I’M READY TO CLOSE, CAN YOU JUST MAIL ME THE DOCUMENTS?
As a law firm that offers closing on real property, we get this question a lot. “Can you mail me my closing documents and let me sign them and send them back to you?” The short answer, as is the case with many legal questions, is “maybe.”
Georgia is an attorney-present state. This means that the closing attorney must be present not only for the closing, but for all major steps in the closing process. Some judicial opinions from the Georgia Supreme Court have gone as far as to say this includes not just being present before the individuals when they are signing their legal documents, but they must also be physically present during the preparation of closing disclosures and settlement statements and even the preparation of the deed(s) themselves. Why? The Georgia Supreme Court has determined that these procedures and processes in the closing timeline are undoubtedly the practice of law and having anyone other than a licensed Georgia attorney in good standing perform them is to be viewed as ‘the unauthorized practice of law.’ Therefore, as the quickest summary is that mail away should not be allowed for Georgia real estate transactions.
But I’m out of state . . . am I just out of luck and going to have to come to your office?
Don’t worry just yet. There are a few options still available to you even if you are physically located outside of the state of Georgia:
You can arrange a closing date and time with the other party in the transaction and travel to the closing attorney’s office to complete the closing like “normal” in the attorney’s office. This option is absolutely always the most-preferred option to insure against fraud and wrongdoing.
You can arrange to go to an attorney closer to you in Georgia. The closing attorney will either send the closing documents to that attorney’s office by electronic submission or by mail. You will arrive at that attorney’s office and complete your documents there. The secondary attorney would then mail back all originals to the closing attorney for processing. This option will likely mean an increase in fees as that attorney will have to expend his or her time and resources to assist you in the closing process.
You can find an attorney in your area or state that also holds a license in good standing in the State of Georgia. The information about that attorney will need to be communicated to your closing attorney so the closing attorney can perform the necessary verifications of the out-of-state attorney’s license in Georgia. The remainder of the process, as well as considerations from number two above would also apply here.
You could select an individual local to the closing attorney to sign on your behalf. The closing attorney will prepare a Limited Power of Attorney which will name the individual who will be signing for you, limit the power to the purpose of closing the specific propertie(s) involved in the transaction, and set an expiration date for the Limited Power of Attorney. People electing this option will often ask their real estate agent, an old friend, or a neighbor in the community to serve in this capacity. Once prepared, the document will be sent to you to review and execute. It will be your responsibility to make sure the original is returned to the closing attorney prior to closing. Problem considerations here include: fees for the preparation and recording of the Limited Power of Attorney, the document getting “lost in the mail,” forgetting to mail the document to the closing attorney before closing, not mailing it in enough time to be received by closing, and/or the individual named not showing up to closing. While there are fees associated with this option, they are usually considerably less than seeking out another attorney.
Note: Many states allow the use of title companies for purposes of closing. However, if the title company does not have a Georgia-licensed attorney in good standing with the State Bar of Georgia as well as a notary public with a Georgia notary certificate, it will not meet the requirements for real estate transactions in Georgia.
What does an attorney do for you at closing? Let us walk you through it!
Having an experienced, knowledgeable, Georgia-licensed attorney in good standing with the State of Georgia in one of the largest transactions you will have in life will give you peace of mind and confidence in your investment. If you are looking to close on real estate in the State of Georgia, we are here to assist you, guide you through the process, and help you begin (or continue) building your legacy. If you’re ready to close, call us at 706-359-3332.