreclosure is Exactly What You Want
By John Bennett |
Regular mortgages require the borrower to be personally responsible for the note. If the borrower is in default, the bank will foreclose on the property and sell it to recoup the loan amount. If the bank sells the house for less than the amount due on the loan, the bank can file for a deficiency against the…
Read More Recording Fee Overages
By John Bennett |
When you receive a small check for $2.00 or less in the mail, do you always deposit it? Or do you throw it away? Most closing attorneys have borrowers sign a statement at closing that allows the attorney to keep any overage for recording fees. This could give an incentive to over-estimate recording costs. Origin…
Read More Changes to Recording Fees in the State of Georgia
By John Bennett |
Things don’t often change with real estate recordings. In fact, it’s been over 20 years since recording fees changed in Georgia. But times are changing and Origin Title and Escrow is prepared before they happen. Currently, one- or two-page deeds cost $10 or $12, mortgages cost about $60 to record and liens are about $10 to…
Read More Don’t Be Fooled by Last Minute Changes
By John Bennett |
Wire fraud is a real – and growing – danger for individuals who are buying homes. In 2018, fraudulent wire transfers stole $423 million from US consumers. The scammer’s favorite tactic involves sending an email to the buyer, telling them to use the new wiring instructions enclosed. Buyers often don’t think to verify the information, they…
Read More Tenancy Status Varies by State
By John Bennett |
In Georgia, people who buy homes together typically choose to declare joint tenancy with right of survivorship. This status guarantees that upon the death of one owner, their ownership interest immediate transfers to the survivor, without the need for probate. In Florida, homeowners can choose to declare tenancy by the entirety. In this circumstance, the…
Read More Have Refi? Will Travel.
By John Bennett |
Everyone has heard of the real estate transaction that blows up at the closing table. The reasons vary widely, but in our office about 95% of all purchase transactions close. With purchases, both the buyer and the seller are typically very motivated to see the sale through, so problems that arise are taken care of, so…
Read More Who holds the earnest money in a For-Sale-By-Owner transaction?
By John Bennett |
When a buyer enters into an agreement to purchase a home, the sales contract specifies the amount of earnest money paid and who will hold said earnest money. Should the seller be the person designated to hold the earnest money? It is more prudent to have a real estate agent or closing attorney hold the earnest…
Read More Remember the movie Brazil?
By John Bennett |
The rogue handyman, Harry Tuttle, played by Robert DeNiro, didn’t follow the rules because he hated the paperwork. The paperwork found him on the street one day and he eventually disappeared in the mass of papers. People selling their house without an agent can feel as if they are being buried by paperwork, but the biggest…
Read More When there’s no real estate agent, how does a buyer begin the buying process?
By John Bennett |
Once the buyer has decided on the house of their dreams, they need to make an offer to the seller. An offer is simply a sales contract signed by the buyer and sent to the seller. The contract will give the seller a set number of days to respond by agreeing to the contract, or making a…
Read More Understanding regulations before a home purchase
By John Bennett |
A home buyer can decide to undertake the purchase without the benefit of a real estate agent, but if they do, they take on the responsibility for understanding the local and federal regulations that will apply to their transaction. While everyone is most focused on the money that is changing hands, that’s just one of…
Read More Is it a mistake to do a deal when the property is “for sale by owner”?
By John Bennett |
We don’t recommend it, but it is possible to buy and sell a house without a real estate agent. Even without an agent, a closing attorney is required to complete the sale. The closing attorney will draft and review the sales contract and make sure the transfer of ownership is handled correctly. Often a person…
Read More A 10-DAY WINDOW FOR COMMERCIAL WATER BILLS
By John Bennett |
Restaurants are sure to need water service. When a restaurant owner rents or buys real estate, they may inherit the past due water bill for the property. A commercial water bill can be high — $10,000 to $20,000 is common. Even if the bill is technically owed by the previous owner or tenant, the county…
Read More WHEN CAN WATER GET IN THE WAY OF A COMMERCIAL REAL ESTATE CLOSING?
By John Bennett |
When it comes to potential surprises at the closing table, water bills are worse than unexpected fees because they automatically become liens on the property. Commercial and residential water bills are treated very differently. For residential property, if the water bill is in the owner’s name then it becomes a lien on the property. For…
Read More WHAT IF THE SELLER’S MORTGAGE ISN’T PAID & CLOSED WHEN YOU BUY A HOUSE?
By John Bennett |
Imagine this: a couple buys a house in September, 2016. Unbeknownst to them, the seller opened an equity line of credit using the house as collateral in May. The title search was performed the buyer’s chosen closing attorney on September 20, perfectly in line with the usual process. The lender didn’t file the equity line…
Read More HOA FEES DISCLOSED COMPLETELY, OR ELSE SELLER PAYS
By John Bennett |
In 2019, the Georgia Association of Realtors took steps to make sure that all Homeowner Association fees are fully disclosed to the buyer. The contract states that any HOA fee that isn’t disclosed properly will be paid by the seller. This keeps the buyer from being surprised at closing with unexpected fees. HOA management companies…
Read More MAKING SURE THERE ARE NO SURPRISES ON MOVE-IN DAY
By John Bennett |
When a prospective buyer sees a home with a luxury brand French-door refrigerator in the kitchen and the seller’s disclosure indicates the refrigerator stays with the home, said buyer understandably assumes that nice refrigerator is part of the purchase. Sadly, some unscrupulous sellers took advantage of the “loophole” in the seller’s disclosure, and substituted another…
Read More PAYING EARNEST MONEY WITHOUT A CHECK
By John Bennett |
ACH (Automatic Clearing House) transfers push money from one bank account to another, and it can go two ways. An ACH transfer can send money to an account and it can pull money out of an account. A wire transfer sends funds from one account to another, but it is always a one-way transaction. It…
Read More WHAT IS AN IOLTA ACCOUNT?
By John Bennett |
Real estate attorneys have a separate IOLTA escrow account to receive and disburse all funds involved with a real estate closing. IOLTA stands for Interest on Lawyers Trust Account and it means that the money in that account does not belong to the attorney. Interest earned on the account also does not belong to the…
Read More DO ESTATE ATTORNEYS NEED TO DO TITLE SEARCHES?
By John Bennett |
Estate attorneys often try to prepare deeds for their client, and it rarely turns out well. In our office, we often see Executor’s Deeds, Quitclaim Deeds, or Administrator’s deeds on record captioned with this statement: “Estate Attorney prepared the deed without a title search”. While recording a deed without a title search will save their…
Read More WHO PAYS PROPERTY TAXES WHEN A PROPERTY IS SOLD IN GEORGIA?
By John Bennett |
Each state does property taxes a little differently. Some states don’t send a property tax bill until after the year is completely over. In Georgia, the 2018 property tax bill covers the time from January 1, 2018 through December 31, 2018. If the property sale closes before the tax bill is mailed, the seller pays…
Read More SUPER LIENS OUTLIVE FORECLOSURES
By John Bennett |
Unpaid real estate property taxes never get “forgiven” or wiped out in a foreclosure. They are super-liens that always have priority and stay attached to the property, no matter what. In some jurisdictions in Georgia, water bills in the name of the property owner enjoy the same super-lien priority as property taxes. If a buyer…
Read More PAYING OFF YOUR MORTGAGE EARLY MAKES YOUR APR GO UP
By John Bennett |
The annual percentage rate, or APR, is the total cost of borrowing money over the full term of the loan, expressed as a yearly number. You’ll find it on page 5 of the closing disclosure, with the proviso that “this is not your interest rate.” The purpose of the APR is to make it easier…
Read More DO CLOSING ATTORNEYS CHARGE JUNK FEES?
By John Bennett |
Sadly, yes – some closing attorneys do add what we would consider “junk fees” to the costs of closing a real estate loan. We worked with a client who was the seller in the transaction and used the closing attorney the buyer had stipulated in the sales contract. That attorney added a $250 charge to…
Read More DOES TITLE INSURANCE COVER THE GAP BETWEEN THE TIME OF CLOSING AND THE RECORDING OF THE PAPERWORK?
By John Bennett |
Yes, title insurance covers liens, mortgages, or other claims filed in the public records against the property prior to the closing. Here are two examples: A seller took out a Home Equity Line in July. The lender did not file the Security Deed/Mortgage until October 10th. The seller sold the property on October 14th. The…
Read More WITH A REVERSE MORTGAGE, CAN I LOSE MY HOUSE IF THE LENDER GOES UNDER?
By John Bennett |
When a borrower seeks a reverse mortgage, they are still getting a loan that uses the house as collateral. Instead of making payments toward paying off the loan, they receive distributions (like a line of credit) from the lender. If a lender goes out of business and is unable to service the loan – and…
Read More ARE PROPERTY TAXES PAID FROM AN ESCROW ACCOUNT WITH A REVERSE MORTGAGE?
By John Bennett |
Reverse mortgage loans do not require an escrow account, because the borrower receives money, rather than making payments. Since conventional mortgages are usually set up to include property tax and homeowner’s insurance, how does the reverse mortgage loan holder pay for those elements? The borrower acquires and pays for insurance independently, and pays taxes directly…
Read More CAN REVERSE MORTGAGE FUNDS BE USED TO FUND ANOTHER INVESTMENT?
By John Bennett |
A reverse mortgage allows the 62+ year-old homeowner to refinance their home and receive the equity as a line of credit or a payout directly to them. Its purpose is to give seniors a chance to use the equity in their homes to help with living expenses, and it closely resembles a home-equity loan. And…
Read More GEORGIA DEPARTMENT OF REVENUE LIENS
By John Bennett |
In 2017, the Georgia legislature passed a law changing how we searched liens filed by the Georgia Department of Revenue. The law initially required a ‘clearance letter’ from the Georgia Department of Revenue before any deed could be filed. Thankfully this was repealed and replaced in 2018. The GSCCCA is an on-line statewide searchable database for lien and deed…
Read More LIENS NOT RECORDED AT THE COURTHOUSE
By John Bennett |
We perform a title search for every refinance or purchase closing. There was a time when someone searching titles could get all the needed information at the courthouse. That time has passed. Deeds, mortgages, and most liens are still recorded in the real estate records at the courthouse, but several other items also need to…
Read More PROTECT YOUR MONEY FROM WIRE FRAUD SCHEMES DURING CLOSING
By John Bennett |
Sending an e-mail is like mailing a post card. Unless it is encrypted, there are ways other people can read the message and see what is in it. Even though e-mail is easy, it also has its dangers. Anyone in the world can try to read it, and even change what was written. Criminals who…
Read More REVERSE MORTGAGE BASICS
By John Bennett |
Reverse mortgages have been around since the late 1980’s. Almost all reverse mortgages are FHA insured and follow strict guidelines. The program was designed to keep seniors in their house as long as possible and to make the equity in the house available without selling it. There is a lot of mis-information on reverse mortgages.…
Read More Origin Title: Approved Attorney
These are a few of the more than 40 lenders who have approved Origin Title for residential loan closings on their behalf.
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Origin Title ~ Body of Work
Since 2003, John C. Bennett has performed thousands of closings.
Updated 12/17/2020