Title Reversion for Georgia Mortgages

Old security deeds (commonly referred to as mortgages) do not always get released or
canceled as they should. The lender may have failed to file the release, gone out of business, or
may have been purchased by another bank. These old loans can be very difficult to track down.

A security deed is a document conveying a security interest in the real estate to the lender as collateral for a debt. Prior to 1994, any interest conveyed to the lender in a security deed would revert back to the
borrowers 20 years after the maturity date on the Security Deed. If no maturity date was stated,
then the security interest would revert 20 years after the security deed was recorded.

After 1994, Georgia code 44-14-80 states that any interest conveyed in a security deed reverts
back to the borrower seven years after the maturity date, or seven years from the date of recording if no
maturity date is stated in the security deed.

This changes if the lender states in the security deed that it is intended to establish a perpetual
or indefinite security interest in the property. If this language is included in the security deed, the
title would still revert to the borrower seven years after the maturity date, OR 20 years from the date
of conveyance, whichever is later.

Most traditional residential security deeds mature in 30 years. For most loans, if more than seven
years have passed since the maturity date and the loan was recorded more than 20 years ago,
then title has reverted to the borrower and there is no need to get a release.

It is not uncommon for heirs to have to try and track down an old mortgage their parents paid in
full, but have no record of the full payment or release. This can take months to get corrected
without a loan number or something similar to go on.

Always keep your letter of release or document from the lender showing a loan is
paid in full. This will be a tremendous help to your closing attorney if a release was not properly
filed.


John C. Bennett is a real estate closing attorney and owner of Origin Title and Escrow, Inc..
Since 2003, Origin Title has handled real estate transactions – purchases, refinances, reverse
mortgages – quickly and professionally. There will be no surprises, nothing misunderstood. Title
searches are thorough and well-reasoned, to avoid unpleasant surprises later down the road.
Calculate your closing costs in Georgia or Florida using our calculator or contact Origin Title using the form provided.

Adding a Minor Child to a Real Estate Title

What are the issues with adding a minor child to a real estate title?  It seems like an easy way to let children inherit real estate.  

First, once on the title, it is very difficult to refinance or to convey the title out of the child’s name. Any deed signed by a minor is voidable, and parents may not sign on behalf of their children.  

To convey the title out of a child’s name, the court must appoint a conservator to represent the child’s best interests. It is often not in the child’s best interest to sell the house, refinance, or convey the title back to a parent.  

The only other option is to wait until the child is legally competent (18 years old in most states) and have the child sign a deed then.  

This is another reason to have a clear and concise will describing how you want your heirs to inherit your assets.  Adding children to the title can waste a lot of time and money that would be better spent making a proper estate plan instead. 


John C. Bennett is a real estate closing attorney and owner of Origin Title and Escrow, Inc.. Since 2003, Origin Title has handled real estate transactions – purchases, refinances, reverse mortgages – quickly and professionally. There will be no surprises, nothing misunderstood. Title searches are thorough and well-reasoned, to avoid unpleasant surprises later down the road. Calculate your closing costs in Georgia or Florida using our calculator or contact Origin Title using this form.

Adding Heirs To A Title is Not Always a Good Idea

In Georgia, property owners can either own real estate with another person as tenants in common, or as joint tenants with survivorship. Georgia does not have Tenancy by the entirety, although other states do.

With Tenants in common, if an owner passes away, that person’s heirs inherit their portion of the property. 

If they owned the property as Joint Tenants with the right of survivorship, the property passes to the surviving owner. This is great for married couples who want to leave the property to their spouse without going through probate.  It is not always the best tenancy if a person is on their second or third marriage.  

There are several issues with adding someone to a title as a substitute for probating an estate, though.

a. Any liens or judgments against that person will attach to the property. This includes past and any liens filed in the future.

b. Inheriting property instead of being added to the title actually has some tax benefits. Being added to a title as a joint tenant eliminates the tax benefits of inheriting real estate, and gifts are often taxable. 

c. Adding a child to a title is not always a good idea. Conveying property to a child under the age of 18 years old creates a whole list of problems, such as the inability to sign for loans and sale of the property. 

So be careful who you add to the title, and why. It is not always the best way to avoid probate. Probating an estate can have tax advantages, and is much easier with a will.


John C. Bennett is a real estate closing attorney and owner of Origin Title and Escrow, Inc.. Since 2003, Origin Title has handled real estate transactions – purchases, refinances, reverse mortgages – quickly and professionally. There will be no surprises, nothing misunderstood. Title searches are thorough and well-reasoned, to avoid unpleasant surprises later down the road. Calculate your closing costs in Georgia or Florida using our calculator or contact Origin Title using this form.