Buyer Beware

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 the reason people get swamped with junk mail when they refinance or purchase a home. 

Have you ever bought something and then found the same item much cheaper soon after? When buying a home, DO NOT pay any company $89 to get a certified copy of your deed. This is a scam that fools people into paying for something they don’t need. You will receive the original deed at no extra cost. In Georgia, if there comes a time when you need a certified copy, you can get it at the courthouse for $2.50.  

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 no one maintained them. Each homeowner gained ownership of half of the alleyway, but subject to an easement right for each homeowner adjacentto the alleyway.

The alleyways can still be utilized, as long as they are in usable condition.  How long does it take for that pot hole to get fixed in front of your house?  If it’s in the alleyway, it’s never going to get fixed unless the owners do it themselves. 

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 Title and Escrow does NOT take any money that is not part of our fee.  If it’s listed as a recording fee on the closing statement and we don’t need it to record the deed, it’s returned to the borrower.  If the check never clears, the money then escheats to the state after 7 years.  Unfortunately, over the years, we have given the State of Georgia over $7,000 because borrowers have failed to deposit these small checks.

Hopefully this will soon come to an end because, going into effect January 1^st, 2020, recording a document in the State of Georgia will cost a flat fee of $25. It really does matter who the closing attorney is, and borrowers can usually choose their own. Why give away even $10 when it’s not necessary? 

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 file. However, during the 2019 Legislative session, House Bill 288 was passed which will provide flat recording fees in all counties in the State of Georgia.  Starting January 1st, 2020, recording any document in the real estate records will cost a flat $25, no matter how many pages.  The only exception is that the county will charge $25 for each release. If one affidavit or deed lists three documents to be released, then the recording fee is $75.  Avoid having your filings rejected because of the wrong filing fee. 

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 just follow the instructions, and their money is gone.

In 2018, the Federal Trade Commission reported that the three top states for wire fraud were Florida, Georgia and Nevada. The real estate closing attorney will make sure their systems are protected and that funds are transferred to the correct accounts.  Additionally, the attorney should provide wiring instructions early in the closing process, not a day or two before the closing.  Smart buyers should be suspicious of any request to change wiring instructions. They should also verify the information by phone before proceeding.

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 ownership interest cannot be separated. That matters if one spouse opens a credit card on their own, and amasses $50,000 in debt.  In Florida, a lien could not be filed against the house, because the debt did not apply to both spouses. In Georgia, a lien could attach to the property.

Loan officers who are licensed in Georgia and Florida will benefit from working with a closing attorney who is able to close loans in both states. 

 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 many steps that are legally required for the sale. 

An overconfident buyer may wrongly assume that all the forms they find on the internet are correct, and they may never realize there can be local requirements on the property that have to be met before a sale can occur. For example, in DeKalb County in metro Atlanta, all toilets in the home must be certified as low-flow before the new owner can get water service. Without the awareness of this requirement, a new homeowner might be faced with replacing every toilet in the home – and then getting the certificate of compliance – before the county will turn the water on. 

While it is possible to buy a house without a real estate agent, a closing attorney is required to make sure the transaction follows all the legal requirements of a sale.