Seller Closing FAQs

In a typical real estate transaction or loan closing, the closing attorney performs the following services:

• Researches the title to the property to verify the record owner of the property, to verify that the owner has marketable title and to identify the lienholders who will need to be paid off at closing to transfer marketable title to a buyer and to properly secure any new loan to be secured by the property.
• Obtains payoff information for existing loans and other liens.
• Obtains taxes and homeowner association dues (if any) which will need to be paid and or prorated at the time of closing.
• Provides the lender with a title commitment and other information that the lender needs to complete the loan and generate a loan package.
• Prepares a settlement statement for the lender and the Realtors to approve.
• Schedules a closing date and time to complete the transaction according to the terms of the sales contract and the lender's closing instructions.
• Conducts a closing where the buyer (or borrower) and the seller will sign all documents necessary to complete the transaction.
• Disburses all funds in accordance with the settlement statement.
• Records deeds, deeds to secure debt, and other documents with the Clerk of the Superior Court for the County in which the property is located.
• Verifies loans and other liens which were paid off at closing are properly released.
• Returns final recorded documents to the buyer and lender.

The seller cannot require the buyer to use their preferred closing attorney. However, the closing attorney is designated in the sales contract and can be negotiated by the parties. If you would prefer to use a firm of your choice, you can certainly request that during the negotiations of the contract and ask that the firm you prefer be designated as the closing attorney in the purchase and sale agreement documents.

It is recommended to use a real estate attorney for your real estate closing who has extensive knowledge and experience with real estate law and their office location being convenient and flexible to where you work and/or live is also key to consider. Nathan Fitts & Team are happy to make some recommendations of real estate attorneys if you don't have a preferred relationship with an attorney. However, please know that Nathan Fitts & Team comply with all RESPA laws and these are recommendations only. The final decision is yours and you have the freedom to choose any vendor of your choice. Nathan Fitts & Team LLC gets no kickbacks, monetary incentive, or benefits from any vendors.

In Georgia, in a real estate transaction where the buyer is financing a portion of the purchase price, or in a loan transaction where there is no seller, the closing attorney represents the lender, regardless of who is paying the attorney's fee. If the buyer is paying cash, and is not financing any portion of the purchase price, the closing attorney will generally represent the buyer, regardless of who is paying the fee. The closing attorney should always identify, in writing, who the attorney represents in the transaction.

A government-issued photo ID. We are required to verify your identity at the time of closing. A valid driver's license or passport are acceptable forms of identification, as long as it includes a photograph.

Checkbook. Whether you are the buyer or the seller, items sometime arise at the last minute, and you may need to write a check. For example, there may be a recording fee that we had not anticipated, an agreed fee that was not provided to our office, or a last minute repair that is added to the final settlement statement.

Keys, garage door openers, gate passes, etc. The seller should bring any keys, garage door openers, gate passes, or other similar items the buyer will need to take possession of the property.

Generally, a real estate closing will last about 1 hour.

All real estate transactions involving a buyer and seller will have a settlement statement showing the funds paid by the buyer and the funds due to the seller, along with any disbursements to be made to the seller's mortgage lender, the real estate agent, and other vendors. In almost all instances, the settlement statement will be on a HUD-1 form. The HUD-1 (or HUD as it is often called) is a 3 page document developed by the U.S. Department of Housing and Urban Development to use is federally regulated home mortgages.

For most residential loans originating after October 3, 2015, the HUD-1 Settlement Statement will be replaced by the new "Closing Disclosure." This new form is five (5) pages, and includes information formerly provided to the buyer/borrower and seller on the HUD1 and Truth-in-lending (TIL). This new form does not completely replace the settlement statement, as the buyer/borrower and seller will still sign a settlement statement (similar in form to the old HUD-1) showing and authorizing disbursements made by the closing attorney.

The seller's name will be listed the same as on the deed when the seller acquired the property. If the seller's name has changed (because of marriage or divorce), the seller's name may include both the previous and new name as an n/k/a (now known as) or f/k/a (formerly known as). If the seller goes by more than one name, the names may be separated by an a/k/a (also known as).

The seller will convey title to the buyer by a deed. There are various types of deeds, but the most common type of deed used in a residential real estate transaction is the warranty deed. The type of deed the seller will provide is a matter of contract. The Georgia Association of Realtors (GAR) standard Purchase and Sale Agreement is the most common residential contract in Georgia, and is used by virtually every Realtor. Prior to 2104, the GAR form required the seller convey title by "General Warranty Deed." A general warranty deed contains warranties of title from the seller to the buyer, that the seller is seized and possessed of good and marketable title, and will defend the title against all claims.

Beginning in 2014, the new GAR form requires the use of a "Limited Warranty Deed." A limited warranty deed limits the warranties of good and marketable title to those persons claiming by and through the seller. For most people, this will make no difference. The buyer gets the same rights to a property under a limited warranty deed as they would under a general warranty deed. However, limited warranty deeds do limit the seller's exposure to liability for claims against the title. For that reason, now more than ever, buyers will need an owner's title insurance policy.