Georgia is one of those states - only attorneys are legally supposed to close real estate transactions - with very limited exceptions. Yet, non-attorney entities constantly close deals here in Georgia.
There are several other states that define real estate closings as the practice of law - South Carolina, Alabama, North Carolina, New York, Connecticut and Massachusetts. The common justification in these jurisdictions is that the state regulates the bar and can police unscrupulous practitioners. The Georgia Supreme Court has held that closing attorneys have a duty to the public. While it is left unsaid in the opinion, the fact is that real estate as a form of property is central to the well being of our economy - and has been since the founding of our country. You don't have to look to far to see how failure to properly safeguard property rights can impact all of us.
In return for this exclusive franchise, attorneys must look to maintain the public records so that they accurately reflect the interests of persons in real estate. This often means delaying a closing to be certain that old defects are cured. Since attorneys hold the keys to the courthouse, they have a higher legal obligation to make sure that the rights of the various parties to closing are properly handled.
If you are considering using a notary service to close a transaction in Georgia, just remember that aiding the unauthorized practice of law (UPL) is as much of a crime in Georgia as committing the crime itself. UPL is a misdemeanor punishable by up to a year in jail or a fine of $1,000.00 or both.
Given the amount of money involved in the financing, purchase and sale of real estate, who would you rather have supervise your deal - an attorney familiar with the local property records and real estate laws or a notary public that works for an out of state closing company?
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