​​​Whether buying or selling a home in Georgia, the price you agree on is only part of the financial picture. At closing, both parties will see a series of fees, taxes, and prorated expenses known as closing costs. These costs cover legal work, title protection, lender requirements, and government charges required to transfer ownership.

 

​This guide breaks down who pays what, why these costs exist, and how financing changes the numbers.

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What Are Closing Costs?

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Closing costs are the transaction expenses required to legally transfer property ownership. They appear on the Closing Disclosure (CD) and are separate from the purchase price.

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Some are:

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• Required by the lender

• Required by the state or county

• Part of the legal title transfer process

• Negotiable between buyer and seller

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Section 1: Buyer Closing Costs

 

​Buyers typically have more closing costs, especially if they are financing.

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Loan-Related Costs (Financed Buyers Only)

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These are required by the mortgage lender:

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• Loan origination fee

• Underwriting fee

• Appraisal fee

• Credit report fee

• Flood certification fee

• Tax service fee

• Prepaid interest

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The above costs do not apply to cash buyers.

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Title & Attorney Fees (All Buyers)

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Georgia is an attorney-closing state, so legal and title services are required:

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• Closing attorney fee

• Title search fee

• Settlement/escrow coordination fee

• Owner’s title insurance policy (optional but recommended)

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Additional for Financed Buyers

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​Lender’s title insurance policy (required)

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Government & State Taxes

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Georgia Intangible Mortgage Tax (Financed Buyers Only)​

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A one-time state tax on new mortgage loans, based on the loan amount.

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Recording Fees

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Charged by the county to record the deed and (if applicable) the mortgage.

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Prepaid & Escrow Costs (Mostly Financed Buyers)

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Lenders often require advance payments into escrow accounts:

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• First year of homeowners insurance

• Property tax escrow deposits

• HOA escrow deposits (sometimes required)

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Typical Buyer Closing Cost Range

 

• ​Cash Buyers: Often around 1%–2% of purchase price

• Financed Buyers: Usually 2%–5% of purchase price

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Section 2: Seller Closing Costs​

 

Sellers have fewer categories, but larger totals due to commissions.

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Agent Commissions

 

Typically the largest seller expense. Paid to the listing and buyer’s agents according to the listing agreement.

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Title & Legal Fees

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• Owner’s title insurance policy (often seller-paid in Georgia)

• Closing attorney fee (seller portion, depending on contract)

 

Government Fees

 

Georgia Real Estate Transfer Tax​

 

A state tax required to record the deed, based on the sale price of the home.

 

Possible Additional Seller Costs

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• Home warranty (if offered as incentive)

• Repair credits

• HOA transfer or disclosure fees

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Typical Seller Closing Cost Range

 

​Usually 6%–10% of the sale price, mostly driven by commissions.

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​​Loan Origination & Underwriting

• Cash Buyer: No

• Financed Buyer: Yes

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Appraisal

• Cash Buyer: No

• Financed Buyer: Yes

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Lender Title Insurance

• Cash Buyer: No

• Financed Buyer: Yes

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Georgia Intangible Mortgage Tax

• Cash Buyer: No

• Financed Buyer: Yes

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Escrow for Taxes & Insurance

• Cash Buyer: No

• Financed Buyer: Yes

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Attorney & Title Search

• Cash Buyer: Yes

• Financed Buyer: Yes

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Section 3: Prorated Costs (Shared Adjustment)

 

Property Taxes

Prorated between buyer and seller based on the number of days each owned the property during the tax year.

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HOA Dues

Prorated so each party pays only for their period of ownership.

 

Rent (If Tenant Occupied)

Any prepaid rent is credited to the buyer for the portion of time they will own the property

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Section 4: Key Georgia Taxes Explained

 

Georgia Real Estate Transfer Tax

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• Based on the sale price

• Required to record the deed

• Typically paid by the seller

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Georgia Intangible Mortgage Tax

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• Based on the loan amount

• Only applies when a buyer gets a mortgage

• Typically paid by the buyer​

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These are separate taxes and often confused with each other.

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Section 5: Cash Buyer vs. Financed Buyer (Seller Perspective)​

 

Appraisal Required

 

 

• Cash Buyer: No

• Financed Buyer: Yes

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Financing Contingency

 

• Cash Buyer: No

• Financed Buyer: Yes

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Closing Timeline

 

• Cash Buyer: Typically faster

• Financed Buyer: Usually longer due to lender process

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Risk of Loan Denial

 

• Cash Buyer: None

• Financed Buyer: Possible if financing falls through

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Seller Closing Costs

 

• Cash Buyer: Same

• Financed Buyer: Same

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💡 The difference for sellers is risk and speed, not closing cost totals.

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Section 6: Cash Buyer vs. Financed Buyer (Buyer Perspective)​

 

 

Loan Origination & Underwriting

 

• Cash Buyer: No

• Financed Buyer: Yes

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Appraisal

 

• Cash Buyer: No

• Financed Buyer: Yes

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Lender Title Insurance

 

• Cash Buyer: No

• Financed Buyer: Yes

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Georgia Intangible Mortgage Tax

 

• Cash Buyer: No

• Financed Buyer: Yes

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Escrow for Taxes & Insurance

 

• Cash Buyer: No

• Financed Buyer: Yes

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Attorney & Title Search​

 

• Cash Buyer: Yes

• Financed Buyer: Yes

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Final Takeaways

 

​Buyers and sellers both have closing costs beyond the purchase price

 

• Financing significantly increases buyer closing costs

• Sellers’ largest cost is usually commission

• Georgia has two key real estate taxes: transfer tax (seller) and intangible mortgage tax (buyer with loan)

• Reviewing estimated closing costs early prevents surprises

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Understanding closing costs helps everyone move through the transaction with clarity, confidence, and fewer last-minute financial shocks.