I have received a tremendous amount of feedback to my most recent posting concerning the revised GAR contract mandating Seller convey title by way of Limited Warranty Deed as compared to the traditional General Warranty Deed. Please see my April Newsletter posting for a fuller discussion on the revision. That said, the overwhelming response has been along the lines of “What can I do?”
First, please remember I said “relax, we go it covered,” and the best way to cover in my opinion is via a policy of ALTA Enhanced Owner’s Title Insurance, which has always been available and placed in the vast majority of closing, at least closings handled by way of my office and other lawyers who have handled residential closings for a considerable length of time.
Second, I foresee contracts involving a traditional Buyer and Seller, as opposed to those involving a bank or corporation, containing a special stipulation whereby the parties agree title will be conveyed by a General Warranty Deed.
Third, I can see the possibility where some contracts call for the Seller to pay for the policy of ALTA Enhanced Owner’s Title Insurance in order to fill the gap created by the recent GAR contract revision mandating conveyance by Limited Warranty Deed. This is common practice in some states, and there is no Georgia law requiring one party versus the other pay for the policy of title insurance. It’s a negotiated deal point.
I’m sure there will be other consequences of this revision, and we’ll all have to wait and see how it takes shape. But, in the meantime, I wanted to keep everyone abreast of what I’m seeing and hearing and my thoughts on it.
As always, please call us if you have any questions.
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