FULTON COUNTY TAXES ARE OUT!

Fulton County property tax bills have been mailed to some properties, and the rest will be coming out by October 15th. The due dates for 2009 have been extended to 11/30 for City of Atlanta and 12/15 for Fulton County.

If you are closing a property in Fulton County, it will help both buyers and sellers if you make sure that the Fulton County taxes are paid at closing. This may require an update to short-sale HUD’s and REO HUD’s that have already been prepared and/or approved.

Do not assume that the buyer’s new lender will pay these bills, because the due dates are much later than usual, and the lender expects the bills to be paid already.

The bills from Fulton County are all marked as “temporary”, which gives the Tax Commissioner the right to issue supplemental bills later on. Therefore, the title insurance issued to the new buyer and lender will still contain an exception for 2009 taxes.

Keep in mind that most short sale sellers will be uncooperative and/or unavailable when the supplemental bills come out, and REO sellers do not assume any liability for taxes that come out after the closing.
Make sure that your buyer understands this and assumes the responsibility for paying any supplemental bill.

Information presented courtesy of Leigh Clack, Attorney
Neel & Robinson, Attorneys at Law LLC
22 Lenox Pointe, Atlanta, GA 30324
lenox@neelandrobinson.com
404-705-3690 fax 404-705-3697

A real estate transaction only occurs when a seller can convey clear and marketable title to a piece of property to a buyer.  Sounds pretty easy, huh?  Well, there’s a lot that the closing attorney must do before validating clear and marketable title.  This is an incredibly important step because if you were to close on a home without owners title insurance only to find out later your property is stuck with previously unknown encumbrances or past claims, guess who has to pay?  You.  Attorneys overall do a great job of validating title, but we’ve heard the one in a million stories that will make you think.  Your lender will most likely require lender’s title insurance, but don’t forget about owner’s title as well.  It is vital protection that can really come back to haunt you in the event you don’t secure it at the closing table.

In a continued effort to provide you with relevant information, Leigh Clack with Neel and Robinson (lenox@neelandrobinson.com)  reveals what all is involved in a title search.  If you have further questions, feel free to contact us or Leigh Clack directly.  She can be reached by phone at (404) 705-3690.

WHAT IS CHECKED IN A TITLE SEARCH?

1. Chain of title = each deed from seller to buyer
   1. Legal description
   2. Signatures from all owners
   3. Proper execution (witness, notary, corporate seal for company)
   4. No “breaks” in chain = buyer who does not sign as seller later
   5. Most recent deed should match seller’s name on sales contract
2.  Property taxes
   1. Enforceable for seven years
   2. All Georgia properties have county taxes; some also have city taxes
   3. Not removed by foreclosure or bankruptcy
   4. Interest and penalties due if paid late
   5. Homestead exemption and other discounts – determine if still applicable for current year
   6. Some cities/counties also collect water, garbage, other utilities
3.  Open mortgages (security deeds)
   1. Current owner’s mortgages – confirm open – get payoffs
   2. Previous owner’s mortgages – confirm paid – get releases
4.  Liens and judgments
   1. Liens for materials and/or labor are specific to each property
   2. Judgments against owners in chain of title attach to any property owned by that person
   3. Valid for seven years from filing – can be refiled to extend
   4. Common names may have judgments that are not theirs – need to confirm with social security numbers and affidavits
5. Income tax liens
   1. Valid against all property of taxpayer
   2. Federal tax liens (IRS) valid for ten years – state for seven
   3. State liens removed by foreclosure – federal must be given notice and right to redeem
6.  Pending lawsuits and divorces
   1. Lawsuits affecting subject property must be resolved
   2. Other lawsuits – confirm no judgment entered yet
   3. Divorces – must be resolved or have all parties (spouses and their attorneys) agree to the sale
   4. Probate/trust/estate/guardian issues – determine who can sell

Unless you’ve been living in a cave for the last 30 days, you probably have heard about the Economic Stimulus Bill that was passed and signed into law last month by President Obama. If you have been cave dwelling, click here.  We here at The Peters Company were most concerned with the First Time Homebuyer’s Tax Credit.  We had a mediocre tax credit previously in place, which basically gave the first time homebuyer an interest free loan of $7,500 that they paid back over a 15 year period.  That has been blown up, replaced, and upgraded.  Although it wasn’t as good as we were hoping for, the new plan makes significant progress over the previous credit/loan program.  We thought it might be beneficial to outline the differences for you.  If someone you know is on the fence about buying their first home, now is the time to share this with them.  We are entering the busier Spring real estate season, and there will be some great homes hitting the market over the coming months.  This credit lasts until December 1, 2009.  The high inventories and low rates are now only helped by an $8,000 tax credit, which by the way you don’t have to repay.  Check it out, and let us know if we can help in any way.

FIRST-TIME HOMEBUYER TAX CREDIT
As Modified in the American Recovery and Reinvestment Act
Major Modifications Italicized
February 2009

Chart courtesy of Leigh Clack at Neel & Robinson, Attorneys at Law, LLC.  Contact Leigh at lenox@neelandrobinson.com.  She is an excellent closing attorney.

On February 13th, President Obama signed the Stimulus Bill into law.  Is this what we’ve all been waiting for? Well, as a real estate agent, if falls a little short of what I was hoping for, but there are some clear benefits to you in the new plan, and I felt like it would be helpful to share. Thanks to Michael Pemberton, a Certified Financial Planner, who helped us navigate the bill. Here’s what he thinks is important to note:

• AMT: There is a $70 billion provision to keep the alternative minimum tax from slamming about 24 million taxpayers.

• Car Buyers: Anyone who buys a new car in 2009 gets to deduct the sales tax. To qualify, buyer must make less than $125,000 individually or $250,000 jointly.

• Home Buyer Tax Credit: First-time homebuyers who purchase this calendar year get an $8,000 tax credit which does not have to be repaid like a similar measure last year. This phases out for people making more than $75,000 individually or $150,000 jointly. “First-time homebuyer” is defined as someone who has not owned a home for the past three years.

• Income Tax Credit: Anyone making $75,000 individually or $150,000 as a family will get refundable tax credit up to $400 per person or $800 per family.

• Paying for College Tax Credits: Individuals making less than $80,000 or families making less than $160,000 can get up to $2,500 in tax credits for college tuition. 40 percent ($1,000) of the credit is refundable. Cost: $13.9 billion over 10 years.

Michael Pemberton is with Russell and Associates. 1050 Crown Pointe Parkway, Suite 1000, Atlanta, GA 30338, mcpemberton2000@yahoo.com, Click the link below to check out our reviews on Kudzu.com! http://www.kudzu.com/merchant/reviews/17586067.html. 

The emails have been racing in with everyone wanting to contribute content.  Here’s a great Q&A session provided by Scott Meldrum at Countrywide Home Loans which is a great resource for all your real estate questions:

At the beginning of every year, we send a letter out to our clients we represented from the previous year.  Our purpose of the letter is twofold.  First and foremost to thank them for giving us an oppotunity in an ocean full of real estate agents.  Secondly, we always remind our past clients about the importance of filing for the Homestead Exemption on their primary residence.  This year’s letters have already gone out, but I wanted to post some helpful information and links in the event that you have purchased a home in the last calendar year.  

As you know, buying a home can be a huge tax advantage, so we want to be sure that as a new homeowner you know you may be eligible for a Homestead Exemption.

Georgia allows homeowners to claim a Homestead Exemption as a tax benefit that could amount to considerable annual savings.  To qualify the homeowner must occupy the residence and file at the county Court House or Tax Commissioner’s Office in person, by mail or on the web, depending on the county in which you reside.  Filing deadlines do vary by county, but we encourage you to do this as soon as possible.

For your convenience, we have attached the contact information below of most major Georgia county Tax Commissioner offices, so that you may file for exemption quickly and easily.  If your county is not listed, please visit www.georgia.gov/00/topic_index_channel/0,2092,4802_5083,00.html to find your county’s tax office information.  If you have any questions about the homestead exemption and its benefits, we encourage you to talk with your accountant.  Many thank to Leigh Clack with Neel and Robinson for providing these updated links and contacts.

Fulton County – deadline is April 1, 2009                   404-612-6440

http://www.fultonassessor.org/Forms/HtmlFrame.aspx?mode=content/Exemptions.htm&taxyear=2007&ownseq=1&jur=&LMparent=180

DeKalb County – deadline is March 1, 2009 (file by Friday, 2/27)  404-298-4000

https://dklbweb.dekalbga.org/taxcommissioner/index.asp?pg=homestead#applications

Gwinnett County – deadline is March 2, 2009            770-822-8800

https://ssl.gwinnetttaxcommissioner.com/Property/information/TypesOfExemptions.aspx

Cobb County – deadline is April 1, 2009                     770-528-8600

http://www.cobbtax.org/Forms/HtmlFrame.aspx?mode=content/Exemptions.htm&LMparent=189

Clayton County – deadline is April 1, 2009                770-477-3311

http://www.co.clayton.ga.us/tax_commissioner/exemptions.htm

Cherokee County – deadline is April 1, 2009              678-493-6122

 http://www.cherokeega.com/ccweb/departments/assessor/

Henry County – deadline is April 1, 2009                    770-288-8180                 

http://www.co.henry.ga.us/taxcommissioner/PropertyTaxExemptions.shtml

Forsyth County – deadline is March 1, 2009 (aim for 2/27)     770-781-2106 

http://www.forsythco.com/DeptPage.asp?DeptID=25&PageID=299

Douglas County – deadline is April 1, 2009                  770-920-7272

http://www.celebratedouglascounty.com/tax/

Fayette County – deadline is March 1, 2009 (aim for 2/27)   770-461-3652

http://www.fayettecountytaxcomm.com/HOMESTEA.html

Paulding County – deadline is April 1, 2009                 770-443-7606

http://www.paulding.gov/gov/taxcommissioner.asp

As one real estate agent or a team of real estate agents or even as a company of real estate agents, there’s certainly things we can do to impact this market.  I think the most important thing is that we have a positive attitude and remain opportunistic, work harder and smarter to ensure that our clients are receiving the highest level of service possible in a time when there’s a lot of finger pointing and shoulder shrugging.  Perhaps one of the best things we can do as real estate agents is pool our voice and become better advocates for our industry, an industry that affects virtually every family in the nation.  One of the benefits of being a part of the National Association of REALTORS® is that as one we are rather quiet, but as a group of REALTORS®, we have a tremendous voice.  As further evidence of the NAR’s committment to furthering our industry, the organization has put forth a 4 Point Plan aimed at “tweaking” the previously passed Emergency Economic Stabilization Act.  I believe that Act was monumental at a time when we all needed stability, but as time passes, there appears to be weaknesses that might miss the mark in truly impacting in the areas originally intended.  Lesley and I support the National Association of REALTORS®’ plea for more.  NAR has urged Congress to include the following provisions in any future legislation as part of this 4 Point Plan:

1. Make the $7500 tax credit available to all purchasers and eliminate the repayment requirement.  The credit’s limited availability and required repayment terms have severely limited the credit’s appeal to potential homebuyers.  As a result, the credit has not been widely used or proven effective at stimulating sales. 
2. Make the 2008 FHA, Fannie Mae and Freddie Mac loan limits permanent.  New rules for 2009 would significantly reduce the FHA, Fannie Mae and Freddie Mac loan limit from their 2008 levels. Now is not the time to limit the availability of affordable mortgages. 
3. Get the Emergency Treasury bank relief program back on track by targeting more funds to mortgage relief efforts and increasing efforts to mitigate foreclosures.  Don’t just give the banks unrestricted cash. Make the program work to improve mortgage and housing markets as it was originally intended.
4. Permanently bar banks and banking conglomerates from engaging in real estate brokerage and management.  The banks have proven they have enough to do to simply properly manage their current lines of business.  Do we really want them to manage the home buying process?  Imagine what could have been the situation now if they already had the added ability to engage in real estate sales.

The economic turnaround is, of course, complicated, but there is little doubt that stabilizing the real estate market by shoring up the lending market and finding ways to get money moving in and out is a neccessity.  Stay tuned for updates on how these changes are being accepted and more importantly implemented.

Lesley and I both are  proud members of the Atlanta Board of REALTORS®  I had the pleasure of attending a recent Atlanta Board event.  One of the topics was “What is a REALTOR®?”  Before I became a real estate agent, I just assumed that everyone was considered a REALTOR® if they were in the business.  I would also sometimes refer to these people as Real-a-tors.  It wasn’t until I became a REALTOR® that I really realized what this designation means to me and to the people who utilize my services.  I quickly learned that real-tor is the correct pronunciation, that it is spelled in all caps, always had that circled “R” symbol, and that actually being a REALTOR® was different than being just a real estate agent. 

All real estate brokerage houses don’t require the membership of its agents in a Board of REALTORS®.  Our Keller Williams offices require it with no questions asked.  Now, why would they be so insistant on its affiliates joining? 

1 – Code of Ethics – the REALTOR® Code of Ethics is at the forefront of the REALTOR® designation, and it provides an important difference to consumers.  All real estate agents are required to understand and operate under state mandated licensing laws, but only REALTORS® are held to a higher standard.

2 – Accountability – The Atlanta Board of REALTORS® mitigates disagreements and conflict between its members.  A violation of the code of ethics and a member finds themselves facing harsh consequences such as fines, suspension of Board membership, suspension of MLS access, etc.  This sort of accountability amongst the members creates a self policing that makes all of its members better.

3 – Community – the Board has a long-standing history of supporting the local community. In the past several years, the Atlanta Board of REALTORS® has sponsored building several Habitat for Humanity homes through the Atlanta Chapter.

4 – Awareness – membership in the Atlanta Board of REALTORS® places an agent in one of the most powerful and influential grassroots lobbying efforts in the country related to real estate issues affecting the industry.

5 – Networking and Exposure – by being a member, your listings appear on one of the heaviest searched site for homebuyers in the nation, www.realtor.com.  In addition, through various networking and educational opportunities members are able to promote their business and listings to their colleagues in a professional manner.

These are the top 5 benefits of being a REALTOR® as I see it, and why every agent should seek this designation.  It kind of makes you wonder about those who aren’t members, doesn’t it?  The more pressing question is always, “What’s in it for ME?”  I understand that everything I do and say should probably be followed with a “So what?” 

Here’s what’s in it for you and why you should use a REALTOR®:

Educated students of real estate law who understand the law and work to ensure you have the safest transaction possible.

Ethical leaders who understand and are willing to do the right thing even though it may mean more work on their part.

Community minded people who understand that a home is more than a place to live.

Politically active advocates for the real estate industry, helping to protect all of our investments.

Well connected professionals always searching to expose you to more than the average agent.

Lesley and I would love to show you the benefits of having a REALTOR® on your side first hand.  We want to be the difference maker in your real estate transaction.

If you’ve ever tried to read a Legal Description for a property, you know how difficult it can be to understand.  Legal Descriptions represent the pivotal information in a contract that make it valid because it’s incredibly specific in its physical location.  An address is not a valid legal description in a contract.  You may be interested in finding more information about your property or your neighborhood, and a great place to start is with your legal description. 

At a meeting this morning, we were given a great presentation by Mrs. Leigh Clack, closing attorney with Neel and Robinson, on how you go about figuring out a legal description.  I found it incredibly helpful, and I thought I would share it. 

Here’s a Legal Description:

All that tract or parcel of land lying and being in Land Lot 145, 14th District, Fulton County, Georgia, being Lot 15, Block C, Grant Park Acres, as per plat recorded in Plat Book 235, Page 25, Fulton County Records, said plat being incorporated herein for reference.

123 Hill Street, Atlanta, Georgia 30315

Tax parcel 14-145-9-9-0

Here’s what that means:

Land Lot 145, 14th District:  The county is divided into smaller pieces for mapping and identification purposes.  This is also how deeds are indexed when recording.  This also matches part of the tax parcel.

Fulton County:  Deeds are only recorded in the county where the property is located.  Some properties lie in two counties and those deeds should be recorded in both courthouses.

Lot 15, Block C:   This identifies the exact Lot and Block of the subject property.  There can be multiple Blocks on one plat, so confirm that you have the correct Block first and then find the right Lot.

Grant Park Acres:  Name of subdivision based on the title of the recorded plat.  This name may not appear on an entrance sign, and sometimes a new or different name is actually used to identify the neighborhood (such as “Kirkwood” or “Brookhaven”).

Plat Book 235, Page 25:  Where to find the recorded plat.  Newer plats are available on GSCCCA, but all plats are available at the courthouse.

Address and Tax parcel:  Additional helpful information to confirm that you have the correct property.

Many thanks to Leigh Clack with Neel & Robinson, Attorneys at Law LLC.  You can reach Leigh at lenox@neelandrobinson.com.