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Closings FAQs

Should I have my own attorney represent me at closing?

In Georgia, the closing attorney represents the lender.  The work that the closing attorney is asked by the lender to perform through the closing – transferring title, setting up the lien against the property for the lender, collecting and disbursing funds as required by the terms of the transaction – is the essential work that the parties also seek to accomplish.  For this reason, most buyers and sellers rely on the competence and professionalism of the closing attorney in executing the closing in lieu of hiring their own lawyers.  Even so, buyers and sellers always have the option of hiring a lawyer to personally represent them during the closing process.  

What should I bring with me to the closing?

Buyers:
By the time of closing, buyers will already have provided lots of information to the lender and the closing attorney by telephone, fax and email.  Buyers are responsible for bringing to closing anything that has been specially requested of them by the lender or closing attorney (such as original copies of bank statements or insurance), plus a picture ID and sufficient funds to close.  

Sellers:
Prior to closing, Sellers will be asked to provide social security number, forwarding address and payoff information about any mortgages that must be paid off through closing.  At times, issues arise due to the title examination that Seller may need to help resolve.  At closing, Seller must bring picture ID and any documentation required by the contract or requested by the closing attorney (such an original Power of Attorney).  Seller should bring keys and other entry cards or devices, including garage door openers, to give to Buyer at closing.  Sellers, or their real estate agents, are often responsible for bringing original termite letters to closing.  Per the contract, a Seller may also provide a home warranty at closing.  Beyond that, many sellers opt to bring information about the homeowners’ association and the property’s appliances and systems, or they may leave information about these things at the property for Buyer to review later.

Can I write a personal check for the funds needed to close?

To control risk, most closing attorneys will accept only a very limited amount of money in the form of a personal check.  And, Georgia law absolutely prohibits closing attorneys from taking more than $5000 in personal funds.  Therefore, the lender will let you know – and the closing attorney will reinforce  it – that you must get either a cashier’s or certified check for the amount needed to close.  Most people have the check made payable to oneself.  If you aren’t told an exact amount prior to closing, the best practice is to get a cashier’s or certified check in the estimated amount needed, then bring your personal checkbook to closing to make up the relatively small difference.    If your cashier’s or certified check amount is greater than the amount needed to close, you will receive a refund at closing.

What types of documents do buyers have to sign?

Most buyers obtain loans to purchase property and have to sign a substantial number of loan documents at closing.  The good news is that virtually all these documents are on forms that are universally used – some are mandated by state and federal law while others are a product of lending requirements and customs.  And, they tend to be straightforward and easily understandable, especially with your closing attorney’s explanations of them.

What types of documents do sellers have to sign?

Sellers can anticipate signing relatively few documents at closing.   Someone selling property can count on signing the Settlement Statement and other documents pertaining to the property’s title and to tax matters. 

How long will the closing last?

Most of the hard work is done prior to closing – finding a property, negotiating a contract and fulfilling contract obligations such as obtaining a loan.   As a result, the closing itself is fairly easy.  Most closings are finished within an hour and some in much less time than that.  The duration of closing is largely dictated by the number of documents that the lender requires its borrower to sign and the amount of discussion the parties wish to engage in.  Occasionally, there is a problem of some sort with the loan or with an unresolved contract issue, in which case the closing can take longer. 

Will I be given dollar figures in advance of closing?

Parties often receive figures prior to closing in the form of an advance HUD-1 Settlement Statement.   The lender and closing attorney prefer that the parties review the HUD-1 well in advance of closing.  Because preparation of the HUD-1 is dependent on a lot of detailed information being finalized and verified by both the lender and closing attorney, sometimes there is not enough time for a thorough review of the HUD-1 prior to closing.  When that happens, the agent and lender will assist the buyer by estimating the amount needed to close, and the listing agent will assist the seller by estimating sale proceeds.  

 Should buyers purchase owner’s title insurance?

Attorneys and other real estate professionals recommend that buyers purchase owner’s title insurance.  An owner’s title insurance policy protects the property owner by paying loss that arises due to covered title issues and  by paying costs and fees if title needs to be defended against covered claims.  While the closing attorney will do an expert title examination, there are many undetectable title issues that can cause financial loss and heartache.  Today, the best title insurance policy available on the market is the “enhanced” policy with greatly expanded coverage over the standard owner’s title insurance policy.

All lenders require that the closing costs for the loan include a title insurance policy to protect them against any such title claims.  Property owners, though, are not protected by the lender’s policy; they have the option at closing of buying an owner’s title insurance policy that will give them the same kind of protection.  Most buyers purchase owner’s title insurance; the one-time premium in Georgia is quite reasonable and buys a lot of security in addition to practical coverage against loss and costs due to title claims that are an unwelcome risk of property ownership.