In transactions where the buyer will borrow money, you should expect at least 30-45 days as the minimum time needed to prepare for a closing. During this time, while the buyer and seller work to execute the conditions of the Purchase and Sale Agreement (inspections, loan applications, repairs, etc.), the closing attorney will be busy making sure that clear title exists to the property, that no liens exist and all recorded mortgages are known or satisfied. Additionally, the buyer must document that funds are on hand or obtain financing to purchase the property. Lenders typically have a list of attorneys they will allow to close transactions. This means that while the buyer may nominate the closing firm or attorney, the attorney works for the lender, not the buyer. When no lender is used, or the buyer hires an attorney, it is advisable for a seller to obtain representation on their own from a qualified real estate attorney to represent their legal interests in the transaction.
DEBITS AND CREDITS
Before closing, the attorney will prepare a statement of funds and expenses for each party to the transaction. This uniform document is known as a Settlement Statement and contains a detailed accounting of the entire financial transaction. In Georgia, the closing costs associated with the lender and loan typically fall on the buyer's side of the transaction unless a prior agreement has been made in the Purchase and Sale Agreement. Seller's side expenses typically include commissions and marketing expenses for the property, pro-rations and adjustments, payoff costs for first. second and other mortgages, and courier fees. The seller may also be asked to pay for a home warranty if included in the Purchase and Sale Agreement.
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