Georgia Closing Costs Explained: Taxes, Fees, and Who Pays
Most buyers budget for the down payment. Then the Closing Disclosure arrives, and a page of taxes, fees, and prepaid items shows up that nobody…
Most buyers budget for the down payment. Then the Closing Disclosure arrives, and a page of taxes, fees, and prepaid items shows up that nobody explained. Here are Georgia closing costs explained line by line: what the state charges, what the county charges, and who usually pays.
Georgia closing costs are the taxes, fees, and prepaid items due at a real estate closing, on top of the price or the loan. Two taxes are set by Georgia statute: the transfer tax, about $1 per $1,000 of the sale price, and the intangible recording tax, $1.50 per $500 of a long-term loan, capped at $25,000. Who pays the rest is decided by the purchase contract.
What are closing costs in Georgia?
Closing costs are the charges required to transfer ownership and fund a loan. They include state and county taxes on the deed and the loan, recording fees, the closing attorney’s fees, title insurance, lender charges, and prepaid items such as homeowner’s insurance and escrow deposits. Buyers usually carry more of them than sellers, but every item is negotiable in the contract.
In Georgia, the closing itself is legal work. The Supreme Court of Georgia has held that a non-lawyer who conducts a real estate closing commits the unauthorized practice of law (In re UPL Advisory Opinion 2003-2, 277 Ga. 472 (2003)). That is why your closing costs include an attorney’s fee rather than an escrow company’s fee.
What is the Georgia real estate transfer tax?
Georgia taxes each deed that conveys real estate when the consideration exceeds $100. The rate is “$1.00 for the first $1,000.00 or fractional part of $1,000.00 and at the rate of 10¢ for each additional $100.00 or fractional part” (O.C.G.A. § 48-6-1). In plain terms, that works out to about $1 per $1,000 of the price.
The tax is figured on the price, not counting the value of liens that stay on the property. The purchase contract decides who pays it. In Georgia residential sales, the seller commonly pays it.
| Sale price | Transfer tax |
|---|---|
| $250,000 | $250 |
| $400,000 | $400 |
| $750,000 | $750 |
What is the Georgia intangible recording tax?
Georgia taxes a security deed that secures a long-term note. The rate is “$1.50 for each $500.00 or fraction thereof of the face amount of the note,” and the maximum on any single note is $25,000.00 (O.C.G.A. § 48-6-61). This is the tax most buyers have never heard of, and on a purchase loan it is often the largest government charge at closing.
A few points the statute settles:
- Who pays: the tax falls on the lender, but the statute lets the lender pass it to the borrower. In practice, the borrower usually pays it.
- What counts as long-term: a note that falls due more than 62 months from its date (O.C.G.A. § 48-6-60(3)). A 2025 amendment, effective July 1, 2025, changed this from “more than three years.”
- Deadline: the lender must record the security deed within 90 days of its date.
| Loan amount | Intangible recording tax |
|---|---|
| $200,000 | $600 |
| $320,000 | $960 |
| $500,000 | $1,500 |
A cash buyer has no loan, so a cash purchase has no intangible recording tax.
How much does it cost to record documents in Georgia?
The clerk of superior court charges $25.00 to file each instrument pertaining to real estate, including each deed (O.C.G.A. § 15-6-77). A typical financed purchase records at least two instruments: the warranty deed and the security deed. A payoff of the seller’s loan also requires the seller’s security deed to be cancelled of record, usually a seller-side cost.
The $25 is the clerk’s statutory fee. Your closing attorney may also list e-recording or courier charges, which vary by firm.
Who pays closing costs in Georgia, the buyer or the seller?
The purchase and sale agreement decides who pays each cost. Georgia law sets the taxes but does not say who bears them between buyer and seller, apart from the intangible tax rule above. Sellers can agree to contribute toward the buyer’s costs, and lenders may limit how much.
| Cost | Common payer in Georgia | Set by |
|---|---|---|
| Transfer tax | Seller | O.C.G.A. § 48-6-1, contract |
| Intangible recording tax | Buyer (borrower) | O.C.G.A. § 48-6-61 (lender may pass to borrower), loan documents |
| Recording the deed and security deed | Buyer | O.C.G.A. § 15-6-77, contract |
| Payoff of the seller’s loan | Seller | Seller’s lender |
| Lender’s title insurance policy | Buyer | Lender requirement |
| Owner’s title insurance policy | Negotiable | Contract |
| Real estate commissions | Negotiable | Listing and buyer agreements |
| Property tax for the year | Prorated | Contract |
| Loan charges and prepaid items | Buyer | Lender and loan terms, disclosed on the Loan Estimate |
How are property taxes handled at a Georgia closing?
Property taxes are usually prorated, meaning each party pays for the part of the tax year it owned the property. The purchase contract sets the method. When the current year’s bill is not out yet, the closing attorney often prorates on the prior year’s figures, and the contract says whether the parties settle up later.
Read the proration clause before closing. It is one of the few closing-cost items where the math depends on wording you agreed to months earlier.
When will I see my exact closing costs?
Federal rules require two lender disclosures. Your lender must send the Loan Estimate within three business days of receiving your application, according to the Consumer Financial Protection Bureau. You must receive the Closing Disclosure at least three business days before closing. Compare the two line by line, and ask your lender and closing attorney about any change.
Cash buyers do not receive these lender forms. They get a settlement statement from the closing attorney instead.
Can I bring a personal check to a Georgia closing?
On a financed closing, only for small amounts. Georgia’s good funds law bars the closing attorney from disbursing on a lender’s loan for a 1 to 4 unit home until the funds are “collected funds” (O.C.G.A. § 44-14-13). A wire or a lender’s cashier’s check qualifies, and so do attorney or broker escrow checks and government checks. Most other checks, including personal checks, are capped at $5,000.00 in total per loan closing.
Plan your cash to close as a wire, and confirm the wiring instructions by phone with your closing attorney using a number you already know. Fraudsters send fake instructions that look real. I covered how that scam works in Seller Impersonation Fraud in Georgia.
How can I lower my closing costs in Georgia?
You cannot negotiate the state taxes, but you can negotiate almost everything else. These steps make the biggest difference:
- Compare Loan Estimates. Lender charges vary more than any other category.
- Negotiate seller contributions in the contract. Put the dollar amount in writing.
- Ask what the owner’s title policy costs. Then decide with your attorney whether to buy it.
- Time the closing. Closing date affects prepaid interest and prorations.
- Read the Closing Disclosure early. Errors are easier to fix three days out than at the table.
Can AI estimate my Georgia closing costs?
AI tools can produce a rough estimate, but they often miss Georgia-specific items like the intangible recording tax or the $5,000 cap on most checks at financed closings. Treat an AI estimate as a starting point. Your Loan Estimate, Closing Disclosure, and closing attorney’s settlement statement are the numbers that count.
Georgia closing costs explained: frequently asked questions
How much are closing costs in Georgia? There is no single number, because closing costs depend on the price, the loan, and the contract. The state charges follow formulas. On a $400,000 sale with a $320,000 loan, the transfer tax is $400, the intangible recording tax is $960, and the clerk charges $25 per recorded instrument. Lender charges, attorney fees, title insurance, and prepaid items vary, so your Loan Estimate is the best early figure.
What is a deed preparation fee? It is the closing attorney’s charge for drafting the deed. In Georgia, preparing a deed for someone else is legal work, so an attorney prepares it. The amount varies by firm, and the contract decides who pays it. It appears on the Closing Disclosure or settlement statement.
What closing costs does a seller pay in Georgia? It depends on the contract, but sellers commonly pay the transfer tax, the payoff of their loan, their share of the year’s property taxes through closing, any commissions owed under their listing agreement, and any costs they agreed to cover for the buyer.
Do closing costs include realtor fees? Real estate commissions are not set by law. They come from the listing agreement and the buyer’s written agreement with the buyer’s agent, and they are often paid at closing from the sale proceeds. They appear on the settlement figures with the other closing costs.
What closing costs does a cash buyer pay in Georgia? Fewer. A cash buyer has no lender charges, no lender’s title policy, and no intangible recording tax. Cash buyers still pay recording fees, the closing attorney’s fees, any owner’s title policy they choose, and prorated property taxes.
How much does a closing attorney charge in Georgia? Georgia law does not set closing attorney fees, so they vary by firm and by transaction. Ask for a written quote early, and compare it to the figures on your Loan Estimate and Closing Disclosure.
Does the buyer pay the transfer tax in Georgia? Usually not. The seller commonly pays it, but the contract controls.
Is there an intangible tax on a cash purchase? No. The intangible recording tax applies to a security deed securing a long-term note, so a cash purchase has none.
Is the intangible tax capped? Yes. The maximum on any single note is $25,000 (O.C.G.A. § 48-6-61).
Why does a Georgia closing involve an attorney? The Supreme Court of Georgia has held that conducting a real estate closing is the practice of law, so a licensed Georgia attorney must conduct it (In re UPL Advisory Opinion 2003-2, 277 Ga. 472 (2003)).
What is the bottom line?
Georgia closing costs follow formulas, not guesses: the transfer tax runs about $1 per $1,000 of the price, the intangible recording tax runs $1.50 per $500 of a long-term loan up to $25,000, and the clerk charges $25 per recorded instrument. Everything else depends on your contract and your lender, so read both before closing day.
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This article is provided for general informational purposes and does not constitute legal advice or create an attorney-client relationship. It reflects the Official Code of Georgia Annotated as published for 2025 and authority available as of October 2026. Every transaction is different. Consult a Georgia real estate attorney about your closing.
