LEGAL ALERT: New changes to Filing Requirements for Security Deeds in Georgia

Georgia has recently passed a new law that will help Superior Court clerks clear backlogs in the state's larger counties while making the filing process more efficient. Starting in July 2023, attorneys who draft security deeds will be required to list essential information on the document's first page. This means that all the information the clerk's office needs to input into the county records is in one convenient place. The new law also requires all Superior Court clerks to offer electronic filing for the recording of security deeds, along with a public computer terminal that allows courthouse access to the Georgia Superior Court Clerk's Cooperative Authority's electronic filing portal. This will help to address inefficiencies in the way that data is scattered throughout security deeds and, in some cases, not listed anywhere.

Security deeds are usually drafted by the attorney for the lender and reviewed by the borrower's attorney and the title company. The title company is the gatekeeper and usually files the security deed because it is the insurer of the priority of the lien. All parties are interested in the timely recording of a security deed and should be aware of the new requirements. Security deeds for commercial transactions commonly run 60 to 80 pages, and essential information such as the loan amount and maturity date might be anywhere in the documents. This means the clerk's office must search for the information before entering it into required fields in their recording systems and often leads to rejections of the deeds or delays if the data cannot be found.

Under HB 974, up to nine data points must be listed on the first page of a security deed or deed modification. These data points are the date of the document, the signatories' names, the grantee's mailing address, map, and parcel identification information, if available, the original loan amount or any outstanding principal amount and additional advance according to a loan. The new law will help to make the filing process more efficient and reduce the time it takes for the clerk's office to process security deeds.

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