Closing Documents in Georgia

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What is a deed of conveyance?

A deed of conveyance transfers the property from seller to the buyer. These deeds can be in the form for general warranty deeds, limited warranty deeds and quitclaim deeds. These deeds should contain an accurate legal description of the real property. Additionally, in Georgia, a Transfer Declaration Form (PT61) should be completed and filed along with any deed of conveyance. Additionally, these deeds are most commonly filed with Office of the Clerk of Superior Court in the county where the property is located.

What is a security deed in Georgia?

In Georgia, a security deed can also be known as a Deed to Secure Debt. This document acts to secure the real property as collateral for the debt or mortgage, which had been financed to purchase the property. The security deed should have the same legal description for the real property, which is included in the deed of conveyance. The security deed must contain the amount of indebtedness secured by the real property and also, it must contain a power of sale clause for the lender in the event of a default. If the maturity of the security deed is 3 years or longer, then intangible tax should be paid to the tax commissioner for the county where the real property is located prior to the recording of the security deed. A rider may be accompany the Security Deed in cases where the property is a manufactured home, condominium, or is governed by a homeowner’s association.

What is the Note in Georgia?

The Note is basically a contract with Lender stating what is owed and the terms of its repayment. Unlike the security deed and deed of conveyance, the Note is not recorded. The Note should include the amount of the loan, the interest rate, the maturity date, any late payment charges, any right and/or charge for early pre-payment and the terms of repayment.

What Affidavits are generally made during a closing in Georgia?

Affidavits are sworn statements made by an individual based on his or her personal knowledge. The Seller generally signs an affidavit that the real property is sold free and clear of any adverse liens or claims while the Borrower generally signs an affidavit that he or she has not caused any liens to attach to the real property which would be superior to the lien which would attached with the security deed. The borrower also signs an affidavit referred to as a Name Affidavit that includes all names that the borrower is known by as pulled from his or her credit report. Additionally, a borrower will sign an Affidavit of Occupancy, which is a sworn statement that he or she intends to use the property as his or her primary residence.

What is the Acknowledgment and Waiver of Borrower’s Right in Georgia?

Generally, Note and Security Deeds give the lender the right to non-judicially foreclose on the Borrower in the event of default. By executing the Note and the Security Deed, the Borrower is waiving his or her right to a judicial review and determination of foreclosure by the lender in the event of default. The Acknowledgment and Waiver of Borrower’s Right confirms that the borrower understands that he or she has waived his or her right to judicial foreclosure.

What can you learn from the Truth in Lending Disclosure in Georgia?

Within three (3) days of your loan application, a buyer should receive the Truth in Lending disclosure. The Truth in Lending disclosure states the annual percentage rate also known as the APR, which shows the actual cost of the mortgage loan as a yearly rate. The APR includes of all of the costs reflected in the finance charge and will almost always be higher than your note interest rate. It will also reflect the finance charge which is the total cost for borrowing the money, which includes the principal and interest for the entire term of the loan, origination and any discount fees, and any private mortgage insurance (if required).

What is the Settlement Statement in Georgia?

The Settlement Statement is also known as the HUD-1. The closing statement is the financial balance sheet for the closing transaction. It should itemize all costs and credits and debits that are part of the closing transaction. To the parties involved, this is the most important document as it lists exactly what monies will be changing hands for the purchase of the property.

What is an Errors and Omissions Agreement in Georgia?

An Errors and Omissions Agreement, otherwise referred to as a compliance agreement, is a pledge by the borrower that they agreed to work with the lender in case any clerical errors or mistakes in the loan documents are needed to be corrected.