PASS GEORGIA
REAL ESTATE EXAM PREPGEORGIA REAL ESTATE EXAM GLOSSARY
Georgia intangible recording tax applies when a qualifying long-term note secured by real estate is recorded.
Finance and Closing
Georgia taxes and closing math
Define, distinguish, apply, retrieve
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PASS GEORGIA
REAL ESTATE EXAM PREPGEORGIA REAL ESTATE EXAM
GLOSSARY TERM GUIDEBuild the complete exam definition
Learn the rule, separate it from the nearest distractor, then apply it to a Georgia fact pattern.
What does Intangible recording tax mean?
Georgia intangible recording tax applies when a qualifying long-term note secured by real estate is recorded. For notes executed on or after July 1, 2025, long-term means that some principal falls due more than 62 months after the note or security instrument date. The rate is $1.50 per $500 or fraction of the note's face amount, subject to a $25,000 maximum on a single note.
How do you separate the nearest exam answer?
This tax is based on the secured note, not the property's sale price. It is separate from real estate transfer tax.
What changes or stays the same in Georgia?
The holder must record the security instrument and pay the tax within 90 days. The holder may pass the tax to the borrower without treating it as a finance charge.
A buyer pays $400,000 and borrows $310,250 on a qualifying long-term note. Divide the loan by $500, round up the fraction, then multiply by $1.50.
Candidates commonly use the sale price, round down a partial $500, or forget the statutory cap.
PASS GEORGIA
REAL ESTATE EXAM PREPGEORGIA REAL ESTATE EXAM
GLOSSARY TERM GUIDERetrieve the rule under exam conditions
Answer before reading the explanation. Then explain why every distractor belongs to a different term.
A buyer pays $400,000 and signs a 30-year note for $310,250 secured by the property. What is the Georgia intangible recording tax at $1.50 per $500 or fraction of the note?
- A
$930.00
- B
$931.50
- C
$1,200.00
- D
$310.30
The tax is based on the note, and a partial $500 counts as a full one: $310,250 divided by $500 is 620.5, which rounds up to 621, and 621 times $1.50 equals $931.50. Rounding down gives $930.00, the sale price gives $1,200.00, and $310.30 applies the transfer tax method to the loan.
Mark each box only when you can perform the skill without looking.
I can define the term in one precise sentence.
I can separate it from the closest look-alike.
I can explain the Georgia rule or confirm that the national rule applies.
I can answer the practice check and explain every option.
PASS GEORGIA
REAL ESTATE EXAM PREPGEORGIA REAL ESTATE EXAM
GLOSSARY TERM GUIDEConnect the term to the wider exam
Use these relationships to move from isolated recall to a connected exam model.
Finance and Closing complete lesson
https://www.passgeorgiarealestate.com/blog/georgia-transfer-tax-and-intangible-recording-tax
Official exam administration and content-outline source.
https://test-takers.psiexams.com/api/content/bulletin/4672Official source for the Georgia tax on qualifying long-term notes secured by real estate.
https://dor.georgia.gov/intangible-recording-tax