PARA 2213 REAL ESTATE LAW PROJECT – Summer 2019
DUE NO LATER THAN SUNDAY, JULY 14, 11:59 PM
To complete this project you should use the Purchase and Sale Agreement (the “PSA”) included with this assignment. This is an individual project. Each student must work on and produce his or her own product. If you have questions as you complete the assignment, please feel free to contact the instructor; do not consult with other students.
The closing attorney for whom you work asks you to help her prepare for an upcoming closing. You are a closing secretary who must prepare the following:
(1) a Warranty Deed AND
(2) a PT-61 transfer tax form
(1) A sample Warranty Deed is attached at the end of this assignment. You should cut and paste it into a separate Word document and make it recordable for this transaction. Use the facts outlined below to create a deed applicable to this transaction. Be mindful to observe the rules related to deed formatting outlined in the textbook.
(2)(a) To simulate the filing of a PT-61 form for this closing, you should access the Georgia Superior Court Clerks’ Cooperative Authority web site at https://www.gsccca.org/file. Fill in the information necessary to file a PT-61 form, but don’t actually file the form! Note: You won’t need to fill in every field, and you won’t have all of the information (use 18 298 04 027 as the property’s tax parcel ID number). Just fill in what you can given the information below, and print out the preview page (the page prior to submitting the actual form). Remember, don’t actually submit the form!
(2)(b) Also, explain what you would do if this was an actual closing and you had submitted the PT-61 form electronically. In other words, after printing out a hard copy of the PT-61 form you e-filed, what are the next steps? What would you do with the hard copy? Are there any required payments and if so, where will they go? You must type or handwrite your answer onto the paper on which you print out your PT-61 information.
Your project should be uploaded to D2L, appearing in the above order. Please do not include a cover sheet with your project.
The following information supplements the PSA and should be incorporated into your assignment as necessary. If there is contradictory information on this sheet and the PSA, the information on this sheet is controlling.
Closing Attorney Fee Sheet:
Other Information:
Purchase and Sale Agreement
This purchase and sale agreement (the "Agreement") is made and entered into this 1st day of May, 2019 (the "Acceptance Date/Binding Agreement Date"), between Homestead Properties, LLC (hereinafter referred to as "Seller") and Brian L. Corbin and Nancy Corbin (hereinafter referred to as "Purchaser").
Witnesseth:
Whereas, Seller is the owner in fee simple of certain real property located at 56 Apple Orchard Way, Atlanta, Georgia 30309, and more particularly described as follows (the "Property"):
All that tract or parcel of land lying and being in Land Lot 18 of the 5th District, Fulton County, GA being more particularly described as Lot 17, Phase IV, Orchard Ridge Subdivision, as per plat recorded in Plat Book 43, Page 101 of the Fulton County, Georgia public records.
Whereas, Purchaser has offered to purchase and Seller has offered to sell the Property.
Now, therefore, for and in consideration of the above premises, the sum of $1,500 (the "Earnest Money"), paid to Dragonfly Realty ("Listing Broker") within three (3) days of the Acceptance Date, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by each of the parties hereto, it is hereby agreed that, upon all the terms and conditions hereinafter set forth, Seller shall sell and Purchaser shall purchase the Property from Seller.
1. Purchase Price and Method of Payment
The purchase price to be paid by Purchaser to Seller for the Property shall be $179,000 (the "Purchase Price"). Purchaser warrants that Purchaser will have sufficient cash at closing, which will allow Purchaser to complete the purchase of the Property.
2. Title
Seller warrants and represents that (1) Seller is the owner in fee simple of the Property; (2) Seller will convey good and marketable title to the Property; and (3) said title is insurable by a reputable title insurance company at standard rates without exception other than standard printed exceptions and the Permitted Exceptions.
If Purchaser finds any matter in Seller's title which is deemed objectionable by Purchaser, then Purchaser shall furnish Seller with a written statement prior to Closing and Seller shall have thirty (30) days in which to correct any such objection. Seller shall take all steps necessary to correct any such objection. If Seller fails to correct any such objection within said thirty (30) day period, then Purchaser shall have the choice of (1) accepting the Property with any such objection, or (2) declining to accept the Property with any such objection, such choice to be exercised by written notice to Seller mailed within ten (10) days following the end of the above-mentioned thirty (30) day period. If Purchaser declines to accept the Property subject to any such objection, then the Earnest Money shall be promptly refunded to Purchaser, and this Agreement shall be terminated in its entirety except for those obligations and conditions referenced herein specifically surviving closing.
3. Closing
A. The consummation of this transaction shall occur on or before June 29, 2019 (the "Closing").
B. The Closing shall be held in the offices of the law firm of Dewey, Cheatem & Howe, P.C., located at 47 Courthouse Circle, Decatur, GA, 30030 (Dekalb County).
C. Seller shall deliver to Purchaser at Closing the following documents mutually and reasonably satisfactory to Seller and Purchaser (all of which shall be duly executed and acknowledged where required):
1. A certificate restating and reaffirming Seller's representations, as referenced below, with such changes as shall be necessary to make such representations true, complete and accurate in all material respects as of the date and time of Closing;
2. A general warranty deed conveying fee simple title to the Property to Purchaser, free and clear of all liens, encumbrances, easements and restrictions;
3. Evidence reasonably satisfactory to the title company of the power and authority of the individual(s) executing and delivering this Agreement and the instruments and certificates described herein on behalf of Seller to act for and bind Seller;
4. A completed Form 1099-S, or effective equivalent thereof, describing the sale of the Property, and a non-foreign person affidavit;
5. A settlement statement setting forth the source and disposition of the Purchase Price and all other funds transferred at Closing.
D. At Closing, Purchaser shall deliver to Seller the following documents mutually and reasonably satisfactory to Seller and Purchaser (all of which shall be duly executed and acknowledged where required), or shall execute as required by Purchaser's lender:
1. Immediately available funds in the full amount of the Purchase Price, as adjusted pursuant to the terms of this Agreement;
2. A settlement statement setting forth the source and disposition of the Purchase Price and all other funds transferred at Closing;
3. All lender closing documents, and if required by Purchaser's lender, Purchaser shall provide a termite inspection report from a licensed termite inspection agency.
E. In addition to Seller’s personal closing costs and any other costs in this Agreement which Seller has agreed to pay, Seller agrees to pay for the following items in connection with the closing: one-half of the closing attorney’s settlement fee, the entire cost of recording the warranty deed in the public records, and the entire cost of the title examination. In addition to these costs, Seller shall pay the recordation costs for cancellations of any outstanding deed(s) to secure debt and financing statements or other monetary liens or encumbrances applicable to the Property.
F. All association dues and assessments of every nature relating to the Property, if any, and taxes with respect to the Property shall be prorated as of 11:59 p.m. on the day before the date of Closing. For purposes of calculating prorations, Purchaser shall be deemed to own the Property, and therefore entitled to the income and responsible for the expenses, for the entire day upon which the Closing occurs. Prorations favoring Purchaser shall be credited against the Purchase Price, and prorations favoring Seller shall be payable by Purchaser at Closing in addition to the Purchase Price. All prorations shall be based on calendar months and a three hundred sixty-five (365) day year.
G. If tax bills for the current year are unavailable on the date of Closing, taxes will be prorated based upon the bill from the preceding year. The parties agree to re-prorate taxes when the actual tax bill becomes available. This provision shall survive Closing.
H. Unless otherwise agreed upon herein, Purchaser shall pay for closing costs, including State of Georgia transfer tax.
4. Representations and Warranties of Seller
A. Seller is in possession of the Property. Seller is not under contract to sell the Property to any other person or entity. The Property is not subject to any leases or to any claims of tenants in possession. During the term of this Agreement, except for the encumbrance created by this Agreement, Seller shall not convey or encumber any portion of the Property or any rights therein, nor enter into any conveyance, security instrument, easement or other agreement granting to any person or entity any rights with respect to the Property or any part thereof, or any interest whatsoever therein, or any option with respect thereto, without the prior written consent of Purchaser.
B. Seller shall promptly notify Purchaser, in writing, of any event or condition known to Seller which occurs prior to Closing and which causes a material change in the facts relating to, or the truth of, any of the above representations and warranties. At the Closing, Seller shall reaffirm and restate such representations and warranties, subject to disclosure of any changes in facts or circumstances which may have occurred since the date hereof.
5. Commissions
Each party has contracted with a respective real estate broker or agent, and real estate commissions are due as a result of this transaction. The commission shall be paid by Seller and shall be based upon 6% of the Purchase Price, to be divided between Dragonfly Realty (Listing Broker, to receive 3%) and First Choice Realtors (Selling Broker, to receive 3%).
6. No Representations by Seller
Except as expressly set forth in this Agreement, Seller makes no representations or warranties, express or implied, regarding the physical condition of the Property. By execution hereof, Purchaser agrees that neither Seller not Seller's agents or representatives have made, and Purchaser has not relied upon, any representations or warranties of any kind which are not expressly set forth or provided for in this Agreement, and the Exhibits attached hereto, and Purchaser shall acquire the Property in its physical condition as of the date of Closing "As-Is" and with all faults, subject to the terms and conditions of this Agreement and to the express representations and warranties made by Seller herein and the Exhibits attached hereto.
7. Assignment
This
Agreement may not be assigned by Purchaser without consent of Seller.
8. Miscellaneous
A. The laws of the State of Georgia shall
govern this Agreement.
B. Time is of the essence of this
Agreement.
9. Special Stipulations
Seller will provide a one-year home protection warranty from A-1 Home Warranty Company to Purchaser in the amount of $395.
In witness whereof, the parties have hereunto set their hands and affixed their seals the day and year first above written.
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