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Real estate glossaryGeorgia-specific rule

Transfer tax

Georgia real estate transfer tax is an excise tax on a taxable conveyance of real property.

Exam area: Finance and Closing

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What does “transfer tax” mean in real estate?

Georgia real estate transfer tax is an excise tax on a taxable conveyance of real property. It is calculated from consideration at $1 for the first $1,000 or fraction, plus 10 cents for each additional $100 or fraction.

How is “transfer tax” different from the closest wrong answer?

Transfer tax follows the consideration for the conveyance. Intangible recording tax follows the face amount of a qualifying long-term note secured by real estate.

What is the Georgia-specific rule?

Georgia law places liability on the person executing the instrument, typically the seller, although a contract may allocate the cost differently between the parties.

Worked exam example

Scenario

A property sells for $325,000 with a new $260,000 loan. The transfer-tax base is the $325,000 consideration, not the loan.

What is the most common exam trap?

Trap correction

Using the loan amount or the intangible-tax rate produces a plausible but wrong answer.

Original exam check

Apply the definition

A Georgia home sells for $325,000. The buyer finances $260,000 with a new loan, and no existing lien stays on the property. What is the state transfer tax at $1 per $1,000 of consideration?

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