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Georgia Finance and Closing Practice Questions Preview

This focused set tests Georgia Finance and Closing at salesperson level. Answer first, then use the rule and explanation to diagnose why each option wins or fails. Answer this 5-question public preview here, then continue the complete experience in Pass Georgia.

Facts checked against the current PSI Candidate Information Bulletin and GREC sources.

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1 / 5Study mode: Finance and Closing

A buyer purchases at $400,000 with a qualifying $320,000 long-term note secured by the property. The intangible recording tax is calculated on:

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34% of the real exam is Georgia law. 52 of 152 questions.

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1. A buyer purchases at $400,000 with a qualifying $320,000 long-term note secured by the property. The intangible recording tax is calculated on:Finance and Closing. Open choices and explanation.
  1. A.$400,000
  2. B.$80,000
  3. C.$160,000
  4. D.$320,000

Answer D: $320,000

The intangible recording tax applies to the face amount of the long-term note secured by the property. The transfer tax applies to the sale price. A stem giving you both numbers is testing exactly this.

Why each choice works or fails

  • A. Misconception: the price is the base. The price is the transfer tax base.
  • B. Misconception: taxing the equity. $80,000 is the down payment.
  • C. Misconception: applying the 40% assessment ratio, which belongs to property tax, to the price.
  • D. Correct. The tax follows the face amount of the secured note.

Work it through

  1. Intangible tax follows the loan: $320,000
  2. Transfer tax would follow the price: $400,000

Rule to remember: Intangible tax on the loan, transfer tax on the price.

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2. A Georgia property sells for $500,000 with a qualifying $375,250 secured note. What is the intangible recording tax?Finance and Closing. Open choices and explanation.
  1. A.$750.00
  2. B.$1,125.00
  3. C.$1,126.50
  4. D.$1,500.00

Answer C: $1,126.50

The note, not the price, is the base. $375,250 is 750.5 units of $500, rounded up to 751. Multiply by $1.50.

Why each choice works or fails

  • A. Wrong. Uses $1.50 per $1,000 of price.
  • B. Wrong. Drops the fractional $500 unit (750 x $1.50).
  • C. Correct. 751 x $1.50 = $1,126.50.
  • D. Wrong. Uses the $500,000 price as the base.

Work it through

  1. $375,250 / $500 = 750.5, rounded up to 751 units
  2. 751 x $1.50 = $1,126.50

Rule to remember: Georgia intangible recording tax follows the qualifying secured note and rounds a fractional $500 unit up.

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3. A Georgia property has a fair market value of $300,000. What is its assessed value for property tax?Finance and Closing. Open choices and explanation.
  1. A.$300,000
  2. B.$180,000
  3. C.$120,000
  4. D.$12,000

Answer C: $120,000

Georgia assesses at 40% of fair market value before the millage rate is applied. Miss the ratio and every downstream figure is wrong.

Why each choice works or fails

  • A. Misconception: assessed value equals market value. Full value skips the 40% ratio.
  • B. Misconception: subtracting 40% instead of taking 40%. $300,000 - $120,000 = $180,000.
  • C. Correct. $300,000 x 0.40 = $120,000.
  • D. Misconception: a decimal slip, using 4% instead of 40%.

Work it through

  1. $300,000 x 0.40 = $120,000 assessed value

Rule to remember: Georgia assesses at 40% of fair market value.

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4. A Georgia home sells for $285,000, and the buyer finances $228,000 with a new loan. No existing loan is assumed. What is the state transfer tax?Finance and Closing. Open choices and explanation.
  1. A.$228.00
  2. B.$684.00
  3. C.$285.00
  4. D.$2,850.00

Answer C: $285.00

Transfer tax follows the consideration, not the loan. $1 covers the first $1,000 and $0.10 applies to each additional $100, which works out to $1 per $1,000 on an even amount.

Why each choice works or fails

  • A. Wrong. $228.00 uses the loan amount as the base.
  • B. Wrong. $684.00 is the intangible recording tax on the $228,000 note.
  • C. Correct. $1 + 2,840 x $0.10 = $285.00.
  • D. Wrong. $2,850.00 moves the decimal, charging $10 per $1,000.

Work it through

  1. $285,000 - $1,000 = $284,000
  2. $284,000 / $100 = 2,840 units x $0.10 = $284.00
  3. $1.00 + $284.00 = $285.00

Rule to remember: Transfer tax follows the price ($1 first $1,000, $0.10 per added $100). Intangible tax follows the loan.

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5. A Georgia lender is preparing a non-judicial foreclosure under a power of sale. All of the following are required EXCEPT:Finance and Closing. Open choices and explanation.
  1. A.A court order authorizing the sale before it may be advertised
  2. B.Conducting the sale on the first Tuesday of the month during legal sale hours
  3. C.Giving the debtor the prescribed notice at least 30 days before the sale date
  4. D.Publication of the notice of sale in the county's legal organ once a week for four weeks before the sale

Answer A: A court order authorizing the sale before it may be advertised

Non-judicial foreclosure is exercised under the power of sale in the security deed, so no court order is needed. The creditor must follow Georgia's notice, publication, timing, and sale-location rules. When the prescribed notice is properly mailed, it is deemed given on the official postmark date; actual receipt is not required.

Why each choice works or fails

  • A. No court order is needed; the power of sale supplies the authority.
  • B. Sales follow sheriff's-sale timing: the first Tuesday of the month during legal sale hours.
  • C. The creditor must give the prescribed notice at least 30 days before the proposed sale. Proper mailing completes notice on the official postmark date.
  • D. The notice runs in the county legal organ once a week for the four weeks before the sale.

Rule to remember: Georgia power-of-sale foreclosure requires statutory notice, four weeks of publication, and a first-Tuesday sale, but no court order.

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What does this assessment cover?

Georgia finance and closing procedures, including security deeds, attorney closings, foreclosure, taxes, settlement entries, and calculations.
Question coverage in this assessment
Official content areaPublished weightQuestions hereComplete lesson
Finance and Closing15 of the 52 Georgia questions5Study Finance and Closing

The Georgia-specific distinction

Georgia uses a security deed, requires attorney control of the closing practice, and applies state-specific tax bases and fractional-unit rules. These are tested distinctions, not vocabulary swaps.

Worked result example

A sale price and secured note appear together. Transfer tax follows taxable consideration. Intangible recording tax follows the qualifying secured note. Name the taxable event before touching the calculator.

Common exam traps

  • Calling the security instrument a mortgage.
  • Using sale price for intangible recording tax.
  • Assuming post-sale statutory redemption.
  • Letting a licensee give the legal explanation reserved for the closing attorney.

Ready to move on?

  1. Score the set before opening notes.
  2. Explain the winning rule without repeating the answer choice.
  3. Classify every miss as knowledge, distinction, wording, math setup, or timing.
  4. Repair the weakest official area, then answer a fresh set on another day.
  5. Move on only when the result is stable and guesses are being marked as gaps.

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Assessment integrity

The questions are original and mapped to the current PSI outline. This preview introduces the assessment; the complete version is in Pass Georgia. PSI says practice exams help candidates become familiar with general question types, but they do not replace education and a good practice score does not guarantee an examination outcome. This page reports evidence, not a pass probability.

About this practice set

Facts checked against the current PSI Candidate Information Bulletin and GREC sources.

Are these actual PSI exam questions?

No. Every item is original, written from the current published outline and primary sources. No question is copied, recalled, reconstructed, or represented as a live PSI item.

Does this score predict whether I will pass?

No. One practice result is evidence about this question sample. Use the area breakdown, review guesses as well as misses, and confirm improvement with fresh questions on another day.

What should I do after the result?

Open the explanation for every miss and guess, restate the rule, use the linked repair lesson, then continue with the next lesson: Open the complete lesson hub.

Is the assessment free?

Yes. This 5-question preview has no email gate, account requirement, or card. The complete assessment, saved mastery, spaced review, and adaptive recommendations are in Pass Georgia.