CHRISTINE NORSTADT [email protected] Christine Norstadt is an attorney at Pursley Friese Torgrimson, LLP, where she focuses on commercial real estate transactions and litigation. She is also a Contributing Editor for the network Whose Signature Is It Anyway? E The In Execution of Real Estate Documents xecuting a legal real estate document may seem like the easiest part of the deal – after all that time spent negotiating, performing due diligence. Now it’s finally closing time; however, so often parties do not properly execute documents, leading to problems down the road. This article will address some of the most common errors in document execution, beginning with one of the most confusing – the proper execution of deeds. Signatures Required on a Georgia Deed to Land If the deed is not properly executed, it is not acceptable for recording. Per Georgia law, a “deed to land,” which includes warranty deeds, quitclaim deeds, deeds to secure debts and easements, must be an original document, signed by the maker, attested by an officer as provided in O.C.G.A. 44-2-15 and attested by one other witness. To attest is to witness and subscribe to the execution of a written instrument at the request of the one making. The “maker” is the one making the deed or granting the property. Once before the notary, the person signing the document must ensure that the notary perform the correct “notarial act.” Notarial attestation is a similar act, but legally distinct, from a notarial acknowledgement. As noted above, an attestation requires the notary to witness the person signing the document and subscribe his name and seal to evidence such fact. Some key words that denote an attestation are “Signed, sealed and delivered in the presence of ” appearing above the notary’s signature and other witness’ signature, or, in a notarial certificate attached to the deed, the words “signed in my presence.” The description of the notarial act must make it clear to the reader that the notary whose signature and seal appear below those words actually witnessed the maker executing the deed. On the other hand, an acknowledgment requires the notary to confirm that the maker willingly executed a document, but it does not necessarily mean that the notary saw the maker sign it. The maker, after appearing and identifying herself to the notary, could tell the notary that she signed, and the notary will issue the acknowledgment certificate. Therefore, an acknowledgment certificate is not acceptable to satisfy the attestation requirements under Georgia law and is not acceptable for purposes of recording a “deed to lands” in Georgia. Practice Tip: Georgia notaries do not typically use a separate notarial certificate attached to a deed. Instead, the notary usually signs on the line designated for the notary and stamps or seals the document underneath the line. In other states, such as California, notaries complete a separate certificate which is then attached to the document to be recorded. In California, the more common notarial act is an acknowledgment, so it is particularly important to be aware of the Georgia attestation requirements when transacting with an out of state party who might use a California notary. It is acceptable in Georgia that the notary attaches its own certificate, but that certificate must satisfy the attestation requirements for deed recording, meaning that a California acknowledgment certificate is not acceptable. The California notary will need to complete another type of certificate which states that the notary actually witnessed the party executing the document. It is a small detail with a potentially significant effect on the transaction. Finally, the “other witness” must attest to the maker’s signing the deed and subscribe his name to be evidence of such fact. The other witness cannot be the Note that there are two parties who must attest to the maker’s signature. The witnessing requirement for deeds changed within the last few years, and this is the area where real estate attorneys most often see problems which require re-execution of deeds, which can cause delays to a deal and headaches to the parties involved. An “officer as provided in O.C.G.A. 44-2-15” must witness the deed. That Code Section provides for several options of persons who may attest to the execution of a recordable instrument, including a judge, a magistrate or a clerk of superior court, or a notary public, which is the most common officer to attest to deeds. Georgia notary publics may attest to instruments within any county in Georgia; that is, even though a notary may be commissioned in Cobb County, he or she may attest to a deed made in Fulton County. By contrast, a clerk of superior court may only attest to instruments made in the clerk’s county. 20 THE NET WORK | MAR2017 YOU NEED TO KNOW Why do you need a driver’s license to buy liquor when you can’t drink and drive? same person as the notary. While it is not required, it is good practice to include a line for the witness to print his name so that the witness can be identified. Practice Tip: If there is more than one party making the deed, such as a reciprocal easement agreement, or a transaction with multiple grantors selling real property: each “maker” should have its own signature block with its own attestations by a notary and other witness in order to satisfy Georgia law. Practice Tip: The notary and other witness cannot “witness after the fact.” That is, the maker cannot send the deed to his attorney’s office and ask someone at the office to witness and notarize it. The notary cannot lawfully make the statement that she witnessed the maker executing the document, nor can the other witness, even if the maker verifies that he executed the document. Quick Checks That Make All the Difference (These do not only apply to real estate documents to be recorded, but are important in any agreement.) • Fill in all the blanks and attach exhibits. (Examples -the date of the agreement, the date that the agreement was signed, the printed name of the parties executing the documents (as opposed to just the party’s signature), and the parties’ addresses for notices to be given under the agreement. When a document has a blank or a missing exhibit, it can cause problems for the parties down the road. • Is the correct party signing? If the agreement is intended to be in the name of ABC, Inc., then the agreement itself and the signature block should reflect that ABC, Inc. is executing the agreement (e.g., ABC, Inc. executed by Jane Smith, as President of ABC, Inc.) Compare this to Jane Smith signing individually without any reference to ABC, Inc. If the agreement and signature block are inconsistent, it could call the parties’ intent into question or possibly create a title problem in the future. If in doubt about the proper execution of a document, particularly one that needs to be recorded, consult with the closing agent, title insurance agent or your attorney. After all your work negotiating the deal, you want to be certain you are documenting it correctly! I Head of State vs Head of Government t’s mostly a linguistic difference, since the powers of absolute monarchs depended on their place and time in history. A king is pretty much any male hereditary ruler. Czar is basically a Russian equivalent to emperor. Emir is Arabic, roughly equivalent to prince (not king, which in Arabic is Malik), but it can also mean commander or general. Sultans were originally rulers officially sanctioned by the Islamic Caliph to rule a certain area without claiming the entire caliphate (so it’s sort of like a governor or viceroy) but they were for the most part functionally kings. In western languages, the words are generally descended from ancient Latin and German terms. Emperor comes from the Latin Imperator and Czar, Kaiser, and Tsar are all derived from the title Caesar. The Latin word for King was Rex and from that we get the Spanish Rey and French Roi and from the French Roi we get the English word Royal. The word King has Germanic roots and is related to König in modern German. The term Dictator comes from Latin. Also, depending on titles one could be both a King and an Emperor. For example, Charles V was both King of Spain and Holy Roman Emperor though inheritance. Victoria was Queen of England and Empress of India at the same time since she ruled over both nations. The CIA’s World Factbook defines a head of state as an individual who represents a government in a symbolic fashion but does not oversee the daily activities of a country. A head of government, on the other hand, oversees daily executive and legislative activities of a country. In America, the President is both the chief of state and the head of government, but in many countries, the two offices are divided. In modern times, the main function of the head of state is to serve as an individual human representative for the nation as a whole, and the office is often non-political. Heads of government are administrators that wield government power and handle the management of the country. When most Americans think of things our president does as part of his job, we think of the duties of a head of government. In many countries, the actual head of state has little real power, unless he is also the head of government. In the UK, for example, the head of state is the king or queen, and the head of government is the prime minister. Technically, the prime minister is appointed by the monarch to administer the country, but the monarch always appoints the head of the party who wins the most votes in the parliamentary election. Technically, this isn’t a requirement, but no one really knows what would happen if the queen decided to ignore an election and appoint someone of her own choosing. France is somewhat of an anomaly; the head of state is a president who is elected to five-year terms (changed from seven years in 2001), and the head of government is the prime minister, who is nominated by the legislature and appointed by the President. When the president doesn’t have a majority in the legislature, he or she is forced to appoint a prime minister from an opposition party, and since France’s office of president has some political power of its own, this split between the head of state and the head of government leads to all sorts of complicated political power struggles. The head of state usually does not hold any type of executive or legislative role, he/she holds a symbolic/ ceremonial role (e.g., a symbol of national identity) – and is often seen as a person who is above politics. A head of state helps promote unity and pride. The ability to pass legislation is left in the hands of the head of government. Chiefs of state are always given much more elaborate treatment when they travel than heads of government are, even though they often have far less power. The head of government oversees the operation of the civil service and government agencies and appoints members of the government. In a presidential system, a single individual holds both titles and does both sets of duties. This is seen in the United States, South America and some African countries. In a parliamentary system of government (such as in the UK, Germany, Italy, Canada, and Japan, among many other places), the head of state and the head of government are two roles divided between two people. The head of state’s role is not to be perceived as advancing a partisan agenda, but as a symbol of continuity; the head of government is just that - the head of the government, the cabinet of ministers, chosen by the ruling party (or coalition of parties) who carry out the implementation of laws and advance a legislative agenda. President Barack Obama meets with then President-elect Donald Trump in the Oval Office on Nov. 10, 2016 British Prime Minister Teresa May MAR2017 | THE NET WORK 21
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