Georgia — Taxes & Land Use — Georgia Real Estate — State Law Practice Test

This Georgia Real Estate — State Law Georgia — Taxes & Land Use practice set has 8 practice questions based on the official exam materials, each with an instant explanation.

Sample questions

Three questions from the Georgia — Taxes & Land Use bank with the correct answer and an explanation. The practice quiz above draws 8 questions at random from the same bank.

1. In Georgia, the state/county real estate transfer tax under O.C.G.A. §48-6-1 is imposed at what rate on the consideration paid for the property?

   • $1.00 for the first $1,000 plus 10¢ per additional $100 (about $1 per $1,000) — Correct answer
   • $1.50 for every $500 of the sale price
   • A flat 1% of the total sale price
   • $2.00 for each $1,000 of consideration

   Explanation: Georgia's transfer tax is $1.00 for the first $1,000 of consideration plus 10¢ for each additional $100 — i.e., $0.10 per $100, which works out to about $1.00 per $1,000 of value. It is paid when the deed is recorded. Transfer tax（不动产转让税 / impuesto de transferencia）: a tax on the consideration paid, due on recording the deed. Source: O.C.G.A. §48-6-1.

   Handbook: Georgia Taxes & Land Use — real estate transfer tax rate (O.C.G.A. §48-6-1)

2. Who is customarily responsible for paying the Georgia real estate transfer tax when a deed is recorded?

   • The seller (grantor), customarily, unless the contract states otherwise — Correct answer
   • The buyer (grantee) in every case, with no exceptions
   • The lender financing the purchase
   • The county tax assessor, out of public funds

   Explanation: The Georgia transfer tax is a tax on the conveyance and is customarily paid by the SELLER (the grantor), collected by the clerk of superior court when the deed is recorded; parties may agree otherwise by contract. Grantor（出让人 / otorgante）: the party conveying title by deed. Source: O.C.G.A. §48-6-1.

   Handbook: Georgia Taxes & Land Use — transfer tax paid by seller on recording (O.C.G.A. §48-6-1)

3. Georgia imposes an intangible recording tax on a long-term note secured by real estate. Under O.C.G.A. §48-6-61, at what rate is it charged on the loan amount?

   • $1.50 for each $500 of the face amount of the note — Correct answer
   • $1.00 for each $1,000 of the note
   • 10¢ for each $100 of the note
   • A flat 2% of the loan principal

   Explanation: Georgia's intangible recording tax on a long-term security instrument (a note over three years) is $1.50 for each $500 of the face amount of the note. It is paid when the security deed is recorded and is separate from the transfer tax. Intangible recording tax（无形资产登记税 / impuesto de registro intangible）: a tax on the principal of a long-term note secured by realty. Source: O.C.G.A. §48-6-61.

   Handbook: Georgia Taxes & Land Use — intangible recording tax rate (O.C.G.A. §48-6-61)