Real Estate
Frequently Asked Questions
By Shelley Elder, Estate and Probate Lawyer serving the North Atlanta metro area, including Bartow County, Cherokee County, Cobb County, Paulding County.
Do I really need a real estate lawyer?
In all likelihood, a real estate transaction will be one of the largest and most important purchases of your life. When a real estate transaction takes place, whether it is a purchase, sale, rental agreement, or real estate dispute of some kind, there could be several people and/or companies involved at various stages. Humans are imperfect creatures, as we all know, and any one of them might make a mistake which could end up costing you a lot of time and money. A real estate attorney can help navigate you through complicated processes, review all the required documents for accuracy, ensure that you purchase a home with a clean title, check to be sure that there are no tax liens on the property, and look out for your best interests.
Your real estate lawyer is ethically required to look out for your best interests and all communications between you and your attorney will be kept confidential.
Why is a deed required for property?
Simply put, a deed is a legal document which transfers ownership of property from one owner to the next owner. It includes a description of the property, and is signed, notarized, and filed in the county where the property is located. There are different types of deeds and your attorney can determine what is best for your situation.
What is a title?
A title is the owner's right to own, use, and enjoy the property.
Why is transferring the title to real estate so important?
Land can have many owners over the years, and various rights (i.e., mineral rights or utility rights) may have been attained by others over time, even if there has been nothing built on that land. It is important for you to have a clear title to a piece of land, and your attorney can help you determine if any rights are outstanding.
The title search conducted by your real estate attorney will also discover whether there are any defects or claims on the property.
Does it matter how I take title to commercial real property?
It most definitely matters how you take title to commercial property. If you take title as an individual, you are opening yourself up to liability. If you take title as a corporation, it may not benefit you in a tax sense. Your situation may call for an alternative, such as perhaps establishing a limited liability company, or taking title as joint tenants as a partnership. Your real estate lawyer can evaluate your situation, often in conjunction with your CPA, and make a proper recommendation for you.
What is title insurance?
Title insurance is protection against financial loss due to title defects, liens, or other matters (i.e., forgery, undisclosed heirs, errors or omissions in deeds). The bottom line is that if there is a problem with your title, your insurance should help you. Depending on what your policy says, it can pay for court fees and reimburse you for any loss. Title insurance is always recommended.
What is a 1031 exchange?
In a normal real estate transaction, the owner/seller is taxed on any gain received from the sale. However, through a 1031 exchange (Internal Revenue Code Section 1031), any tax on the gain is deferred until a future date.
In this type of transaction, an owner sells property and purchases a “like kind” property and it is treated as a replacement or exchange, rather than a sale/purchase. The thought process in a 1031 exchange is that the investment is still the same and only the form has changed.
Once the replacement property is sold at some later date, then the owner would have to pay the required taxes on the gain.
Can Elder Law Firm help with the purchase of a foreclosure or bank-owned property?
Transactions for a foreclosure or bank-owned property may be more complex than the usual purchase of a property, so experienced help is most certainly recommended. Elder Law Firm is experienced in real estate transactions of all types and can assist you with your needs.
If I am purchasing property, can I select a real estate attorney of my choice for my closing?
You may absolutely choose your real estate attorney. You are the buyer, this is your transaction, and you are paying for the closing attorney.
Sometimes a homebuilder will offer to pay a portion of your closing costs if you use an attorney or lender that they recommend. These professionals may do a good job, but sometimes the homebuilder selects them because they will do things a certain way which might benefit the homebuilder more than you. Your closing attorney should represent your interests. Let Elder Law Firm look out for you.
Why should I choose Elder Law Firm to represent me in my real estate transaction?
At Elder Law Firm, we have more than twenty years experience completing real estate transactions. We pride ourselves in being accessible to our clients and provide you with the individual care that only a small firm can offer. We review and explain each document you are required to sign in layman’s terms and are happy to answer any questions and address any concerns you may have. We care about our clients and look out for your best interests.
Shelley Elder of Elder Law Firm meets with clients in the North Atlanta metro area, including Acworth, Cartersville, Dallas, Emerson, Kennesaw, Marietta, Powder Springs, Smyrna, and Woodstock.
Do I really need a real estate lawyer?
In all likelihood, a real estate transaction will be one of the largest and most important purchases of your life. When a real estate transaction takes place, whether it is a purchase, sale, rental agreement, or real estate dispute of some kind, there could be several people and/or companies involved at various stages. Humans are imperfect creatures, as we all know, and any one of them might make a mistake which could end up costing you a lot of time and money. A real estate attorney can help navigate you through complicated processes, review all the required documents for accuracy, ensure that you purchase a home with a clean title, check to be sure that there are no tax liens on the property, and look out for your best interests.
Your real estate lawyer is ethically required to look out for your best interests and all communications between you and your attorney will be kept confidential.
Why is a deed required for property?
Simply put, a deed is a legal document which transfers ownership of property from one owner to the next owner. It includes a description of the property, and is signed, notarized, and filed in the county where the property is located. There are different types of deeds and your attorney can determine what is best for your situation.
What is a title?
A title is the owner's right to own, use, and enjoy the property.
Why is transferring the title to real estate so important?
Land can have many owners over the years, and various rights (i.e., mineral rights or utility rights) may have been attained by others over time, even if there has been nothing built on that land. It is important for you to have a clear title to a piece of land, and your attorney can help you determine if any rights are outstanding.
The title search conducted by your real estate attorney will also discover whether there are any defects or claims on the property.
Does it matter how I take title to commercial real property?
It most definitely matters how you take title to commercial property. If you take title as an individual, you are opening yourself up to liability. If you take title as a corporation, it may not benefit you in a tax sense. Your situation may call for an alternative, such as perhaps establishing a limited liability company, or taking title as joint tenants as a partnership. Your real estate lawyer can evaluate your situation, often in conjunction with your CPA, and make a proper recommendation for you.
What is title insurance?
Title insurance is protection against financial loss due to title defects, liens, or other matters (i.e., forgery, undisclosed heirs, errors or omissions in deeds). The bottom line is that if there is a problem with your title, your insurance should help you. Depending on what your policy says, it can pay for court fees and reimburse you for any loss. Title insurance is always recommended.
What is a 1031 exchange?
In a normal real estate transaction, the owner/seller is taxed on any gain received from the sale. However, through a 1031 exchange (Internal Revenue Code Section 1031), any tax on the gain is deferred until a future date.
In this type of transaction, an owner sells property and purchases a “like kind” property and it is treated as a replacement or exchange, rather than a sale/purchase. The thought process in a 1031 exchange is that the investment is still the same and only the form has changed.
Once the replacement property is sold at some later date, then the owner would have to pay the required taxes on the gain.
Can Elder Law Firm help with the purchase of a foreclosure or bank-owned property?
Transactions for a foreclosure or bank-owned property may be more complex than the usual purchase of a property, so experienced help is most certainly recommended. Elder Law Firm is experienced in real estate transactions of all types and can assist you with your needs.
If I am purchasing property, can I select a real estate attorney of my choice for my closing?
You may absolutely choose your real estate attorney. You are the buyer, this is your transaction, and you are paying for the closing attorney.
Sometimes a homebuilder will offer to pay a portion of your closing costs if you use an attorney or lender that they recommend. These professionals may do a good job, but sometimes the homebuilder selects them because they will do things a certain way which might benefit the homebuilder more than you. Your closing attorney should represent your interests. Let Elder Law Firm look out for you.
Why should I choose Elder Law Firm to represent me in my real estate transaction?
At Elder Law Firm, we have more than twenty years experience completing real estate transactions. We pride ourselves in being accessible to our clients and provide you with the individual care that only a small firm can offer. We review and explain each document you are required to sign in layman’s terms and are happy to answer any questions and address any concerns you may have. We care about our clients and look out for your best interests.
Shelley Elder of Elder Law Firm meets with clients in the North Atlanta metro area, including Acworth, Cartersville, Dallas, Emerson, Kennesaw, Marietta, Powder Springs, Smyrna, and Woodstock.
