Sunday, February 11, 2007

Can A Georgia Notary Close Non-Georgia Property In Or Outside Georgia?

Question: "What if the property is in Georgia and the owner lives in California, can a notary in California handle the signing for them?"

Answer: I believe the best answer is no.

Financial transactions involving Georgia property require the active involvement and participation of an attorney licensed and admitted to the State Bar of Georgia.

I believe the California notary could authenticate the documents under the direction of a Georgia lawyer; however, the California notary could not work independently except under the supervision of a Georgia lawyer. The best source of information would be the State Bar of Georgia (http://www.gabar.org/).

Georgia Attorney Pat McMahon expressed his thoughts this way: "Where the property is in Georgia and the owner is in California, I have seen two ways to handle this matter. First with a power of attorney to a local individual. The other way is to do what is called a mail-away closing."

"Some [real property attorneys] feel strongly that a mail away is unethical and improper. The way I have seen mail-aways handled is to contact your title insurance agent in the away state or a local out-of-state attorney and have them witness the execution of the documents. The rub with this is the Waiver of borrower's rights which the out-of-state attorney cannot do. In either case all other elements of the closing transaction are handled by the Georgia attorney."

If the property is in Georgia, Georgia law requires the employment of a licensed Georgia attorney and a non-attorney cannot close the transaction as to do so would constitute the Unlawful Practice of Law. From personal experience, I can state that there is a great number of lawyers in California who are licensed to practice law in Georgia.

  1. If the borrower is in California, and the property is in Georgia, then a Georgia lawyer must handle the transaction. A lawyer not licensed in Georgia cannot handle the transaction as this would be the Unauthorized Practice of Law.

  2. If the signing involves a Georgia property, a Georgia lawyer is required and a non-lawyer cannot handle the transaction as this would violate Georgia law.

  3. Though commonly practiced, I believe it is questionable as to whether a non-lawyer can close non-Georgia property within the State of Georgia.
Please read http://georgia-upl-law.blogspot.com/ and http://thenotaryeagle.blogspot.com/ for detailed explanations as to the basis for my opinions.

I will also go out on a limb and indicate my opinion that it is also the Unauthorized Practice of Law to handle a closing inside the territory of the State of Georgia unless you are a licensed member of the State Bar of Georgia.

I realize that this is a common practice; however, I believe there are good arguments for my position. My blogs will cover this subject in more detail.

(My opinion is based on my interpretation of the law; however, you would need to consult with your own legal counsel for a definitive answer. I realize this is a wiggle; however, no one wants to be sued, and, unless you are paying for my advice, I reserve the right to be wrong!)

Burton Fletcher
Owner
Georgia Signing Agents.com, LLC
Desk1@GeorgiaSigningAgents.com

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