Georgia rule: a lawyer closes the deal
In many states a title company or notary can run a settlement. Georgia does not allow it. O.C.G.A. 15-19-50 defines conveyancing and the preparation of legal instruments as the practice of law, and In re UPL Advisory Opinion 2003-2, 277 Ga. 472 (2003), holds that "it is the unauthorized practice of law for someone other than a duly-licensed Georgia attorney to close a real estate transaction or to prepare or facilitate the execution of such deed(s)."
So a witness-only closing run by a certified signing agent is prohibited no matter what the lender approves, and preparing a deed is not a ministerial act. An attorney "participating by telephone" does not cure it: Formal Advisory Opinion 00-3 rejects telephone participation, requiring direct and constant supervision with the lawyer in control from beginning to end.
Video closings
Formal Advisory Opinion 23-1 permits a lawyer to conduct the closing by video conference, "so long as the lawyer is in control of the closing process from beginning to end," treating video presence as equivalent to physical presence. This modified the older physical-presence rule. The lawyer still may not use video presence to delegate duties to a non-lawyer, such as handing the closing to a paralegal on the call, and the opinion applies to purchases as well as refinances.
The good funds law
O.C.G.A. 44-14-13 provides that "a settlement agent shall not cause a disbursement of settlement proceeds unless such settlement proceeds are collected funds." The exceptions are cashier's checks of federally insured institutions, checks drawn on Georgia attorney or real estate broker escrow accounts, government checks, and ordinary checks only "in an aggregate amount not exceeding $5,000.00 per loan closing."
So a buyer's $7,500 personal check exceeds the exception. A personal check is not automatically collected funds, and the law is not limited to cash transactions.
Title examination and title insurance
Policies are issued on the basis of a title examination and opinion by the closing attorney. The lender's policy, required by the lender and typically paid for by the borrower, protects the lender up to the loan balance. The owner's policy is optional, bought by the buyer, and protects the buyer up to the purchase price against loss by "encumbrance, defective titles, invalidity, adverse claim to title, or unmarketability of title" under O.C.G.A. 33-7-8. The loan policy does not protect the buyer — the classic misunderstanding — and Georgia law does not require an owner's policy.