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News and Ideas for
Real Estate and Mortgage Professionals
April 2016
  
Welcome to this month's edition of the McManamy McLeod Heller, LLC monthly newsletter. Each month we share important information for the serious real estate professional. You can rely on MMH to update you on current changes in real estate law that will impact your business and to offer you practical ideas on how to provide your clients with the best customer service in town.

Our topic this month is about issues involving the adding of a person to Title after the closing.
   
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Adding A Person To Title
 
Sale of Personal Property
 
It is common in closings that a transaction may close in one name but the purchaser wishes the title to be held some other way after closing.

SITUATION 1:
WIFE WILL BE ON TITLE BUT SHE WILL NOT BE ON THE LOAN

If there is a lender involved, the first step is to check that they will allow this to happen. If they do, then typically the lender will have the non-borrowing party sign both the Security Deed and the Truth In Lending document. Therefore, the person being added to title will need to attend the closing ceremony and both names should be listed on the contract.

SITUATION 2:
AFTER CLOSING, THE PURCHASER WISHES TO TRANSFER
THE PROPERTY INTO THEIR LLC/TRUST ETC.

If there is a typical loan involved, this is a violation of the due on sale clause contained in the Security Deed. Many times the parties are willing to take that risk and if so, they will need to have a deed prepared after closing, transferring the property to the name of the desired entity or party. If the lender discovers this, the lender can call the entire loan due. The attorney that handled the closing will not typically be willing to prepare a deed under this circumstance.

If a deed is done in this situation, the person being added does not need to be present to sign the deed.

DANGERS IN ADDING A PERSON TO TITLE
1. If the title is changed after closing without the lender's permission, the lender could call the loan due under the Due on Sale Clause of the Security Deed.

2. If a name is being added to title, it is advised to do a lien search on the name being added. Any lien against that person will attach to the property and the property will not be able to be sold without either paying or cancelling the lien.

3. The person added to the title will have to sign any deed to further transfer or encumber the property.

4. Changing the name on the title could invalidate or reduce the coverage under the owner's title insurance policy.
   
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Have You Visited Our eNewsletter Archive?
 
Missed a past eNewsletter or want to review a past article? McManamy McLeod Heller archives all of our past eNewsletters on our website at www.mmhfirm.com. Visit the site and click on the "View Our eMail Archive" button.
 
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MMH Has 3 Locations to Serve Your Needs    

Buckhead Location:
3520 Piedmont Road NE, Suite 110
Atlanta, Georgia 30305
Phone:  404-442-6600
Fax:  770-351-0940
 
Midtown Location:
621 North Ave NE Suite C100
Atlanta, Georgia 30308
Phone:  404-502-3334
Fax:  1-866-898-1099
 
Alpharetta Location:
11525 Haynes Bridge Rd. Suite 250
Alpharetta, Ga  30009
Phone 770-781-3000
Fax:  888-998-7373
 
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Thank you for taking the time to read our newsletter.
 
Next month we will review steps to take to prevent wire fraud in real estate closings. 

We would love your input on topics for future issues. Please send your suggestions to info@mmhfirm.com.
 
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