How the exam uses transfer tax
It follows the price. The intangible recording tax follows the loan. Stems give you both numbers precisely so you can apply the wrong one.
This is one of the terms Georgia handles differently from most states. If you prepared with a national question bank, check what it taught you here, because that is exactly where the state supplement takes marks back. The full list of Georgia differences.
What a question on this looks like
Georgia secures real estate loans using a:
Answer: Security deed Georgia is a title theory state and uses a security deed, sometimes called a deed to secure debt. Legal title passes to the lender until the debt is repaid.
Related terms
- Intangible recording tax: A Georgia tax applied to the loan amount when a long-term security instrument is recorded, separate from the transfer tax on the sale price.
Drill this in context at practice by topic, or browse the full glossary.