Call Us Today(770) 280 – 4524

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Call Us Today (770) 280 – 4524

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Residential Real Estate Services

At Nikki Woo Law & Associates, we are very knowledgeable on the closing process. We will be there to guide you during all phases of the closing process, answering any questions that you may have. If you encounter any issues during your transaction, we will be right there with you to help you make the best decisions for you and your family

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Glossary

Broker:
A licensed real estate professional that helps people buy and sell houses. The broker usually represents the seller of a property.
Closing Costs:
Expenses not included in the price of the property.

Examples:

  • Appraisal Fee
  • Title Searches
  • Credit Report
  • Home Inspection
  • Attorney Fee
  • Recording Fees
  • Escrow Fee
  • Transfer Taxes
    Concessions:
    Benefits that are thrown into a contract to close the deal. Both buyers and sellers can make concessions. Some examples: closing costs, appliances, repairs, etc.
    Contingency:
    Conditions included with the offer of a home that must be fulfilled before the deal can close. Although there are many, financing contingencies and inspection contingencies are the two that you usually hear the most about.
    Default:
    A default occurs when a borrower falls behind on their mortgage loan payments and their home is at risk for going into foreclosure.
    Deed:
    A deed is a document that transfers ownership of property. The deed has the names of the people that used to own the house and the people who now own the house. It is signed by the person who is doing the transferring of the property.
    Due Diligence Period:
    The buyer’s responsibility to thoroughly investigate the property within a specified amount of time. Depending on the results of their investigation, the buyer may continue with the original contract, or they may want to amend the contract, or even cancel it.
    Earnest Money:
    The money you pay to secure the contract. This money is typically held jointly by the seller and buyer in an escrow account. If you back out of the sale, you will need to see if the reason you backed out is covered by contingencies. If it is not, you will forfeit that money.
    Encroachment:
    When something crosses over the property line of neighboring lots. Encroachments can affect the title and may need to be looked into before buying or selling a house.
    Escrow:
    Money, documents and other assets held by a third party on behalf of the buyers and sellers during a transaction. Once the conditions have been met, the assets being held in escrow are released to their prospective parties.
    Equity:

    The amount of a home’s value that the owner actually owns. Equity is calculated by taking the final sale price of the home and subtracting the amount the owner still owes on the mortgage loan. So, if you were to sell your house, the equity would be the money you would receive after paying off the mortgage.

    Final Sale Price – Mortgage loan Amount Owed = Equity

    Foreclosure:
    When home owners fail to keep up with their mortgage payments, the bank or lender will take control of the property. Once the owner defaults on their mortgage payments, they will have a couple months to catch up on the payments before the ownership of the home is transferred to the bank or lender.
    HUD-1 Statement:
    The HUD is a summary of the financial aspect of the transaction. It will itemize services and fees involved in the transaction. Some of these services and fees are the purchase price, closing costs, the loan amount, and many more.
    Lien:
    A legal claim on property. A mortgage lender usually holds the most significant lien on a property. Other companies (utilities, contractors, etc.) can file a lien on a home in hopes of getting their money. If there are liens on your property you are going to have some issues when it comes to selling the property. You must pay off the lien(s) to get a clear title and proceed with selling of the property.
    Mortgage:
    A loan that a bank gives you to help finance the purchase of a home. The loan is repaid over many years, plus interest, until they own the home outright.
    Principal:
    The total amount of money you borrowed to purchase the home.
    Quitclaim Deed:
    The transferring of ownership of a home to another party. Quitclaim deeds are usually used when transferring property to a family member or spouse. This type of deed makes no guarantee that the person releasing their claim to the property actually has ownership.
    Refinance:
    People refinance their home to pay off one loan to get another one with better terms, usually a lower interest rate. Other terms that may be altered are the payment amount and the payment date(s).
    Title:
    A document that shows ownership of a specific real estate property.
    Title Search:
    An investigation into the title to determine the history of ownership of a property. When doing a title search, there are many things we look for, such as, liens, restrictions, encroachments and other factors.

    FAQs

    What is real estate law?
    A branch of law that protects buyers, sellers, agents, and all involved with real estate transactions. Practice areas include but are not limited to: sales, purchases, other transfers of property, rental property and landlord issues, title issues, zoning and land use, and much more. Real Estate Laws differ from state to state.
    Why do I need to hire a real estate attorney?
    Neither buying nor selling a house is easy. There are a lot of grounds to cover… literally. From both the buyer end and the seller end, there are a lot of different things that need to be done and documents to be signed to make sure things go smoothly and as planned. A real estate attorney knows what to look for and they know what to do when a complex situation arises. Georgia is a state that requires you to hire a real estate attorney to facilitate the closing.
    Who gets to choose the closing attorney?
    Give us a call.
    What are some important steps to take before closing on a home?

    Some important steps to take before closing on a home:

    • Title Search – Find out who is on the title now and who has been on it previously. You will also find out if there are any issues (lien, mortgage, judgement) that may cause you trouble when transferring the title.
    • Home Inspection – this will give you an idea about the condition of your home and if there are any issues that you need to be aware of or anything that may need to be fixed.
    • Closing Costs– Know what your closing costs are going to be and prepare for them financially.
    What are some important steps to take when selling a home?

    Some important steps to take when selling a home:

    • Disclosure Statement – Prepare a disclosure statement, detailing any issues with the property. Discuss with your attorney what does and doesn’t need to be disclosed.
    • Appraisal – Have the home appraised to find out it’s worth.
    • Mortgage Payoff– Check with your lender to find out the payoff of your current mortgage.
    What Can affect the title of my home?
    Foreclosures, bankruptcy, descendant’s debts, mortgages, taxes, and more.
    Why is title insurance important?
    Title insurance protects real estate owners and lenders against financial loss from defects in the title. Unlike other insurances, health, car, life, etc., title insurance protects against things relating to the property and the owners that have happened in the past. Also unlike other insurances, title insurance is paid one time at the closing, not monthly or annually. It’s important because it protects you if title issues come about in the transaction. These possible issues could cost you the house if they aren’t taken care of ahead of time.
    What is a disclosure statement and why is it important?
    As a seller, you must provide a disclosure statement detailing certain defects and other information about the property. For buyers, disclosure statements serve the purpose of informing them, a kind of heads-up. For the sellers, these statements protect them against possible future legal action. Not all states have the same rules and regulations when it comes to disclosing. It’s important to do your research and speak with an attorney about what needs to be disclosed and what doesn’t.
    What is the “closing”?
    A final meeting of all parties involved in the real estate transaction. Documents are signed to transfer the title to the new buyers. There are usually 3 behind-the—scenes steps for a real estate attorney during closing: Pre-closing, closing, and post-closing.
    When Should I first consider refinancing?

    Ideally, you will want to think about refinancing if you can get a lower interest rate and better terms to pay off your mortgage.Calculate the break-even point to decide whether a refinance makes sense for you.If you don’t plan on staying in your home for very long, then refinancing might not make much sense for you.

    There are many other factors to consider before refinancing your home:

    • Current Interest Rate
    • Closing Costs
    • Credit Score & History
    • Income & Debt
    • Loan Term
    • Mortgage Prepayment Penalty
    • Adjustable-Rate or Balloon Mortgage
    What is a Transfer Tax?
    A transfer tax is the fee charged when a title is being passed from one person to another. Each state charges a different amount. Georgia’s transfer tax is currently at a fee of $0.10 / $100 at a rate of 0.1%.
    What are the different types of property ownership?
    Sole Ownership, Tenants in Common, Joint tenancy, Tenancy by the Entirety, Community Property, Trusts.
    How is it that I owe taxes on property that I don’t own anymore?
    The amount of tax you owe and what you pay taxes on is based on the assessed value of the tangible personal property you owned on January 1 of that year. So, if you owned the property on January 1, you are responsible for the ad valorem tax for the year, even if you sell the property.