1 | 1 | | 25 LC 52 0714 |
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2 | 2 | | Senate Bill 90 |
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3 | 3 | | By: Senators Tillery of the 19th and Albers of the 56th |
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4 | 4 | | A BILL TO BE ENTITLED |
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5 | 5 | | AN ACT |
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6 | 6 | | To amend Article 3 of Chapter 19 of Title 15 and Article 1 of Chapter 17 of Title 45 of the |
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7 | 7 | | 1 |
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8 | 8 | | Official Code of Georgia Annotated, relating to the regulation of the practice of law and2 |
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9 | 9 | | general provisions regarding notaries public, respectively, so as to provide for the3 |
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10 | 10 | | modernization of certain legal, notarial, and court services using electronic means; to allow4 |
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11 | 11 | | an attorney to conduct a real estate closing for property in this state using electronic means5 |
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12 | 12 | | under certain conditions; to clarify the definition of the practice of law; to provide for6 |
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13 | 13 | | definitions; to prohibit witness-only closings; to prohibit the unauthorized practice of law;7 |
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14 | 14 | | to provide for penalties, liability, remedies, relief, and class action lawsuits; to provide for8 |
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15 | 15 | | legislative construction; to provide for legislative findings; to provide for certain notarial acts9 |
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16 | 16 | | to be performed remotely using electronic means when certain requirements are satisfied; to10 |
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17 | 17 | | provide for requirements and exemptions; to permit the use of an electronic seal of office;11 |
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18 | 18 | | to provide for criminal penalties and civil liability, including compensatory and other12 |
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19 | 19 | | damages; to provide for class action lawsuits; to provide for related matters; to provide for13 |
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20 | 20 | | an effective date; to repeal conflicting laws; and for other purposes.14 |
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21 | 21 | | BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:15 |
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22 | 22 | | S. B. 90 |
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23 | 23 | | - 1 - 25 LC 52 0714 |
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24 | 24 | | PART I |
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25 | 25 | | 16 |
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26 | 26 | | Real estate closing using electronic means17 |
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27 | 27 | | SECTION 1-1.18 |
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28 | 28 | | The General Assembly recognizes that the Supreme Court of Georgia, in the exercise of its19 |
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29 | 29 | | authority to govern the practice of law in this state, has issued several opinions addressing20 |
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30 | 30 | | real estate closings and the practice of law, including, but not limited to, Formal Advisory21 |
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31 | 31 | | Opinion No. 86-5 (86-R9) (May 12, 1989), Formal Advisory Opinion No. 00-3 (February 11,22 |
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32 | 32 | | 2000), In re: Formal Advisory Opinion No. 00-3 (November 10, 2003), Formal Advisory23 |
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33 | 33 | | Opinion No. 04-1 (August 6, 2004), In re: Formal Advisory Opinion No. 13-124 |
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34 | 34 | | (September 22, 2014), UPL Advisory Opinion No. 2003-2 (April 22, 2003), and In re: UPL25 |
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35 | 35 | | Advisory Opinion No. 2003-2 (November 10, 2003). The General Assembly finds that it is26 |
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36 | 36 | | in the public's interest to codify the rulings of such opinions on what constitutes the27 |
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37 | 37 | | unauthorized practice of law as it pertains to real estate closings in this state.28 |
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38 | 38 | | SECTION 1-2.29 |
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39 | 39 | | Article 3 of Chapter 19 of Title 15 of the Official Code of Georgia Annotated, relating to the30 |
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40 | 40 | | regulation of the practice of law, is amended by revising Code Section 15-19-50, relating to31 |
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41 | 41 | | "practice of law" defined, as follows:32 |
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42 | 42 | | "15-19-50.33 |
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43 | 43 | | (a) |
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44 | 44 | | The practice of law in this state is defined as:34 |
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45 | 45 | | (1) Representing litigants in court and preparing pleadings and other papers incident to35 |
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46 | 46 | | any action or special proceedings in any court or other judicial body;36 |
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47 | 47 | | (2) Conveyancing, including the transfer of ownership of real property located in this37 |
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48 | 48 | | state or any act in a real estate closing that constitutes the practice of law;38 |
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49 | 49 | | (3) The preparation of legal instruments of all kinds whereby a legal right is secured;39 |
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50 | 50 | | S. B. 90 |
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51 | 51 | | - 2 - 25 LC 52 0714 |
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52 | 52 | | (4) The rendering of opinions as to the validity or invalidity of titles to real or personal |
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53 | 53 | | 40 |
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54 | 54 | | property;41 |
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55 | 55 | | (5) The giving of any legal advice; and42 |
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56 | 56 | | (6) Any action taken for others in any matter connected with the law.43 |
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57 | 57 | | (b) Nothing in paragraph (2) of subsection (a) of this Code section shall prohibit acts taken |
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58 | 58 | | 44 |
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59 | 59 | | by an individual while solely representing himself or herself in the purchase or sale of real45 |
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60 | 60 | | estate property located in this state."46 |
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61 | 61 | | SECTION 1-3.47 |
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62 | 62 | | Said article is further amended by adding new Code sections to read as follows:48 |
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63 | 63 | | "15-19-50.1.49 |
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64 | 64 | | As used in this article, the term:50 |
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65 | 65 | | (1) 'In person electronic notarization' means a notarial act in which: the signatory appears51 |
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66 | 66 | | in front of and is identified by the notary in the same physical location at the time of52 |
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67 | 67 | | notarization; the document is presented in a digital format and signed using an electronic53 |
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68 | 68 | | signature; the notary witnesses the act of signing the document; and the notary uses an54 |
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69 | 69 | | electronic seal and signature to notarize the document.55 |
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70 | 70 | | (2) 'Real estate closing using electronic means' refers to the continuous, interconnected56 |
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71 | 71 | | series of events through which title to real property located in this state is conveyed from57 |
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72 | 72 | | one party to another party and includes all acts conducted in whole or in part using58 |
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73 | 73 | | electronic means as provided for in Code Section 15-19-50.2.59 |
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74 | 74 | | (3) 'Security instrument' means any written document presented for recording for the60 |
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75 | 75 | | purpose of conveying or creating a lien or encumbrance on real estate for the purpose of61 |
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76 | 76 | | securing a long-term note secured by real estate.62 |
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77 | 77 | | (4) 'Technology provider' means an individual or entity that offers the services of a63 |
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78 | 78 | | tamper-evident technology for electronic notarial acts.64 |
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79 | 79 | | S. B. 90 |
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80 | 80 | | - 3 - 25 LC 52 0714 |
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81 | 81 | | (5) 'Witness-only closing' means a real estate closing in which an attorney presides over65 |
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82 | 82 | | the execution of deeds of conveyance and other closing documents but purports to do so66 |
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83 | 83 | | merely as a witness and notary and not as someone who is practicing law.67 |
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84 | 84 | | 15-19-50.2.68 |
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85 | 85 | | (a) Any witness-only closing shall be unlawful in this state.69 |
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86 | 86 | | (b) An attorney conducting any real estate closing shall:70 |
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87 | 87 | | (1) Be licensed and present in this state at the time of such closing;71 |
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88 | 88 | | (2) Directly supervise and be responsible for the entirety of such closing, including all72 |
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89 | 89 | | employees, agents, and contractors who assist the attorney with such closing;73 |
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90 | 90 | | (3) Perform any and all duties otherwise required by law and by the rules and opinions74 |
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91 | 91 | | of the Supreme Court of Georgia; and75 |
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92 | 92 | | (4) Comply with subsection (c) of this Code section if conducting a real estate closing76 |
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93 | 93 | | using electronic means.77 |
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94 | 94 | | (c) In any real estate closing using electronic means, the participants shall have the78 |
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95 | 95 | | following duties:79 |
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96 | 96 | | (1) The attorney shall:80 |
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97 | 97 | | (A) Obtain consent from all participants to such closing, including any mortgage81 |
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98 | 98 | | lender, to the use of electronic means to facilitate such closing prior to such closing;82 |
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99 | 99 | | (B) Utilize two-way audio-video communication technology that is sufficiently secure83 |
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100 | 100 | | to prevent interference with the authenticity, integrity, and security of all documents for84 |
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101 | 101 | | such closing;85 |
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102 | 102 | | (C) Confirm the identity of any signatory through knowledge based authentication or86 |
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103 | 103 | | the presentation of a government issued form of identification and credential analysis;87 |
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104 | 104 | | (D) Ensure that two-way audio-video communication technology records such closing88 |
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105 | 105 | | and that such recording contains the following:89 |
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106 | 106 | | (i) The date and time of such closing, including any notarial act;90 |
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107 | 107 | | S. B. 90 |
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108 | 108 | | - 4 - 25 LC 52 0714 |
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109 | 109 | | (ii) A description of the documents that are being notarized;91 |
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110 | 110 | | (iii) An attestation that the attorney is physically located in this state at the time of92 |
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111 | 111 | | such closing; and93 |
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112 | 112 | | (iv) A clear image of any government issued identification that was used to verify the94 |
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113 | 113 | | identity of each participant;95 |
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114 | 114 | | (E) Conduct only one real estate closing using electronic means at a time;96 |
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115 | 115 | | (F) Certify that the copy of the electronic record is an accurate copy of such record;97 |
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116 | 116 | | and98 |
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117 | 117 | | (G) Retain possession of all electronic documents, a copy of the audio-video recording,99 |
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118 | 118 | | and other records of such closing for at least six years;100 |
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119 | 119 | | (2) The witness shall:101 |
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120 | 120 | | (A)(i) Be in the same physical location as the signatory, able to see, hear, and102 |
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121 | 121 | | communicate with the signatory, and able to witness the signature; or103 |
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122 | 122 | | (ii) Be present in this state and able to see, hear, and communicate with the signatory104 |
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123 | 123 | | and witness the signature through two-way audio-video communication technology;105 |
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124 | 124 | | (B) Witness the signatory sign the document; and106 |
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125 | 125 | | (C) Immediately sign the document as a witness; and107 |
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126 | 126 | | (3) The notary public shall:108 |
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127 | 127 | | (A) Be the attorney conducting such closing and shall provide his or her bar number109 |
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128 | 128 | | on each notarized document;110 |
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129 | 129 | | (B) Be present in this state;111 |
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130 | 130 | | (C) Be able to see, hear, and communicate with the signatory and witness the signature112 |
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131 | 131 | | by being in the same physical location for an in person electronic notarization or by113 |
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132 | 132 | | using two-way audio-video communication technology for a real estate closing using114 |
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133 | 133 | | electronic means;115 |
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134 | 134 | | (D) Witness the signatory sign the document; and116 |
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135 | 135 | | S. B. 90 |
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136 | 136 | | - 5 - 25 LC 52 0714 |
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137 | 137 | | (E) Immediately notarize the document using an electronic seal compliant with the117 |
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138 | 138 | | provisions of Code Section 45-17-6.118 |
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139 | 139 | | (d) Any person, including, but not limited to, a notary public, a technology provider, a119 |
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140 | 140 | | mortgage lender or its affiliates, employees, agents, and attorneys, or an attorney or the120 |
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141 | 141 | | attorney's employee or agent, that aids or abets another person in violating the provisions121 |
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142 | 142 | | of this Code section shall, upon the first or second conviction, be guilty of a misdemeanor;122 |
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143 | 143 | | provided, however, that, upon a third or subsequent conviction, such person shall be guilty123 |
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144 | 144 | | of a felony, punishable by imprisonment of not less than one year nor more than five years,124 |
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145 | 145 | | a fine of up to $5,000.00, or both."125 |
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146 | 146 | | SECTION 1-4.126 |
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147 | 147 | | Said article is further amended by revising subsection (a) of Code Section 15-19-51, relating127 |
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148 | 148 | | to unauthorized practice of law forbidden, as follows:128 |
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149 | 149 | | "(a) It shall be unlawful for any person other than a duly licensed attorney at law:129 |
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150 | 150 | | (1) To practice or appear as an attorney at law for any person other than himself or130 |
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151 | 151 | | herself in any court of this state or before any judicial body;131 |
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152 | 152 | | (2) To make it a business to practice as an attorney at law for any person other than132 |
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153 | 153 | | himself or herself in any of such courts;133 |
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154 | 154 | | (3) To hold himself or herself out to the public or otherwise to any person as being134 |
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155 | 155 | | entitled to practice law;135 |
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156 | 156 | | (4) To render or furnish legal services or advice;136 |
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157 | 157 | | (5) To furnish attorneys or counsel;137 |
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158 | 158 | | (6) To render legal services of any kind in actions or proceedings of any nature;138 |
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159 | 159 | | (7) To assume or use or advertise the title of 'lawyer,' 'attorney,' 'attorney at law,' or139 |
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160 | 160 | | equivalent terms in any language in such manner as to convey the impression that he or140 |
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161 | 161 | | she is entitled to practice law or is entitled to furnish legal advice, services, or counsel;141 |
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162 | 162 | | or142 |
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163 | 163 | | S. B. 90 |
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164 | 164 | | - 6 - 25 LC 52 0714 |
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165 | 165 | | (8) To advertise that either alone or together with, by, or through any person, whether |
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166 | 166 | | 143 |
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167 | 167 | | a duly and regularly admitted attorney at law or not, he or she |
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168 | 168 | | has, owns, conducts, or144 |
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169 | 169 | | maintains an office for the practice of law or for furnishing legal advice, services, or145 |
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170 | 170 | | counsel; or146 |
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171 | 171 | | (9) To perform any act that constitutes the practice of law under the law or under the147 |
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172 | 172 | | rules and opinions of the Supreme Court of Georgia."148 |
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173 | 173 | | SECTION 1-5.149 |
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174 | 174 | | Said article is further amended by revising Code Section 15-19-58, relating to injunctive150 |
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175 | 175 | | relief, venue, procedure, and other remedies not curtailed, as follows:151 |
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176 | 176 | | "15-19-58.152 |
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177 | 177 | | (a) The Attorney General, any district attorney, Either the State Bar of Georgia, the153 |
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178 | 178 | | Judicial Council of this state, or any organized bar association of this state is authorized to154 |
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179 | 179 | | institute in the proper superior court of this state an action or actions seeking injunctive155 |
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180 | 180 | | relief, civil penalties not to exceed $10,000.00 per violation, restitution for an ascertainable156 |
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181 | 181 | | loss caused by such violation, and investigative costs, reasonable expenses, and attorney's157 |
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182 | 182 | | and witness fees, against any person, firm, or corporation, when it determines after an158 |
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183 | 183 | | investigation determines that such person, firm, or corporation:159 |
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184 | 184 | | (1) Is engaged in the unauthorized or unlawful practice of law;160 |
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185 | 185 | | (2) Reserved;161 |
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186 | 186 | | (3) Is in In violation of Code Section 15-19-55 or rules promulgated by the Supreme162 |
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187 | 187 | | Court, is orally or by in writing, for a consideration then or afterwards to be charged or163 |
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188 | 188 | | received by himself or herself or another, offering or tendering to another person, without164 |
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189 | 189 | | the solicitation of such other person, the services of an attorney at law, resident or165 |
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190 | 190 | | nonresident of this state, in order for the attorney to institute an action or represent the166 |
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191 | 191 | | person in the courts of this or any other state or of the United States in the enforcement167 |
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192 | 192 | | S. B. 90 |
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193 | 193 | | - 7 - 25 LC 52 0714 |
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194 | 194 | | or collection by law of any claim, debt, or demand of any such person against another or |
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195 | 195 | | 168 |
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196 | 196 | | is suggesting or urging the bringing of the action; or169 |
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197 | 197 | | (4) Is engaged in the practice of seeking out and proposing to other persons that they170 |
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198 | 198 | | present and urge through any attorney at law the collection of any claim, debt, or demand171 |
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199 | 199 | | of such person against another.172 |
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200 | 200 | | (b) The venue of any action authorized by this Code section shall be determined by the173 |
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201 | 201 | | constitutional and statutory provisions relating to cases in equity.174 |
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202 | 202 | | (c) The hearing, interlocutory or final, and the trial of actions authorized by this Code175 |
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203 | 203 | | section shall be governed by the laws of this state relating to injunctions, as shall appeals176 |
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204 | 204 | | from orders or judgments therein.177 |
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205 | 205 | | (d) In any action brought under this Code section, the final judgment, if in favor of the178 |
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206 | 206 | | plaintiff, shall perpetually enjoin the defendant or defendants from the commission or179 |
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207 | 207 | | continuance of the act or acts complained of. Restraining orders or temporary injunctions180 |
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208 | 208 | | may be granted as in other cases in which injunctive relief is sought. Any person who |
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209 | 209 | | 181 |
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210 | 210 | | violates the terms of an injunction, judgment, or consent order entered under the provisions182 |
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211 | 211 | | of this Code section shall forfeit and pay to the state a civil penalty of not more183 |
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212 | 212 | | than $20,000.00 per violation of such injunction, judgment, or consent order, and184 |
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213 | 213 | | investigative costs, reasonable expenses, and attorney's and witness fees.185 |
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214 | 214 | | (e) This Code section and Code Section 15-19-57 shall not repeal or curtail any remedy186 |
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215 | 215 | | provided in cases of unauthorized or unlawful practice of law, and nothing contained in187 |
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216 | 216 | | these Code sections shall be construed as abridging the powers of the courts in such188 |
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217 | 217 | | matters."189 |
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218 | 218 | | SECTION 1-6.190 |
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219 | 219 | | Said article is further amended by revising Code Section 15-19-60, relating to consumer191 |
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220 | 220 | | action for damages for violations, as follows:192 |
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221 | 221 | | S. B. 90 |
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222 | 222 | | - 8 - 25 LC 52 0714 |
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223 | 223 | | "15-19-60. |
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224 | 224 | | 193 |
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225 | 225 | | Any consumer who is a party to a one-to-four family residential real estate transaction or |
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226 | 226 | | 194 |
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227 | 227 | | a consumer debtor or a trustee of a consumer debtor in a bankruptcy case that involves a195 |
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228 | 228 | | one-to-four family residential real property who is damaged by a violation of this article196 |
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229 | 229 | | or a violation of the Supreme Court's rules or opinions governing the unlicensed practice197 |
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230 | 230 | | of law shall be entitled to maintain a civil action to recover damages, treble damages,198 |
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231 | 231 | | reasonable attorney's fees, and expenses of litigation. A claim for a violation of this Code199 |
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232 | 232 | | section shall be asserted in an individual action only and shall not be the subject of a class200 |
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233 | 233 | | action under Code Section 9-11-23. This Code section shall not prevent the activities201 |
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234 | 234 | | authorized by Code Section 15-19-52, 15-19-53, 15-19-54, 15-19-59, or 43-40-25.1.202 |
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235 | 235 | | (a) Any buyer, seller, or borrower that is or was a party to a residential or commercial real203 |
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236 | 236 | | estate closing in which any person involved in such transaction engaged in conduct204 |
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237 | 237 | | constituting the unauthorized or unlawful practice of law or a class of such plaintiffs shall205 |
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238 | 238 | | be entitled to maintain a civil action to recover damages. Such damages shall include, but206 |
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239 | 239 | | not be limited to:207 |
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240 | 240 | | (1) Actual monetary losses incurred by the plaintiff or the class of plaintiffs as a result208 |
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241 | 241 | | of a violation of the provisions this article, or $1,000.00 in damages for each such209 |
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242 | 242 | | violation, whichever is greater;210 |
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243 | 243 | | (2) Any expenses paid by the plaintiff or the class of plaintiffs for the services of any211 |
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244 | 244 | | person or entity that violated the provisions of this article; and212 |
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245 | 245 | | (3) De minimis or nominal damages incurred by the plaintiff or the class of plaintiffs as213 |
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246 | 246 | | a result of a violation of the provisions of this article.214 |
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247 | 247 | | (b) In addition to any other penalties provided for by law, if the court finds that the215 |
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248 | 248 | | defendant willfully or knowingly violated the provisions of this article, the court may, in216 |
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249 | 249 | | its discretion, increase the award to an amount equal to not more than three times the217 |
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250 | 250 | | amount available under paragraph (1) of subsection (a) of this Code section. The court218 |
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251 | 251 | | shall consider the frequency and persistence of noncompliance by the defendant, the nature219 |
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252 | 252 | | S. B. 90 |
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253 | 253 | | - 9 - 25 LC 52 0714 |
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254 | 254 | | of such noncompliance, the extent to which such noncompliance was intentional, the220 |
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255 | 255 | | number of persons or sales impacted by the violation, the impact of the judgment, and the221 |
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256 | 256 | | resources of the defendant.222 |
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257 | 257 | | (c) Any person, including, but not limited to, a notary public, a technology provider, a223 |
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258 | 258 | | mortgage lender or its affiliates, employees, agents, and attorneys, or an attorney or the224 |
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259 | 259 | | attorney's employee or agent, that, while participating in a residential or commercial real225 |
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260 | 260 | | estate closing, engages in conduct that constitutes the unauthorized or unlawful practice of226 |
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261 | 261 | | law, knowingly aids and abets another person in committing such conduct, or otherwise227 |
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262 | 262 | | violates the provisions of this article regulating real estate transactions shall be liable for228 |
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263 | 263 | | damages resulting from such conduct.229 |
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264 | 264 | | (d) When the loan agreement for a real estate transaction contains an arbitration clause and230 |
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265 | 265 | | the mortgage lender or such lender's agent engages in conduct that constitutes the231 |
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266 | 266 | | unauthorized or unlawful practice of law or an unlawful notarial act, the arbitration clause232 |
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267 | 267 | | shall not be enforceable to the extent it restricts or excludes damages or remedies that233 |
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268 | 268 | | would be available to the plaintiff in court, including the right to participate in a class234 |
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269 | 269 | | action.235 |
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270 | 270 | | (e) The court may provide such equitable relief it deems necessary or proper, including236 |
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271 | 271 | | invalidating any security instrument in connection with the sale of the real estate property237 |
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272 | 272 | | at issue executed in violation of the provisions of this article and enjoining the defendants238 |
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273 | 273 | | from further violations of the provisions of this article.239 |
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274 | 274 | | (f) In a successful action to enforce the provisions of this article, a court shall award240 |
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275 | 275 | | plaintiffs costs, including reasonable attorney's fees. When a class of plaintiffs prevails,241 |
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276 | 276 | | class counsel shall be entitled to the greater of one-third of the class's recovery or the242 |
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277 | 277 | | number of hours billed at a reasonable hourly rate times a multiplier set by the court in its243 |
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278 | 278 | | discretion, whichever is greater.244 |
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279 | 279 | | (g) A person shall not be held liable for damages in any action brought under this article245 |
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280 | 280 | | if the person shows by a preponderance of the evidence that the violation was not246 |
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281 | 281 | | S. B. 90 |
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282 | 282 | | - 10 - 25 LC 52 0714 |
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283 | 283 | | intentional and resulted from a bona fide error notwithstanding the maintenance of247 |
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284 | 284 | | procedures implemented to avoid such error.248 |
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285 | 285 | | (h) A cause of action brought under this Code section may be filed in any court of249 |
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286 | 286 | | competent jurisdiction within this state without regard to the amount in controversy. Such250 |
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287 | 287 | | cause of action shall be filed within one year from the date on which the violation occurred251 |
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288 | 288 | | or the date of discovery of the violation, whichever is later.252 |
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289 | 289 | | (i) This Code section shall not prevent the activities authorized by this article, Chapter 17253 |
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290 | 290 | | of Title 45, and Code Section 43-40-25.1."254 |
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291 | 291 | | PART II255 |
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292 | 292 | | Notarization using electronic means256 |
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293 | 293 | | SECTION 2-1.257 |
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294 | 294 | | Article 1 of Chapter 17 of Title 45 of the Official Code of Georgia Annotated, relating to258 |
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295 | 295 | | general provisions regarding notaries public, is amended by revising Code Section 45-17-9,259 |
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296 | 296 | | relating to where notarial acts may be exercised, as follows:260 |
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297 | 297 | | "45-17-9.261 |
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298 | 298 | | (a) Notarial acts may be exercised in any county in the state, provided that the notary262 |
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299 | 299 | | public shall be physically located in this state and the notarial act is performed in the263 |
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300 | 300 | | physical presence of the notary public as provided in subsection (b) of this Code section264 |
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301 | 301 | | or is performed remotely as provided in subsection (c) of this Code section.265 |
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302 | 302 | | (b) Any notarial act to be performed in the physical presence of the notary public shall take266 |
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303 | 303 | | place in the same physical location and at the same time and close enough for the notary267 |
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304 | 304 | | public to see, hear, communicate with, and exchange tangible identification credentials268 |
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305 | 305 | | with the individual whose act is being notarized.269 |
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306 | 306 | | (c) Any notarial act to be performed remotely shall meet the following requirements:270 |
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307 | 307 | | S. B. 90 |
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308 | 308 | | - 11 - 25 LC 52 0714 |
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309 | 309 | | (1) The notary public shall use real-time two-way audio-video communication271 |
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310 | 310 | | technology that allows the parties to see, hear, and communicate with each other and is272 |
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311 | 311 | | sufficiently secure to prevent interference with the authenticity, integrity, and security of273 |
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312 | 312 | | the transaction, corruption or loss of the recording of the transaction, and unauthorized274 |
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313 | 313 | | use of or tampering with the recording, record, and backup record;275 |
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314 | 314 | | (2) The signatory shall be physically located in the United States or one of its territories276 |
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315 | 315 | | or military bases or at a United States embassy, consulate, or diplomatic mission location277 |
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316 | 316 | | and present evidence of his or her identity and location;278 |
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317 | 317 | | (3) The notary public shall witness the signature;279 |
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318 | 318 | | (4) The notary public shall document evidence of the acts provided for in paragraphs (1)280 |
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319 | 319 | | through (3) of this subsection; and281 |
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320 | 320 | | (5) The notarial act shall not be performed to:282 |
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321 | 321 | | (A) Create or execute a will, codicil, or testamentary trust; or283 |
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322 | 322 | | (B) Notarize the signature on any security instrument or document executed for the284 |
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323 | 323 | | conveyance of real property located in this state, whether or not such security285 |
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324 | 324 | | instrument or document is recorded, except as provided for in Code Section 15-19-50.2.286 |
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325 | 325 | | (d) A notary public may use an electronic seal of office to perform a notarial act as287 |
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326 | 326 | | provided for in subsection (c) of this Code section or to perform an in-person electronic288 |
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327 | 327 | | notarization in a real estate closing using electronic means as provided for in Code289 |
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328 | 328 | | Section 15-19-50.2. Such electronic seal of office shall comply with the provisions of290 |
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329 | 329 | | Code Section 45-17-6."291 |
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330 | 330 | | SECTION 2-2.292 |
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331 | 331 | | Said article is further amended by revising Code Section 45-17-20, relating to penalty and293 |
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332 | 332 | | prosecution of violations of article, as follows:294 |
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333 | 333 | | S. B. 90 |
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334 | 334 | | - 12 - 25 LC 52 0714 |
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335 | 335 | | "45-17-20. |
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336 | 336 | | 295 |
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337 | 337 | | (a) Any person who violates subsection (d) of Code Section 45-17-8 shall be guilty of a |
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338 | 338 | | 296 |
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339 | 339 | | misdemeanor or performs any notarial act without complying with the provisions of this297 |
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340 | 340 | | article shall, upon a first or second conviction, be guilty of a misdemeanor; provided,298 |
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341 | 341 | | however, that, upon a third or subsequent conviction, such person shall be guilty of a299 |
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342 | 342 | | felony, punishable by imprisonment of not less than one year nor more than five years, a300 |
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343 | 343 | | fine of up to $5,000.00, or both.301 |
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344 | 344 | | (b) Any person who performs any notarial service without complying with the provisions302 |
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345 | 345 | | of this article shall, upon the, including, but not limited to, a notary public, a technology303 |
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346 | 346 | | provider, a mortgage lender or its affiliates, employees, agents, and attorneys, or an304 |
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347 | 347 | | attorney or the attorney's employee or agent, that aids or abets another person in violating305 |
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348 | 348 | | the provisions of this article, including, but not limited to, directing the performance of an306 |
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349 | 349 | | unauthorized notarial act, shall, upon a first or second conviction, be guilty of a307 |
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350 | 350 | | misdemeanor and; provided, however, that, upon a third or subsequent conviction, such308 |
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351 | 351 | | person shall be guilty of a felony, punishable by imprisonment of not less than one year nor309 |
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352 | 352 | | more than five years, a fine of up to $5,000.00, or both."310 |
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353 | 353 | | SECTION 2-3.311 |
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354 | 354 | | Said article is further amended by adding a new Code section to read as follows:312 |
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355 | 355 | | "45-17-21.313 |
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356 | 356 | | (a) Any person, including, but not limited to, a notary public, a technology provider, a314 |
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357 | 357 | | mortgage lender or its affiliates, employees, agents, and attorneys, or an attorney or the315 |
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358 | 358 | | attorney's employee or agent, that, while participating in a residential or commercial real316 |
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359 | 359 | | estate closing involving property located in this state, engages in conduct that constitutes317 |
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360 | 360 | | an unlawful notarial act, knowingly aids and abets another person in committing an318 |
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361 | 361 | | unlawful notarial act, or otherwise violates the provisions of this article regulating real319 |
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362 | 362 | | estate transactions shall be liable for damages resulting from such illegal conduct.320 |
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363 | 363 | | S. B. 90 |
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364 | 364 | | - 13 - 25 LC 52 0714 |
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365 | 365 | | (b) Any buyer, seller, or borrower that is or was party to a residential or commercial real321 |
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366 | 366 | | estate closing involving property located in this state in which any person engaged in an322 |
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367 | 367 | | unlawful notarial act or other violation of the provisions of this article or a class of such323 |
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368 | 368 | | plaintiffs shall be entitled to maintain a civil action to recover damages. Such damages324 |
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369 | 369 | | shall include, but not be limited to:325 |
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370 | 370 | | (1) Actual monetary losses incurred by the plaintiff or class of plaintiffs as a result of a326 |
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371 | 371 | | violation of the provisions of this article, or $1,000.00 in damages for each such violation,327 |
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372 | 372 | | whichever is greater;328 |
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373 | 373 | | (2) Any expenses paid by the plaintiff or class of plaintiffs for the services of any person329 |
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374 | 374 | | or entity that violated the provisions of this article; and330 |
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375 | 375 | | (3) De minimis or nominal damages incurred by the plaintiff or class of plaintiffs as a331 |
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376 | 376 | | result of a violation of the provisions of this article.332 |
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377 | 377 | | (c) In addition to penalties provided for in this article, if the court finds that the defendant333 |
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378 | 378 | | willfully or knowingly violated the provisions of this article, the court may, in its334 |
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379 | 379 | | discretion, increase the award to any amount equal to not more than three times the amount335 |
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380 | 380 | | available under paragraph (1) of subsection (b) of this Code section.336 |
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381 | 381 | | (d) When the loan agreement for a real estate transaction contains an arbitration clause and337 |
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382 | 382 | | the mortgage lender or such lender's agent engages in conduct that constitutes an unlawful338 |
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383 | 383 | | notarial act, the arbitration clause shall not be enforceable to the extent it restricts or339 |
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384 | 384 | | excludes damages or remedies that would be available to the plaintiff in court, including340 |
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385 | 385 | | the right to participate in a class action.341 |
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386 | 386 | | (e) The court may provide such equitable relief it deems necessary or proper, including342 |
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387 | 387 | | invalidating any security instrument executed in violation of Code Section 45-17-9 in343 |
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388 | 388 | | connection with the sale of the real estate property at issue and enjoining the defendants344 |
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389 | 389 | | from further violations of the provisions of this article.345 |
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390 | 390 | | (f) In a successful action to enforce the provisions of this article, a court shall award the346 |
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391 | 391 | | plaintiff costs, including reasonable attorney's fees. When a class of plaintiffs prevails,347 |
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392 | 392 | | S. B. 90 |
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393 | 393 | | - 14 - 25 LC 52 0714 |
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394 | 394 | | class counsel shall be entitled to the greater of one-third of the class's recovery or the348 |
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395 | 395 | | number of hours billed at reasonable hourly rate times a multiplier set by the court in its349 |
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396 | 396 | | discretion, whichever is greater.350 |
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397 | 397 | | (g) A cause of action brought under this Code section may be filed in any court of351 |
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398 | 398 | | competent jurisdiction within this state without regard to the amount in controversy. Such352 |
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399 | 399 | | cause of action shall be filed within one year from the date on which the violation occurred353 |
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400 | 400 | | or the date of discovery of the violation, whichever is later."354 |
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401 | 401 | | PART III355 |
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402 | 402 | | Effective date and repealer356 |
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403 | 403 | | SECTION 3-1.357 |
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404 | 404 | | This Act shall become effective upon its approval by the Governor or upon its becoming law358 |
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405 | 405 | | without such approval.359 |
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406 | 406 | | SECTION 3-2.360 |
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407 | 407 | | All laws and parts of laws in conflict with this Act are repealed.361 |
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408 | 408 | | S. B. 90 |
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409 | 409 | | - 15 - |
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