What is the exam-ready answer?
| Roadmap lesson | 167 of 500 |
|---|---|
| Official syllabus topic | Finance and Closing: Finance; Closing Procedures |
| Official PSI group | Finance and Closing |
| Published group count | 15 of the 52 Georgia questions |
| Exam portion | Georgia salesperson supplement |
| Source edition | PSI Georgia Candidate Information Bulletin dated July 1, 2026 |
| Law checked through | August 2, 2026 |
| Last verified | August 2, 2026 |
The Rule
PSI publishes 16, 21, and 15 items for the three Georgia groups. It does not publish a guaranteed subtopic count. The statute, current GREC rule, contract, or other cited primary authority controls each lesson.
Complete lesson
Read these concepts as one Georgia decision system. A plausible national rule can still be the wrong answer when the stem supplies a Georgia statute, instrument, role, or procedure.
Finance chain
Borrower signs the note, grants the security deed, satisfies lender conditions, and pays loan-related charges while the lender authorizes funding.
Title chain
The attorney examines title, obtains cures and payoffs, prepares or adopts legal documents, conducts closing, and coordinates recording.
Money chain
Deposits, loan proceeds, buyer funds, seller proceeds, taxes, costs, payoffs, and prorations must balance in the settlement statement.
Tax chain
Transfer tax follows taxable consideration and the deed transaction. Intangible recording tax follows the face amount of the qualifying long-term note secured by Georgia real estate.
Decision rule
Georgia rule and national contrast
Worked Georgia example
Scenario. A home sells for $400,000 with a $320,000 long-term note secured by Georgia real estate. The seller has an existing loan payoff and prepaid property taxes.
Reason it through. Use taxable consideration for transfer tax and $320,000 for intangible recording tax. Debit the seller for the payoff. Prorate prepaid taxes as a buyer debit and seller credit for the buyer's ownership period. The attorney conducts closing and coordinates recording.
Answer. Keep each base and settlement entry separate; do not calculate both taxes from $400,000 or treat the payoff as a buyer charge.
Common exam traps
- Using one base for both taxes
- Calling the security deed the debt
- Reversing prepaid-tax entries
- Treating signing as completed recordation
Original practice questions with detailed explanations
These are original instructional questions mapped to the July 1, 2026 PSI outline. They are not copied from PSI or a live examination. Choose an answer before opening the explanation.
Question 1Which statement best states the Georgia rule for Georgia Finance and Closing Scenario Workshop?
- A. Both Georgia closing taxes always use the sale price.
- B. The security deed is the borrower's repayment promise.
- C. A seller's existing loan payoff is normally charged to the buyer.
- D. Build a closing timeline and label every document, party, amount, tax base, debit or credit, and legal event.
Show answer and explanation →
Answer: D. Build a closing timeline and label every document, party, amount, tax base, debit or credit, and legal event.
The correct choice states the controlling rule. The other choices either remove a required element, replace Georgia authority with a generic assumption, or expand an exception beyond the cited source.
Question 2A home sells for $400,000 with a $320,000 long-term note secured by Georgia real estate. The seller has an existing loan payoff and prepaid property taxes.
- A. Keep each base and settlement entry separate; do not calculate both taxes from $400,000 or treat the payoff as a buyer charge.
- B. Ignore the Georgia-specific fact because good intentions control.
- C. Apply the nearest national rule without checking Georgia authority.
- D. Let the participant with the strongest preference decide without following the required process.
Show answer and explanation →
Answer: A. Keep each base and settlement entry separate; do not calculate both taxes from $400,000 or treat the payoff as a buyer charge.
Use taxable consideration for transfer tax and $320,000 for intangible recording tax. Debit the seller for the payoff. Prorate prepaid taxes as a buyer debit and seller credit for the buyer's ownership period. The attorney conducts closing and coordinates recording. The correct option follows that reasoning. The distractors ignore the controlling Georgia source, substitute intent for procedure, or give decision-making authority to the wrong person.
Question 3When solving Georgia Finance and Closing Scenario Workshop, what should a candidate identify first?
- A. The answer choice that sounds most ethical, without classifying the actor or document.
- B. When two answers look plausible, ask which document, base, party, or moment each answer actually describes.
- C. One familiar deadline, applied to every Georgia transaction regardless of the source.
- D. A national default, even when the stem identifies a Georgia statute or GREC rule.
Show answer and explanation →
Answer: B. When two answers look plausible, ask which document, base, party, or moment each answer actually describes.
The decision rule identifies the facts that control this topic. The other choices reward tone, a memorized number, or a national default while skipping the Georgia actor, document, authority, or procedure.
Mastery tracking
Mark this Georgia lesson mastered only when every statement is true.
- State the direct answer and decision rule without notes.
- Explain all four concepts and identify the controlling Georgia source.
- Solve the worked example after changing one important fact.
- Reject every listed trap and explain what makes it tempting.
- Answer all three original questions correctly and explain every distractor.
- Repeat this topic in mixed Georgia practice on a later day.
Recommended next lesson
Continue with Mixed Georgia supplement practice. Test all three Georgia groups together and reopen the lesson behind every miss.
Return to the Finance and Closing hub for the complete official branch and every canonical lesson in this Georgia group.