Closing and Calculations
Five state items, and every one of them turns on a rate or a ratio that Georgia sets for itself. Bulletin 4672 prints no subtopics, so the ground covered here is the arithmetic a Georgia closing actually produces: the transfer tax on the deed, the intangible recording tax on the security instrument, ad valorem tax prorated off a 40 percent assessment, and the seller's net.
Real Estate Transfer Tax
O.C.G.A. § 48-6-1 imposes the tax on the deed at $1.00 for the first $1,000 or fractional part and 10 cents for each additional $100 or fractional part of the consideration, exclusive of any lien or encumbrance existing before the sale and not removed by it. On a price that is a whole multiple of $1,000 this works out to $1.00 per $1,000, so a $415,000 sale carries $415.00. Section 48-6-3 charges the tax to the person who executes the deed or for whose use or benefit it is executed — in an ordinary sale, the seller. Section 48-6-4 makes payment a prerequisite to recording and requires the actual consideration to be shown separately on the prescribed form, and § 48-6-5 makes the clerk of the superior court the collecting officer. Section 48-6-2 exempts, among others, security deeds, deeds of gift, leases, transfers between spouses in a divorce, and the deed from the debtor to the first transferee at a foreclosure sale.
Intangible Recording Tax and the 62-Month Line
O.C.G.A. § 48-6-61 imposes an intangible recording tax of $1.50 for each $500 or fraction of the face amount of the note, capped at $25,000 for any single note, and requires the security instrument to be recorded within 90 days of its date. A $276,000 note therefore carries 552 increments at $1.50, or $828.00. The tax is collected from the holder of the instrument, who may pass it to the borrower but may not treat it as part of the finance charge. It reaches only long-term notes, and House Bill 586 (Act 77, 2025), effective July 1, 2025, moved that line: § 48-6-60(3) now defines a long-term note as one where any part of the principal falls due more than 62 months from the date of the note, replacing the old three-year test. A 60-month note is short term and carries no recording tax; the former ad valorem tax on short-term notes, § 48-6-63, was repealed effective 1997. The same Act carried 62 months into §§ 48-6-66 and 48-6-68.
Ad Valorem Tax and Prorations
Georgia assesses tangible property at 40 percent of fair market value under O.C.G.A. § 48-5-7(a), and the millage is applied to that assessed figure, not to market value. A home worth $310,000 is assessed at $124,000; at 30.0 mills the annual county tax is $3,720, and a seller paying through June 30 owes $1,860. Section 48-5-10 fixes liability on property held and subject to taxation on January 1, which is why the year's bill is the thing prorated at a closing. Section 48-5-148 makes taxes due the state or a county bear interest from December 20 if unpaid, and § 48-5-44 gives a $2,000 statewide homestead exemption that many counties enlarge by local Act.
Seller's Net and Buyer's Funds
A seller's net is the contract price less the loan payoff, the brokerage fee, the transfer tax and the seller's other charges. On a $380,000 sale with a $246,500 payoff, a 6 percent fee of $22,800, a $380.00 transfer tax and $1,850 of other seller costs, the net is $108,470. Keep the two Georgia taxes on the right sides of the statement: the transfer tax on the deed falls on the party executing it, while the intangible recording tax on the buyer's new security deed is collected from the note holder and normally passed to the borrower, so it belongs in the buyer's column. Note also O.C.G.A. § 43-40-25(b)(20), which requires a licensee to make sure the client or customer receives a copy of the closing statement if the licensee is given one at closing, and to keep true copies in the broker's file.
Keep going: the full Georgia Real Estate Broker guide covers every section of the exam. Georgia Real Estate Broker Exam Study Guide (2026) — PDF + EPUB, $19.99 · 14-day refund →
State-specific details
State exam facts
- State regulator
- Georgia Real Estate Commission (GREC)
- Exam vendor
- PSI
- Prelicensing education
- 60-hour GREC-approved Brokers Prelicense Course (or a qualifying college/law-school or out-of-state equivalent)
Who regulates real estate brokers in Georgia?
The Georgia Real Estate Commission (GREC) licenses brokers, associate brokers, salespersons, and community association managers under O.C.G.A. Title 43-40. GREC contracts with PSI to deliver the licensing exams statewide.
What experience do I need before the Georgia broker exam?
Under O.C.G.A. § 43-40-8(c) and GREC Rule 520-1-.04(5)(b), a broker applicant must be at least 21, be a high school graduate or equivalent, and have held a license in active status for at least three of the five years immediately preceding the application. The education requirement can be met by the 60-hour Brokers Prelicense Course, by qualifying college or law-school coursework, or by 60 hours of approved prelicense coursework from another state or Canadian province.
How is the Georgia broker exam structured?
PSI bulletin 4672 gives the broker examination a 75-item national portion plus a 48-item Georgia Broker Supplement: State Laws and Rules (31 items), Management (12 items), and Closing and Calculations (5 items). The national broker portion is scenario-based — items carry more than four options and each option is weighted zero, one, or two points, so you pick the BEST answer rather than the only right one. The bulletin publishes no time limit and no numeric passing score for the broker exam; GREC Rule 520-1-.04(3)(a) says the passing score is set psychometrically and published before the exam is given.
Sources: https://grec.state.ga.us, https://test-takers.psiexams.com/api/content/bulletin/4672, https://rules.sos.ga.gov/gac/520-1
In the Georgia Real Estate Broker guide: A 60-question national practice exam, with a key that explains all four options and not just the right one. Practice here stays free.