Buying a Home/Property in Georgia

BUYING A HOME IN GEORGIA

Real Estate laws vary from state to state so it is important you know what you will be facing when you purchase property in Georgia. I’ve tried to lay out the procedure we will be following to complete your home purchase.

• TIME: It typically takes 3-6 weeks from accepted contract to closing. Depends on lender.
• REPRESENTATION: By Georgia law, the seller is the party under contract and paying the selling commission, therefore must be represented by all agents. However, a buyer can be represented if they sign what is called a “Buyer’s Agency Agreement”. This allows an agent to fully represent the buyer even though the seller is still paying the selling commission. This is the only way I work with buyers since it cost the buyer nothing to be represented.
• INSPECTIONS: In Georgia, inspections are done after the contract is accepted, and the contract is contingent upon satisfactory agreement of any inspection findings. Inspections are normally to be completed within 7-15 days of accepted contract and the parties usually have about 5 days thereafter to work out a satisfactory agreement on what each party is going to pay per inspection report. Sadly, inspectors in Georgia are not required to be licensed or knowledgeable, so it is very important you choose an inspector carefully. Many inspectors are members of ASHI or GAHI which should mean they are qualified.
• BINDING CONTRACT: A contract becomes legally binding upon all parties upon signing by all parties. Any contingencies are to be spelled out in the contract itself.
• CLOSING: Closing in Georgia is done by an attorney who represents the lender. The attorney does not watch out for either the buyer or the seller, just the lender. Either party can have their own attorney present at closing, though this is rarely done since the lender forms are all standard and non negotiable. I attend all closings to be sure the contract is fully followed.
• CONTRACTS: All forms I use are standard GAR forms which have stood legal scrutiny.
• POSSESSION: Can be at any time from closing till any agreed upon time.
• CLOSING COST: Normally, the seller can contribute to buyers closing cost up to 3% of purchase price. Cost can run from 2- 3 ½% depending on price of home. The higher priced the home, the lower the closing cost run as a percentage. Some cost are outside what is considered closing cost and are paid by the buyer. These costs include interest, prepaids, and some taxes, recording fees, etc. These fees usually run much less than 1% and buyers will be notified before closing of cost that will be their responsibility. A “HUD1” statement is prepared by the closing attorney spelling out all cost and exact amount of money required to close and given to buyer prior to closing.
• LENDERS: All lenders in Georgia must be licensed in Georgia in order to do business. As a buyer you can choose any licensed lender to achieve the rates and terms you desire. I have a short list of lenders I will provide you on request. I like to use these only because they have performed well in the past and I find them to be honest in their dealings. Many good lenders are not on my list, so use any you choose.