Atlanta Business Lawyer Blog

As an Atlanta, Georgia real estate litigation lawyer, I often work with clients to ensure that title disputes do not inhibit the sale of property. This two part series outlines several ways to resolve title disputes, including Quiet Title Actions. In this segment, I discuss how you can “quiet a title” without going to court, the circumstances under which you might need a Quiet Title Action to clear a title, and the two types of Quiet Title Actions in Georgia.

If the source of the problem with a title is already known, as might be evident in a case with a hostile partner who you know has no real interest in the land itself, you can opt to obtain a quitclaim deed from that person and put that on title. This will allow you to clear the title without going to court with a Quiet Title Action. But often the source of a dispute is not apparent and legal action with a Quiet Title Action is necessary. Disputes over titles can arise from tax sales, mechanics’ and materialmen’s liens, historical mechanics’ liens, issues of hostile ownership, boundary disputes, federal or state tax liens and disputes with a spouse or business partner (former or current). Adverse possession or prescription of title also cloud titles when an individual claims to have held the property for a long period of time without documentation or when, under Color of Title, that individual possesses a defective document that appears to show ownership.

Most of the issues listed above can be resolved using a Quiet Title Action, with the exception of federal or state tax liens and disputes involving a spouse. Federal and state tax liens must be addressed by another court and disputes involving a spouse fall under the domestic relations statutes in Georgia. When a Quiet Title Action is necessary, it is wise to seek the assistance of an experienced Atlanta, Georgia real estate lawyer. Your lawyer will choose from the two methods available to “quiet a title.” Both types fall under the Equity Code in Georgia (Chapter 23). The first is the Conventional Quiet Title Action that removes a known instrument or known instruments (Chapter 23-3-40). This method is not very common, but it is useful when you know exactly what is clouding the title and who is behind it. With this type of case you do not need to serve everyone with the petition, since you already know what and who is at the root of the issue.

Much more usual is use of the Quiet Title Act of 1966 (Georgia Equity Code Chapter 23-3-60 through 23-3-73). This method clears all known clouds on titles and as such, requires that the whole world be served with the petition. Because everyone is served, all disputes can be aired and resolved. This allows the title insurance company to insure the title, so that the seller can pass the property on to the purchaser with what is called “good and marketable title”. Because this form of Quiet Title Action clears any and all disputes on the title, it is an effective way to guarantee that a title is free and clear.

Keep an eye out for my next installment of this series on resolving Georgia title disputes. I will examine the general guidelines that need to be followed if you do go to court with a Quiet Title Action and take a look at a typical timeline for these cases.

Continue reading "GEORGIA TITLE DISPUTES RESOLVED WITH QUIET TITLE ACTIONS: PART 1 OF 2" »

In the previous segment on resolving title disputes with Quiet Title Actions, I discussed what Quiet Title Actions are used for, in what types of title disputes they can be effective and the two types of Quiet Title Action lawsuits. In this installment I will explain where the case is tried and the general guidelines that need to be followed when going to court with a Quiet Title Action. We will also take a look at a typical timeline for Quiet Title Action cases.

Georgia’s Equity Code provides that a Quiet Title Action may only be filed in the county where the land in question is located. Because Georgia has 159 counties, it is critical to be specific about where the land is located and in what county the claim is filed. In Georgia, the highest plenary court in any county is the Superior Court, so these lawsuits must be filed in the Superior Court of the county where the land is located. When filing a petition it is required that you state specifically what land you are suing to remove the clouds from and the suit must be signed and verified by you, the petitioner (as a petition in equity, the petitioner must swear to the facts). If you are filing under the Quiet Title Act of 1966, you must petition to remove all disputes, or clouds to title. Also, you must file a recent plat of the land, a copy of a recent survey of the land and a copy of the immediate deed or interest of the petitioner (this is the document that indicates that the petitioner is the true owner of the land). Once the petition is filed, a notice to “the whole world” must be filed at the land records office stating that there is a lawsuit pending regarding the land and that anyone that takes the land by deed or transfer, takes it subject to the lawsuit under lis pendens.

When the lawsuit is filed, the Superior Court judge of the county will assign the case to a lawyer, called a Special Master. From this point on the Superior Court judge typically has limited involvement. The Special Master is a lawyer that resides in the judicial circuit or county where the Superior Court is located and who has experience in real estate law. The Special Master is charged with examining the title. He does this by holding a hearing, and sometimes a trial, and by reviewing the petition to see that everything has been filed appropriately. He will also ensure that everyone that was required to be served the petition was served. It is important to note that all neighboring landowners will be served, so that they have an opportunity to bring up any outstanding disputes, such as boundary issues. Everyone served has 30 days to respond to the claim.

Then, just like any other trial, the case goes into an evidentiary phase during which there may be requests for documentation, depositions, physical inspections of the land, subpoenas and any other action that is allowed in Superior Court. As the petitioner, you may do anything you want to acquire evidence to prove your case. You must have proof of ownership, though, as it is not enough to just disprove someone else’s claim to the land. Failure to show proof of ownership is grounds for dismissal of the lawsuit. Once the evidence is gathered, the Special Master will review everything and send a written report to the Superior Court judge. The Superior Court judge will then make a determination of the title. Most times the judge will make this ruling based on the Special Master’s report, but in rare cases the judge might ignore the Special Master’s report and require that a trial be held or that evidence be reviewed. Usually though, the Superior Court judge accepts the Special Master’s report, processes an order which decrees the title to the land (eliminating clouds to title) and files the order with the court clerk.

Once the judge files the order with the clerk, the title is considered “good and marketable” in Georgia, although technically at this point there is a 30-day waiting period to allow for all final appeals to run out. This appeal period allows for anyone in the world, who did not have notice of the case, to come forward and file an appeal. To be recognized however, anyone stepping forward during this appeal period has to prove that they did not originally receive notice of the Quiet Title Action lawsuit. When the 30-day period ends the judgment is considered final, and once this occurs it is very difficult to reopen the claim. All title companies in Georgia will issue a “good and marketable” title at this point when the appeal period is over and the judgment becomes final and non-appealable.

Continue reading "GEORGIA TITLE DISPUTES RESOLVED WITH QUIET TITLE ACTIONS: PART 2 OF 2" »

Imagine the scenario: you and your partner establish a new business entity in Atlanta and after some minor adjustments to the layout of the new office space, you are finally ready to move in and begin day-to-day operations. You quickly realize that your current office equipment is inadequate and outdated. Furniture and computer equipment is required. Because this is a new business venture, there is little cash available and it is decided that each one of you will buy some of the equipment for the office. You both pay for the equipment with personal funds. You buy the furniture at a cost of $12,500 and your partner buys computer equipment for $18,200. As time passes, you and your partner enthusiastically focus on generating business and the exact amount that each of you spent on the equipment is a fading memory.

Initially these expenditures do not seem to pose a problem. Yet without proper documentation, this seemingly innocent scenario can turn into a conflict that, even when business is good, may put a strain on your relationship with your partner. More serious legal consequences may arise if your business is sold or liquidated. Without adequate legal intervention, it may become a matter of “he said, she said” debt that is difficult to resolve.

The good news is that this situation can easily be avoided by property setting up Personal Guarantee Promissory Notes. These promissory notes should reflect the specifics of the business deal in order to ensure fair treatment for all involved, so using a boilerplate agreement is usually insufficient. Seeking the help of an experienced Atlanta, Georgia Business Attorney who will take into consideration the relevant facts specific to your business is critical to having your interests fully addressed and enforced.

Never go it alone. Protect your self and your business by implementing the proper legal instrument through a qualified business attorney. Your attorney will draft a Personal Guarantee Promissory Note that is specific to the unique circumstances and needs of your business and will ensure that your wishes, needs and desires are fully addressed and enforced.

Continue reading "PERSONAL GUARANTEE PROMISSORY NOTES – AVOID HE SAID” “SHE SAID” DEBTS" »

Atlanta business law firms that practice in the area of fraud litigation have seen a dramatic rise in the number of cases. The Atlanta, Georgia, fraud lawyers at my firm believe the increase in the number of fraud cases is due to the troubled economic times that persons and businesses in the Atlanta, Georgia, area are experiencing. In this troubled economy, we believe otherwise honest people have turned to fraudulent activities to make ends meet.

In a well-known case, ReMax North Atlanta v. Clark, 244 Ga. App. 890 (2000), the Georgia Court of Appeals elaborated on the tort of fraud, which has five essential elements. They are as follows:

1. A false representation or omission of a material fact;

2. Scienter – or knowledge;

3. Intention to induce the party claiming fraud to act or refrain from acting;

4. Justifiable reliance; and,

5. Damages

Fraud can take place in many areas of business. Presently, our Atlanta fraud lawyers are seeing the largest number of fraud cases in the areas of real estate transactions, the construction and building of homes, and the accounting and managing of monies or assets.

Continue reading "BUSINESS FRAUD ATTORNEYS IN ATLANTA SEE DRAMATIC INCREASE IN NUMBER OF CASES" »

As an Atlanta, Georgia, foreclosure and mortgage lawyer, it is apparent to me that in today’s economy, many people are having problems with their mortgage payments and their mortgage companies. Many people have suffered a loss of income that has affected their ability to make their monthly mortgage payment. Others have found themselves stuck in homes that are worth far less than what is owed on the mortgage. Should you have any trouble making your mortgage payments, you likely are going to have to deal with a mortgage company in order to retain your home and move on with your life. Unfortunately, this is easier said than done.

Our Atlanta, Georgia loan modification lawyers realize Mortgage Companies and Banks were not prepared for the economic changes that have occurred in the housing market. Over 3.3 million homes have gone into foreclosure since January of 2008. The Banks simply do not have the employees, time or resources to adequately deal with the number of foreclosures and loan defaults that are occurring. This means long delays in modification deals, never speaking to the same person at the bank twice and general confusion that can lead to losing your home in foreclosure, even if you think that you are negotiating a modification or that you have an agreement concerning you arrearage in place with your lender.

Complicating the situation even further is the fact that most mortgages in Georgia provide that any foreclosure are “non-judicial”. This means that the lender does not have to use the court system to foreclose on your property and sell your house. Instead, they are allowed to send you a notice that they intend to sell your house on the courthouse steps on the first Tuesday of the next month. They also publish this notice in the local paper. Then when four weeks have passed, they auction the house at a sheriff’s sale to the highest bidder.

Fortunately, legal options are available those are facing foreclosure. In Georgia, mortgagors are required to use the utmost good faith in their dealings with you.

Specifically, O.C.G.A. § 23-2-114 provides:

Powers of sale in deeds of trust, mortgages, and other instruments shall be strictly construed and shall be fairly exercised. In the absence of stipulations to the contrary in the instrument, the time, place, and manner of sale shall be that pointed out for public sales. Unless the instrument creating the power specifically provides to the contrary, a personal representative, heir, heirs, legatee, devisee, or successor of the grantee in a mortgage, deed of trust, deed to secure debt, bill of sale to secure debt, or other like instrument, or an assignee thereof, or his personal representative, heir, heirs, legatee, devisee, or successor may exercise any power therein contained; and such powers may so be exercised regardless of whether or not the transfer specifically includes the powers or conveys title to the property described. A power of sale not revocable by death of the grantor or donor may be exercised after his death in the same manner and to the same extent as though the grantor or donor were in life; and it shall not be necessary in the exercise of the power to advertise or sell as the property of the estate of the deceased nor to make any mention of or reference to the death.

The Supreme Court of Georgia has interpreted this statute to mean that a mortgagor must deal with a mortgagee in the utmost good faith, and if they do not, then the mortgagee may have a cause of action against the mortgagor for not acting in good faith. This includes lenders and banks failing to negotiate in good faith with the homeowner regarding payment and when lenders fail to provide the proper notices in foreclosure. If a court determines a foreclosure to have been in violation of these duties, then the foreclosure may be rescinded or the homeowner may be awarded monetary damages.

Continue reading "ATLANTA, GEORGIA, MORTGAGE, FORECLOSURE, AND LOAN MITIGATION LAWYERS INQUIRE; UNDER O.C.G.A. SECTION 23-2-114, DOES THE BANK OR LENDER HAVE A DUTY TO YOU? YES MAYBE THE ANSWER" »

As an Atlanta, Georgia business lawyer, I have had a number of business persons ask me, “do corporations in Georgia need to be represented by an attorney?” The answer is a resounding “Yes”.

First, in Georgia business litigation matters, corporations must be represented by a licensed Georgia attorney in “courts of record.” Eckles v. Atlanta Tech Group, 267 Ga. 801, 485 S.E.2d 22 (1997). The Georgia Supreme Court found that although a corporation may be considered to be a “person” under Georgia law, when the corporation is facing litigation, it must hire an attorney to be represented in court. The Court reasoned that because a corporation can only act through its agent, when that agent represents a corporation in court, he or she is acting as a legal representative and must be a licensed attorney. Thus, a corporation cannot represent itself in court and must hire business attorney.

Although not required by law, several other essential reasons exist for having an experienced Georgia business attorney involved in your company’s non-litigation matters. Having a knowledgeable attorney represent your business from the outset can save your corporation substantial monies, unnecessary trouble and expense, and protect your business from costly disputes and litigation. Areas in which an attorney can be extremely beneficial include, but are not limited to, ensuring proper corporate entity formation, employment contracts and hiring or firing decisions, entering into third party contracts, and avoidance of disputes and litigation.

• Incorporation: Deciding whether to form a corporation or a limited liability corporation (LLC) can have significant personal liability and tax consequences. Further, many specific legal formalities must be followed in order to incorporate or form an LLC, including the execution of many legal documents. Thus, it’s essential to have a knowledgeable corporate attorney advise you on the type of business entity that is best suited for your company. If you are unsure what steps your business should take, investing in even an hour of an attorney’s time can lead to a huge return on investment. Simple mistakes in incorporating can lead to serious financial and legal issues at a later time.

• Employment Contracts: Many employee disputes and lawsuits could be avoided by having an attorney involved at the outset. Claims may arise because of confusion over job duties, payment of wages, and the failure to sign important documents such as non-disclosure of company secrets or non-competition agreements. Having an attorney ensure proper employment agreements and documents are in place at the beginning of an employment relationship can save your company from unnecessary trouble and expense down the road arising from employee disputes and litigation.

• Hiring and Firing: Our Atlanta business lawyers are well versed in the employment law. We know and understand there are legally correct methods to hire, fire, and lay off employees. The business employment lawyers at our firm understand the importance properly hiring new employees and setting expectations of them, executing the proper employment contracts, legally documenting these matters, as well as engaging in an appropriate amount of other protective measures for your business. Likewise, our Atlanta business employment lawyers understand the necessary steps and measures and document employee performance, adherence to business standards, and the proper way to fire or lay off employees should the need arise. The procedures and actions we take can be crucial in case a disgruntled employee decides to file a lawsuit or an action with a governmental entity such as the EEOC.

• Third Party Contracts: It is extremely important to have your own Georgia business lawyers draft contracts and agreements in a manner favorable and protective of your business interests. Likewise, contracts offered by third party vendors, leases, and distribution agreements are often one-sided in favor of another party. As such, it is important to have a knowledgeable business attorney review all documents and contracts in order to ensure your company’s best interests are protected. Oftentimes, this includes negotiations concerning essential and material terms of any contract.

• Avoiding Disputes and Litigation: The Atlanta business lawyers at our firm understand that we live, work, and conduct business in an increasingly litigious society. Our business lawyers consider protecting you and your business from being involved in litigation an essential part of their job function. Lastly, if you are a Georgia business facing litigation, it is crucial you hire an experienced Georgia business or commercial lawyer immediately.

Continue reading "AN EXPERIENCED ATLANTA, GEORGIA, BUSINESS ATTORNEY IS ESSENTIAL TO YOUR COMPANY" »

The Atlanta, Georgia, home defect and construction defect lawyers, at our firm strongly advocate you immediately seek legal representation upon finding any hidden defect(s) in your home. A latent (hidden) construction defect is one that could not have been discovered upon a reasonable inspection. Although these defects are not usually readily apparent, once discovered they usually will impact your home’s fair market value. Some examples include structural damage, defective building materials, soil damage, roof damage and termite infestation. Once you have knowledge of the defect, you should act and seek a legal remedy to your problem. Not acting or ignoring the problem could affect the legal rights and remedies available to you.

Oftentimes, Georgia homeowners are devastated when they discover serious home defects months or even years after they have moved into their home. In my practice as a Atlanta, Georgia, new construction defect attorney, I have had many clients come to me who think they are out of luck when they discover a latent defect in their new home.

Thus, the questions arises -- What should homeowners do if they discover latent defects but the homebuilder or seller can not be located or will not correct the problem upon request. The first step is to contact an experienced Atlanta construction lawyer to evaluate your options. I have helped numerous homeowners locate the parties responsible for their home’s defects and obtain just compensation in order to repair the defects and/or compensate them for their home’s diminished value. Determining the identity of the party responsible for losses as the result of latent defects can be challenging.

First, under Georgia law, sellers have a duty to disclose all latent defects that are known and could not be discovered by a diligent inspection of the property. Often latent defects – such as improper installation of roof shingles – are not something that an independent inspector should be expected to locate during an inspection. As a result, if sellers know of the defect, they have the burden of disclosure. If sellers fail to disclose a defect, they may be held responsible for the homeowner’s loss. Types of claims may include fraudulent concealment, fraudulent inducement, misrepresentation, and breach of contract.

Where the construction defect occurs in a newly built home, potential defendants include general contractors, developers, and builders. Sometimes architects and designers may be responsible as well. Additional causes of actions may exist against builders of new homes including negligent construction and breach of express and implied warranties. Under
Georgia’s Right to Repair Act, homeowners must serve notice on contractors at least 90 days before filing a lawsuit. The Right to Repair Act provides allows contractors an opportunity to fix the defect, either fully or partially, settle by monetary payment, or a combination of the two.

However, you may still file a lawsuit if you are not satisfied with a settlement offer, the contractor fails to respond to the notice, or the contractor fails to follow through. An experienced Georgia real estate and construction defect lawyer will ensure you follow the proper steps to preserve your right to file a claim.

Once you contact a dedicated Georgia construction defect attorney, you may be able to recover the costs of repairs and the loss in value to your home as the result of the defect. You may also be able to recover the cost of temporary housing needed while the defect is repaired, the value of the loss of use, court costs, and in some instances, attorney’s fees.
Please contact the Adams Law Offices immediately if you have discovered a latent or other defect in your home. We will find the responsible party and represent you in your endeavor recover the compensation you deserve.

Continue reading "FIND AN EXPERIENCED ATLANTA, GEORGIA, REAL ESTATE AND CONSTRUCTION DEFECT ATTORNEY IMMEDIATELY UPON DISCOVERING LATENT DEFECTS IN YOUR HOME" »

In my many years as an experienced Atlanta, Georgia business attorney, I have witnessed countless business persons begin business partnerships with the best of intentions, only to find themselves in drawn out litigation or disputes. In a high profile partnership dispute case, the Atlanta Journal-Constitution reports that the Atlanta Spirit co-owner Steve Belkin has until Thursday, February 25th to pay $2 million or lose his stake in the partnership. The eight-person partnership has been fighting in court since 2005 to determine how much seven of the group must pay Belkin to buy out his 30% interest.

Belkin is part of a partnership bought the Hawks, Thrashers and Phillips Arena operating rights from Turner Broadcasting System in 2004 and shared voting power equally among three subsets of owners. Like many failed business partnerships, the group almost immediately began having disagreements and losing money.

Our Atlanta, Georgia, business partnership lawyers see partnership disputes arise all the time, between partners, shareholders and family members. This is true for all kinds of business and over a wide variety of business matters. Moreover, the poor economy has caused more and more businesses to lose money. As such, business partners are blaming each other for the company’s failure and fighting over the company’s assets and future. As a result, many partnerships all across Georgia and the nation are floundering.

If your business is suffering from internal disputes, disagreements and financial losses, you need an experienced Georgia business partnership dispute lawyer to be on your side and help you determine several issues such as:

• Do you want to sell your company?

• Do you want to retain control over the business?

• Do you want to operate the business yourself?

• Do you want to retain your personnel?

It is crucial you have an experienced Georgia business attorney with you to determine what your options are in the case of a break up. Typical solutions include settlement, buy-out, sale or distribution of the business, and arbitration.

If your partnership or business is failing or if you are in the midst of a partnership dispute, please contact the Adams Law Offices to help you undertake to protect your business interests.

Continue reading "FIND A DEDICATED ATLANTA, GEORGIA, BUSINESS LAWYER TO PROTECT YOUR PARTNERSHIP INTERESTS AT THE FIRST SIGN OF FAILURE TROUBLE" »

Our Atlanta, Georgia, loan negotiation lawyers strongly advise you hire experienced Georgia mortgage attorney if you are engaging in a short sale or a deed in lieu foreclosure to mitigate the losses incurred by foreclosure on your home. Remember, the banks have attorneys working hard for them to ensure that the bank losses as little money as possible.

A short sale occurs when the sales proceeds are less that the balance owed on the mortgage. The bank or mortgage lender agrees to accept the short sale and incur a smaller loss rather than waiting for a foreclosure. Sometimes the bank will forgive the remaining loan balance, but this needs to be negotiated and properly documented. Otherwise, the bank may initiate litigation against the homeowner to recover the remaining unpaid loan balance plus costs and attorney’s fees.

A deed in lieu of foreclosure provides another alternative to foreclosure. With a deed in lieu of foreclosure, you give your home to the lender in exchange for the lender agreeing to accept the loan without a foreclosure sale. The lender also should promises not to initiate foreclosure proceedings. In many cases, it is possible to have the lender agree in writing to forgive any deficiency that remains after the house is sold. Forgiveness of any deficiency needs to be negotiated and properly documented much as it would in a short sale.

Short sales and deeds in lieu of foreclosure are considered better for homeowners than a foreclosure. The main reason is that they have less of an adverse affect on a person’s credit report and can dispense with forgiveness of debt. However, they have many pitfalls. As such, it is very important to be represented by counsel when negotiating a short sale or deed in lieu of foreclosure.

Continue reading "HOMEOWNERS UNDERTAKING A SHORT SALE OR A DEED IN LIEU OF FORECLOSURE SHOULD HAVE AN ATLANTA, GEORGIA, FORECLOSURE LAWYER REPRESENT THEM" »

Our Atlanta, Georgia, mortgage loan modification lawyers know that if you are among one of the tens of thousands of Georgia homeowner’s facing an Atlanta foreclosure it is imperative you contact an experienced Atlanta foreclosure attorney immediately and at the first sign of mortgage troubles – before it is too late.

Contacting a highly knowledgeable foreclosure attorney when you first start having trouble paying your mortgage can prevent or stop the foreclosure process altogether. Early contact is one of the most important steps you can take to save your home from foreclosure, sale, and the loss of your home.

The Atlanta Journal-Constitution reports that Georgia mortgage-holders now have the 5th highest delinquency rate in the nation according to TransUnion. Moreover, the Georgia foreclosure process is very fast. Georgia permits both judicial and “power of sale” foreclosures. In Georgia, the “power of sale” refers to a clause in most mortgages allowing the lender the right to sell the property outside the court system. This means your lender can schedule the sale of your home as soon as you are in default – and does not have take you to court. You may be able to stop the foreclosure by paying off your delinquency, but your lender is not required to reinstate the mortgage.Having an experienced Atlanta, Georgia, loan modification attorney involved at the start – before you receive a notice of default - is crucial for several different reasons.

A Georgia mortgage attorney can ensure that you are taking prudent steps to save your home. Once you have started experiencing delinquent mortgage payment issues, you may receive phone calls and solicitations from supposed “government” or other “type agencies” claiming to be able help you for a fee. An experienced attorney can work on your behalf and ensure that these are legitimate companies have your best financial interests in mind. The fact is, many of these companies are frauds and make a bad financial situation even worse.

Further, an experienced Georgia real estate mortgage attorney can help you work with your lender to renegotiate your mortgage and avoid foreclosure. We have been working with many homeowners across Georgia and understand that banks do not actually want to foreclose on your home – instead they want to minimize their financial losses. This means that the banks may be willing to work with you if there is a chance you may be able to continue paying your mortgage or re-work your loan. Because we understand the real estate market, we can use our experience to negotiate with the bank on your behalf. Often homeowners working alone find it difficult to get past the customer service department to reach a staff member who can actually negotiate with them.

If you simply cannot afford your house any longer, we can help you explore alternatives to foreclosure. Our firm welcomes the opportunity to be of service to you. Please feel free to call our Firm at (404) 467-8611 or toll free at 1-877-412-3267, to discuss your options. You can also send us a message through our confidential Web Site form. The Adams Law Offices is conveniently located in the Buckhead section of Atlanta, Georgia near the intersection of Piedmont and Roswell Roads.

As Atlanta, Georgia, real estate fraud lawyers, we have seen a rise in the “house flipping” trend over the last several years. House flipping is the process of buying a home, renovating the home, and then selling it for a substantial profit within the course of a very short time. Often, an investor is able to make money from flipping a house by fixing less costly cosmetic issues - such as carpeting, painting, and appliances - and then selling the house at a significantly higher price.

If you are an investor interested in house flipping, you should contact a knowledgeable real estate attorney who can help with all aspects of your real estate transaction. Recently, several house flipping schemes aimed at potential real estate investors have come to light, exposing housing management investment companies and banks working together to defraud potential investors.

In one scheme, a Georgia Bank came under fire after the revelation that one of its co-founders and a chief executive was heavily involved in making fraudulent loans. Through the Bank, chief executive made short-term loans to inner-city investors interested in flipping house in low-income neighborhoods. Because the investors often did not have easy access to loans from traditional banks, the company charged hefty fees and exorbitant interest rates.

Another scheme in involved a European man who enticed flippers – for a substantial fee – with cheap properties and access to expert renovators. He then sent his investors to the Georgia Bank to obtain loans to buy his properties. Allegedly, kickbacks were paid to the loan officers at Georgia Bank who approved the funding. The European man is now in federal custody on charges of fraud. The European Man and the unnamed loan officer made money, but many of the properties were never renovated and the investors lost their money.

These flipping schemes have created additional problems in some of Atlanta’s most needy neighborhoods – with newly flipped homes sitting vacant and attracting criminals and squatters. Although many flipping schemes have come to light over the last several months, The Wall St. Journal reports that home flipping is making a comeback with investors buying up foreclosed properties. These flippers need “cold cash, lots of local-market knowledge and strong nerves.”

The best advice for real estate investors interested in getting involved in the flipping market is to do your homework, be wary of schemes, and be willing to take some risks. Contact a dedicated Georgia real estate fraud attorney who can help you determine if the property you are interested in is suitable for flipping. However, if you believe, you have been a victim of house flipping fraud; please contact The Adams Law Offices immediately to discuss your case.

Continue reading "THE ATLANTA, GEORGIA, REAL ESTATE FRAUD LAWYER TO THE ATLANTA, GEORGIA, REAL ESTATE INVESTOR – “BE WARY OF HOUSE FLIPPING SCHEMES”" »

As Atlanta, Georgia construction litigation and home defect lawyers, we see many clients who believe they have no recourse for construction defects discovered a year or more after project completion.

Many builders claim – and homeowners believe – that Georgia’s mandatory one-year warranty period excuses them from responsibility for defects that are discovered or occur after the one-year period has lapsed. Fortunately, this is not the case.

In most situations, the warranty does not preclude a homeowner from filing a claim against a builder or contractor based on construction defects. In fact, one of the most common ways to be compensated for a construction defect is to file a “breach of contract” action. A breach of contract may occur when a builder fails to construct a home in a “workman-like fashion”. Types of defects include, but are not limited to, the use of substandard building materials, non-compliance with industry standards and incomplete or poorly completed work.

If you discover one of these defects in your home, you may have up to six years, sometimes more, to file a construction defect claim based on breach of contract. O.C.G.A. § 9-3-24. By filing a breach of contract action, you may be able to recover the financial losses you have experienced because of the construction defects in your home and be compensated for any additional costs to repair your home.

The fact that the one-year warranty period has lapsed should not affect your claim. Further, in many cases the warranty will not be applicable if the home is defective from the start. Thus, the existence of a warranty will not bar you from pursuing damages against builders and contractors.

Homeowners need to be wary. Many builders will try to use the warranty as a way to deny responsibility for defects and discourage homeowners who have discovered significant construction defects from contacting an experienced Georgia construction defect attorney. If you believe your Georgia home has construction defects or significant problems, you should have it inspected immediately by an experienced architect or engineer. Further, hiring an experienced Georgia construction lawyer is a critical step in protecting your rights as a homeowner.

Our firm welcomes the opportunity to be of service to you. Please call our Firm at (404) 467-8611 or toll free at 1-877-412-3267, to discuss your options. You can also send us a message through our confidential Web Site form. The Adams Law Offices is conveniently located in the Buckhead section of Atlanta, Georgia near the intersection of Piedmont and Roswell Roads.