The Closing Process

All deeds require an accurate description of the real property being conveyed. Street addresses and Tax Parcel numbers can change, so they are not sufficient to describe real property on a deed. 

Each state may describe real estate a little differently. In Georgia, we have two main types of legal descriptions. The easy one is often called a ‘short form’ legal description, which simply lists the Land Lot, District, lot number, and a recorded plat map for a full description of the property.  Most residential properties in subdivisions have a short legal description. 

A second type of description is a ‘metes and bounds’ description of the property. The metes and bounds description will still include the Land Lot and District, but then go on to write out the description of the property instead of referring to a recorded plat. 

The ‘mete’” part is the description of the boundary lines, and often requires using math and geometry.  The boundary lines will be described by stating the direction and distance of a line or curve. For example, a line of North 89 degrees 1 minute 1 second East a distance of 50 feet, would describe a 50-foot line that is almost directly due East. Curves can get more complicated because they require the radius, chord, arc, direction, and distance of the curved line.  

The ‘bounds’ part is a monument or something that exists to physically show the boundary of the property, usually a road. Older legal descriptions use stones and trees as markers. Using trees and stones creates a lot of problems when trying to decipher a property line because trees are not permanent and stones can be removed.

Rural counties in Georgia will often refer to the ‘GMD’, which are general militia districts. The counties in Georgia were initially divided by these militia districts, with a captain for each district. A property’s GMD may still be used in certain legal descriptions today.

A deed will be invalid without a valid legal description. The most common mistake on a short-form description is listing the wrong lot number or wrong plat book reference.  With metes and bounds descriptions, there are a lot more chances to make a mistake. 

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.

Georgia House Bill 974 (updating OCGA §44-14-63) passed and will go into effect July 1, 2023.  Lenders may need to adjust their closing documents to make sure all the required information is listed on the first page of the security deed. (Security deeds are commonly referred to as mortgages). Sometimes the loan amount and the maturity date are in the body of the security deed, and difficult to find. This amended statute requires the following information to be listed on the first page of the document to be recorded:

1. The date of the document
2. The names of the signatories of the document
3. The grantee’s mailing address
4. Map and parcel ID, if applicable
5. The original loan amount or the amount of any outstanding principal and additional advance pursuant to a loan modification
6. The initial maturity date or dates for such debt
7.  The amount, if any, of the intangible recording tax imposed on such deed to secure debt
8. The amount, if any, of the intangible recording tax imposed for an additional advance pursuant to a security deed modification agreement of other additional advance secured by a security deed and
9. If no intangible tax is imposed, a citation to the authority providing for an exemption of such tax.

Clerks will reject the Security Deed if it does not include this information. 

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.

How do you decide if a property is a condominium or a townhome?  A property is not a condominium unless the developer or owner has filed a “Declaration of Condominium” in the real estate records.  The condominium will also need plans recorded identifying each unit.   

Townhomes will normally have a Declaration of Restrictions, Conditions, and Covenants for the development.  

While both the condominium and townhome development will have rules and restrictions for owners, the condominium will also have floor plans of the units recorded in the real estate records.   

Both will identify the property and list the rules for the development, architecture, and will often include parking spaces or anything else that is determined by the Home Owners Association (HOA) or Condominium Association. Both will also have a Common Area that is shared by all the owners of the units or townhomes. 

There are a wide variety of rules for both, and it is a good idea to read through the covenants and declarations before purchasing either one. Many condominiums will restrict the number of rentals allowed in the building, and some townhome neighborhoods are also adopting restrictions on rentals.  

The loan process is different for condominiums, especially if the buyer is applying for an FHA insured loan. For an FHA loan, it really matters how many owners in the building are in arrears on their condominium dues. If too many people are delinquent in their payments, the unit or building may not qualify for an FHA loan. The condominium must also have a certain percentage of owner-occupied units in the building to be approved by FHA.  

FHA requirements for condominiums were updated in September, 2022 to clarify and add structural inspections, insurance, and other requirements to qualify for an FHA loan.   

A person buying a townhome will have fee-simple ownership of the house and the land it sits on. A person buying a condominium will only own their unit and none of the land the building sits on. Lenders treat a townhouse just like any other single-family residence, while a condominium may require some extra work and review to be approved for a loan, especially an FHA loan. 

Buyers should know up front what type of property it is before making any offer.  

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.

During the state of emergency under pandemic precautions, we could notarize and witness someone signing documents over video.  The signor would still have to send the original documents back for us to sign as the witness and notary, though.  This worked well.  

For the past 2 years, there was proposed legislation to allow for Remote Online Notaries, or RON.  The statute was tabled in 2021 and voted down in 2022. 

Real estate attorneys are perceived as being against RON, but that’s not completely true.  Real estate attorneys want to make sure there is accountability in signing documents and handling a closing.  

At Origin Title, every closing document is signed and notarized properly, and there is an attorney present at the closing. Homeowners, loan officers, and real estate agents who close with us will always be able to find us.    

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.

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 “Title Company States” that do not require an attorney to close loans or purchases as long as the closing includes title insurance.  This rule is unique because title companies can only prepare closing documents when insuring titles.  So, in this case, even in Florida, a Florida attorney would be needed if there is an all cash purchase with no title insurance.  

Origin Title & Escrow can close loans and purchases for Florida properties as long as title insurance is involved. An “attorney state” requires an attorney licensed in that state to perform closings.  John C. Bennet is a licensed attorney in Georgia and a licensed title insurance agent in Florida.  Origin Title can perform closings in both Georgia and in Florida.  

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 the escrow process in California is different, it is not unusual for each state to have it’s own customs and processes for a closing.   Some states are ‘dry’, where everything is signed one day and funded on another day.  Some states are ‘wet’ where the signing and funding occur on the same day.   

Buyers from California are surprised that they must have their money wired into an escrow account on or before the closing date because, in Georgia, funds are dispersed the day of closing.   

Choose a closing attorney who understands the legal requirements to close a real estate purchase and who can explain it to the other parties involved in the transaction. 

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 closing attorney received the title search results at the last minute.  

You can avoid closing problems and delays by bringing on Origin Title & Escrow as the closing attorney. We use two companies that we’ve worked with for over 18 years. We typically get title searches back within a week, so that gives an extra two weeks to clear up any old title issues and get the home CLOSED!