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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" »

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" »

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 construction litigation attorneys and Atlanta Business attorneys alike, I know that one of the most important tools for contractors and subcontractors looking to protect their rights and ensure payment on a building or construction project is a lien. I also recognize that nothing is more frustrating to a new homeowner or property owner than an improperly filed lien, or an unexpected lien filed by a subcontractor after the property owner believes everyone has been paid.

The Georgia Legislature has recently made subtle but significant changes to the lien laws in Georgia. These changes state when and how a lien must be filed, how it can be removed, and how the lien may be enforced.

Several years ago, the law was changed to state that only attorneys may file liens. However, even Georgia real estate and construction attorneys may not be familiar with these changes and the various statutory requirements and “hoops” one must “jump through” to have a valid lien on file in the property records. Consequently, it is very important to consult Atlanta Construction Lawyers very familiar with lien laws in general, and the new changes in particular, if you are a contractor, subcontractor, or supplier looking to protect your rights, or if you are a property owner looking to challenge a lien.

In this ever-changing real estate and construction market, it is increasingly important to protect your hard work and your real property investment. This is why you must choose Atlanta real estate, construction, and business attorneys who understand the complexity of these revised lien laws and who can advise you on how to protect your business, your hard work, as well as your investment.

The Adams Law Offices has been at the forefront of the revised lien laws and the new Georgia construction arbitration statutes as they relate to contractors, builders, and homeowners alike. Our Firm of Atlanta construction attorneys specialize in liens, the “Right to Repair Act,” the new Georgia construction arbitration statutes, procedures and laws.

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Everyone knows that times are tough for homeowners right now, especially here in the Atlanta, Georgia area where there are unprecedented amounts of foreclosures. As a real estate lawyer in Atlanta, I have certainly seen a dramatic change in my own practice. Until fairly recently, I was able to help many clients become homeowners by reviewing and writing contracts and agreements for their new homes. Unfortunately, a large part of my real estate practice has now shifted to helping homeowners with financial problems avoid foreclosure by negotiating with the banks and lenders that hold their mortgages. In fact, we are seeing remarkable and unprecedented times as banks and lenders are in trouble, confused about where their institution will end up next and with no viable help from the government.

I believe that part of the problem is that some homeowners don't realize that there is a foreclosure process -- and that it offers several opportunities to work things out with a lender. Banks don't like to foreclose because they often lose money on foreclosures, and because maintaining and selling homes is not really part of their business. They are open to working with you to keep your payments current, especially if your financial problems are temporary. There several ways banks and lenders are engaging in this loan workout process as the banks and lenders know that getting something is better than nothing. They oftentimes will forestall payment requirements, work out different interest rate percentages, mortgage loan types and terms.

If you are behind on your mortgage payments in GA, you will get only get certified letters and maybe phone calls. If your having trouble paying your mortgage or have already missed payments, it is well worth the money to hire an experienced attorney to stall or re-negotiate your loan terms and the before the bank or lender begins the foreclosure process. At any point during that time, an experienced real estate loan workout attorney can call your bank or lender, explain your situation and ask about your options. You may be able to get a temporary break from payments, refinance or supplement partial payments with a loan. Even after foreclosure proceedings have started, in this unprecedented market and time, are likely still be able to have an experienced attorney negotiate with your former bank or lender to re-instate your mortgage or stay the official proceedings of removing you from your home.

Continue reading "BANKS AND LENDERS WANT TO WORK WITH YOU AS GEORGIA MORTGAGE CRISIS WORSENS – THE BANKS ARE IN TROUBLE TOO – MAYBE MORE THAN YOU KNOW" »