GA Section: Finance + Closing
What phrase or words are required on a deed and are considered an "act of conveyance"?
"Hereby conveys"
Which of the following makes a valid deed?
A written document containing all of the required elements and adhering to all document formatting requirements
The ______ clause is also known as a due-on-sale clause.
Alienation
What is the responsibility of a Georgia closing attorney?
Calculate prorations
What does GAFLA require regarding late fees?
They must be clearly specified in loan documents.
When a borrower fails to cure any default within 120 days of the lender's original notification, the lender may begin the foreclosure process. In Georgia, borrowers may redeem the property ________________.
Up to five days before the scheduled foreclosure sale
How's the Georgia intangible tax computed?
tax is based on the loan amount and is $1.50 per each $500 or fractional part thereof with a maximum of $25,000.
In Georgia, how many years do we have to go back to trace the chain perfectly, with no gaps in ownership?
50 years
Andrea's lender has notified her of its intent to foreclose. Her loan is secured with a security deed. What rights does she have to redeem her property?
Andrea can cure the default and reinstate the loan.
The Georgia Residential Mortgage Fraud Act targets _________.
Anyone involved in the mortgage lending process who willfully misrepresents information
Who's the mortgagor in a mortgage?
Borrower
GAFLA targets predatory lending by prohibiting _____ ?
Excessive late fees and financing of credit insurance
A holographic will is a will that is ___________.
Handwritten
What provisions are standard when any security instrument is used but are included in the promissory note rather than the security instrument?
Late charge
There are several essential elements to a deed. Which of the following must be included in a deed?
Legal description
In a deed of trust, who is the beneficiary?
Lender
The ______ clause in a deed of trust allows the lender to foreclose non-judicially.
Power of sale
The document that describes the loan amount and the terms for repaying and is attached to a security instrument is called the ______.
Promissory note
In Georgia, upon what amount is the transfer tax calculated?
Sales Price
When a borrower has paid off the loan, how is the release handled if the security instrument is a mortgage?
The lender executes and records a satisfaction of mortgage and returns the note to the borrower.
Who holds the promissory note while it's being repaid?
The obligee
What's the transfer tax on a Georgia home sold for $215,000 with a mortgage loan of $180,000?
The transfer tax is .001 (.1%) of the sales price, so $215,000 x .001 = $215
One difference between a judicial foreclosure and a non-judicial foreclosure is that with a non-judicial foreclosure, ______.
There is no statutory right of redemption
What is the trustee's role when a deed of trust is used to secure property for a loan?
To hold legal title to the property on behalf of the beneficiary until the loan is repaid
Jacob lost his job in an economic slump and is behind on his mortgage. Georgia is a non-judicial foreclosure state. Which section of his security deed gives his lender to right to sell the property if he defaults?
Transfer of Rights in Property
In Georgia, what closing costs is usually paid by the seller?
Transfer tax
What is a statutory right of redemption?
he right of a borrower to redeem the property by paying amounts owed plus costs, even after the foreclosure sale
Why is the recording of a deed so vital?
It protects new owners from former sellers claiming they still own the property.
Which lenders are covered by GAFLA?
Loan brokers, servicers, and purchasers or assignees
Which clause is standard in a deed of trust or security deed and affects the foreclosure process that can be used if the borrower defaults?
Power of sale
In Georgia, the three types of finance instruments that can be used when financing a real estate purchase are the note with mortgage, note with deed of trust, and note with ______.
Security deed
Which of these features is shared by the mortgage, the deed of trust, and Georgia's security deed?
The borrower is required to maintain the property and pay property taxes and insurance.
Which of the following is a true statement about when a promissory note is sold?
The promissory note is endorsed to the new owner of the loan.
In Georgia, lenders use one of two methods to release the security deed when the promissory note is paid in full. One method is to simply note on the original deed that it's being released. What's the second method?
prepare a Cancellation of Debt Secured by Deed form