10.0 Finance & Closing (Georgia) Real Estate License Practice Quiz

• A. new mortgage loans secured by real property in Georgia
• B. the gross sale price of every residential property sold in the state
• C. prepayment of any existing mortgage within the first three years
• D. interest income earned by Georgia-licensed mortgage lenders

Under O.C.G.A. § 48-6-61, Georgia's intangible recording tax is levied on the face amount of long-term notes (mortgages) secured by real property located in Georgia, paid when the security instrument is recorded.

• A. $3.00 per $1,000 of the sale price
• B. $1.00 per $1,000 of the sale price
• C. $5.00 per $1,000 of the sale price
• D. 2% of the sale price

O.C.G.A. § 48-6-1 imposes a transfer tax of $1.00 per $1,000 (or $0.10 per $100) of the purchase price.

• A. $1.00 per $1,000 of the loan amount
• B. $3.00 per $1,000 of the loan amount ($1.50 per $500)
• C. $10.00 per $1,000 of the loan amount
• D. 1% of the total loan amount

O.C.G.A. § 48-6-61 sets the intangible recording tax at $1.50 per $500 of the principal amount of the note, which equals $3.00 per $1,000.

• A. $25
• B. $100
• C. $250
• D. $750

Transfer tax = $250,000 ÷ $1,000 × $1.00 = $250.

• A. proceed to closing immediately because TRID tolerances are self-correcting
• B. send the revised CD and close within 24 hours provided the borrower verbally approves
• C. allow the borrower to waive the new waiting period by signing a waiver form
• D. issue the revised Closing Disclosure and wait an additional three business days before closing

TRID provides that significant changes to the Closing Disclosure, including APR increases beyond the allowed tolerance, trigger a new three-business-day waiting period before the loan can close.

• A. $200
• B. $300
• C. $600
• D. $1,000

Intangible recording tax = $200,000 ÷ $1,000 × $3.00 = $600. ($200 thousand × $3 per thousand = $600.)

• A. paid in advance at the beginning of each calendar year
• B. collected monthly by the state government through the escrow account
• C. levied by the federal government and remitted to Georgia counties
• D. paid in arrears, meaning taxes for the current year are collected after the year ends

Georgia ad valorem taxes are billed and paid in arrears, typically in the fall for the current calendar year, which means at a mid-year closing the seller owes a proration for the period they owned the property.

• A. the buyer, as part of the total loan closing costs
• B. both buyer and seller equally as a shared closing cost
• C. the closing attorney, who collects from the title insurance underwriter
• D. the seller (grantor), based on the amount of consideration received

Under O.C.G.A. § 48-6-1, the real estate transfer tax is imposed on the grantor (seller) and is calculated at $1.00 per $1,000 of the purchase price.