Powers of Attorney (POA):
If you cannot attend closing and would like to use a Power-of-Attorney, we will need advance notice prior to closing. We are happy to provide a specific POA for your transaction, or we can also review an existing POA to determine if it meets the requirements for a POA for a real estate transaction in the State of Georgia. We will require a copy of the seller’s valid driver’s license with the POA. The original POA must be delivered to our office at or before closing. The seller will also need to be available during the actual closing transaction in order for us to confirm that the POA has not been revoked and that the seller is alive and well at the time of the closing transaction.
We can mail or e-mail the seller’s closing document if the seller is unable to attend the closing in person and the seller does not want to use a Power of Attorney. We need advance notice in order to prepare the documents and send the documents to the seller prior to the buyer signing and final closing date. The seller may have to execute the documents at their local attorney’s office or at a Title Company location in order to have the documents properly notarized and witnessed. We must have the original signed and properly witnessed and notarized documents before the closing is complete.
Georgia Exemption from Withholding:
Under some circumstances, a nonresident of Georgia who sells real estate located in Georgia may be subject to a Withholding Tax due to the State of Georgia. (Official Code of Georgia Annotated Section 48-7-128 et seq.) If a seller resides in another state at the time of closing, please let us know as soon as possible so that we can send the Seller the form with all of the exemptions from the Withholding Tax to review and complete as appropriate. If the Withholding Tax is due on the sale, we will collect the amount calculated by the seller and provided to us in the form of an affidavit for the closing.
FIRPTA (Foreign Investment in Real Property Tax Act of 1980):
The disposition of a U.S. real property interest by a foreign person is subject to the FIRPTA income tax withholding. We will need to know if the seller is a foreign person and if so, then we calculate and withhold the current tax due to the IRS from the proceeds of the sale.
If the seller is an entity such as a Corporation, Limited Liability Company, Trust, Partnership, etc. , we will require the entity governing documents prior to closing in order to review and confirm who has the proper authority to sign for that entity to sell the property. We may have additional requirements upon review of the entity documents. All Corporations and Limited Liability Companies must be in Good Standing in the state of formation and, if operating as a foreign entity in Georgia, must be in Good Standing in Georgia as well.
All signing parties must bring a valid driver’s license or other form of Photo ID to the closing.