Are you playing with fire, and don't know it?
This is a question that every business in the lending and financial field must ask themselves when closing real estate loans in the State of Georgia. Don't play with fire unless you are prepared for the pain of a nasty burn!
"Witness-only" is a misnomer for what we do; however, the language is so ingrained within the financial and loan services industry that we will not try to change the terminology in this writing.
This is a question that every business in the lending and financial field must ask themselves when closing real estate loans in the State of Georgia. Don't play with fire unless you are prepared for the pain of a nasty burn!
"Witness-only" is a misnomer for what we do; however, the language is so ingrained within the financial and loan services industry that we will not try to change the terminology in this writing.
Many Georgia attorneys are reluctant to handle real estate closings described as "witness-only" closings out of fear that they will face discipline from the State Bar of Georgia.
In fact, when we appear for signings, we are not mere witnesses, or mere notaries. We present ourselves as attorneys with high credentials and the intensive background screening that attorneys must demonstrate to become admitted to the State Bar of Georgia.
Are you playing with fire by not employing a Georgia attorney to pay loan proceeds through an Interest Only Lawyers Trust Account?
The State Bar of Georgia mandates that all loan closing funds must be paid through the trust account of a Georgia lawyer. This rule applies to all financial institutions that secure loans with a property conveyance as collateral. By not paying loan proceeds through the trust account of a Georgia attorney, you are practicing law without a license, a misdemeanor in the State of Georgia.
Georgia law requires that financial proceeds must be paid through an attorney's trust account and we recommend to all financial institutions that they employ a Georgia-licensed attorney within their establishments. We can assist companies by providing names of attorneys in your home state, or in the State of Georgia, who are licensed by the State Bar of Georgia.
Beware: The "witness-only" attorney is not protecting you from the Unauthorized Practice of Law! The signing is only one aspect of a real property transaction that requires the use of an attorney.
I realize that many financial institutions may not want to hire a Georgia-licensed attorney; however, there are very sound reasons for doing so, particularly if you are hiring attorneys to do "witness-only" closings. If you play with fire, don't whine when you feel the stinging tinge of a painful burn. Ouch!
Likewise, title documents must be processed by a professional licensed to prepare property titles. The attorney you hire for a "witness-only" closing is not going to provide you with protection from criminal prosecution for not properly handling the other aspects of a real property closing in accord with Georgia's Unauthorized Practice of Law requirements.
I realize that many other states allow notaries to take actions that are broader in scope than are allowed by the Supreme Court of Georgia. The law is often different from what we might like it to be; however, it is in your best interests, and ours, that you do things right and that you fully comply with Georgia law!
You can comply with Georgia law very easily by hiring a Georgia attorney at your home office or in Georgia. Georgia law requires that a Georgia lawyer oversee the entire loan closing process, including title preparation, HUD signing, and loan closing with the borrower. Funds must be paid through the attorney's trust account too! Shortcuts are like playing with fire!
If you need assistance in locating a Georgia lawyer, please contact us and we will assist you with recruitment.
Lay people cannot practice law in the State of Georgia. Period.
You do not want the State of Georgia seeking criminal and civil actions, including an injunction, against your company, don't play with fire!
In fact, when we appear for signings, we are not mere witnesses, or mere notaries. We present ourselves as attorneys with high credentials and the intensive background screening that attorneys must demonstrate to become admitted to the State Bar of Georgia.
Are you playing with fire by not employing a Georgia attorney to pay loan proceeds through an Interest Only Lawyers Trust Account?
The State Bar of Georgia mandates that all loan closing funds must be paid through the trust account of a Georgia lawyer. This rule applies to all financial institutions that secure loans with a property conveyance as collateral. By not paying loan proceeds through the trust account of a Georgia attorney, you are practicing law without a license, a misdemeanor in the State of Georgia.
Georgia law requires that financial proceeds must be paid through an attorney's trust account and we recommend to all financial institutions that they employ a Georgia-licensed attorney within their establishments. We can assist companies by providing names of attorneys in your home state, or in the State of Georgia, who are licensed by the State Bar of Georgia.
Beware: The "witness-only" attorney is not protecting you from the Unauthorized Practice of Law! The signing is only one aspect of a real property transaction that requires the use of an attorney.
I realize that many financial institutions may not want to hire a Georgia-licensed attorney; however, there are very sound reasons for doing so, particularly if you are hiring attorneys to do "witness-only" closings. If you play with fire, don't whine when you feel the stinging tinge of a painful burn. Ouch!
Likewise, title documents must be processed by a professional licensed to prepare property titles. The attorney you hire for a "witness-only" closing is not going to provide you with protection from criminal prosecution for not properly handling the other aspects of a real property closing in accord with Georgia's Unauthorized Practice of Law requirements.
I realize that many other states allow notaries to take actions that are broader in scope than are allowed by the Supreme Court of Georgia. The law is often different from what we might like it to be; however, it is in your best interests, and ours, that you do things right and that you fully comply with Georgia law!
You can comply with Georgia law very easily by hiring a Georgia attorney at your home office or in Georgia. Georgia law requires that a Georgia lawyer oversee the entire loan closing process, including title preparation, HUD signing, and loan closing with the borrower. Funds must be paid through the attorney's trust account too! Shortcuts are like playing with fire!
If you need assistance in locating a Georgia lawyer, please contact us and we will assist you with recruitment.
Lay people cannot practice law in the State of Georgia. Period.
You do not want the State of Georgia seeking criminal and civil actions, including an injunction, against your company, don't play with fire!
For more information on the Unauthorized Practice of Law, please read my other articles in this blog and the State Bar of Georgia Opinions and the Supreme Court of Georgia ruling, also on our website.
You drive with a license and insurance, so why not handle loans without full legal protection? Don't wait and don't get burned!
Burton Fletcher, J.D., MBA
Member, State Bar of Georgia, State Bar of California
NNA Certified Notary Signing Agent
Commissioned Notary
Professor, Business Administration (Ret.)
Owner, Georgia Signing Agents.com, LLC
Tel: 229.245.8858
Fax: 310.868.2500
Desk1@GeorgiaSigningAgents.com
Copyright 2007. All Rights Reserved.
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