Closing costs on a Savannah purchase come in two layers: the lender, title and prepaid charges buyers see anywhere, and Georgia’s own taxes and fees. Georgia law is specific about who owes each of its lines, and your contract can move some of them.
Key Takeaways
– Georgia’s intangible recording tax is $1.50 for each $500 of the loan, capped at $25,000 per note, and the lender can pass it on to you.
– The transfer tax is $1 for the first $1,000 of the sale price plus 10 cents per additional $100. The seller is liable, but the contract can shift it to the buyer.
– Chatham County charges a flat $25 real estate recording fee, in place since January 1, 2020.
– Compare your Loan Estimate and Closing Disclosure line by line before you sign.
What closing costs does a buyer pay in Savannah?
The Consumer Financial Protection Bureau defines closing costs as “the upfront costs you will be charged to get your loan and transfer ownership of the property” (CFPB).
The total moves with the price, the loan, the loan program and your contract, so the figure that counts is the one on your own Loan Estimate. If this is your first purchase, our first-time home buyer guide for Georgia covers the steps before closing.
What is Georgia’s intangible recording tax?
It’s a state tax charged on your loan amount. The Georgia Department of Revenue sets it at “$1.50 for each $500.00 or fractional part of the face amount of the note,” and “the maximum amount of recording tax on any single note is $25,000” (Georgia Department of Revenue). That’s $3 per $1,000 borrowed, so a $340,000 loan carries $1,020.
The county collects it from the lender before your security deed is recorded. The Department of Revenue says the lender “can pass the amount of tax on to the borrower,” so check your Loan Estimate to see whether it’s been passed to you.
Who pays Georgia’s transfer tax, the buyer or the seller?
The law puts it on the seller. The Department of Revenue says “the seller is liable for the real estate transfer tax, though frequently the parties agree in the sales contract that the buyer will pay the tax” (Georgia Department of Revenue). Read your contract’s closing-cost terms before you sign.
The rate runs off the sale price: $1 for the first $1,000, then 10 cents for each additional $100 or part of $100. A $350,000 sale comes to $350, paid before the deed can be recorded.
The tax is declared on the PT-61 form, filed free online through the Georgia Superior Court Clerks’ Cooperative Authority, which calculates the tax (GSCCCA). Exemption questions go to the county’s Clerk of Superior Court.
How much does it cost to record a deed in Chatham County?
A flat $25. Under Georgia’s House Bill 288, Chatham County’s clerk states “the flat/predictable real estate fee is $25,” effective January 1, 2020 (Chatham County Clerk of Superior Court). The clerk’s fee schedule lists deeds at $25.00 and other recordings on the deed record at $25.00 each. A financed purchase records both your deed and the lender’s security deed.
On the loan side, Georgia’s Department of Banking and Finance imposes a $10.00 fee on the closing of residential mortgage loans under the Georgia Residential Mortgage Act, and “the fee shall be paid by the borrower” (Georgia Department of Banking and Finance).
Do you need title insurance and a closing attorney in Georgia?
Your lender will usually require a lender’s title policy, and a Georgia attorney closes the sale. The CFPB says lender’s title insurance “is usually required to get a mortgage loan” but “does not protect your investment in the home (your equity).” An owner’s policy is your choice, and it can protect you if someone later sues over a claim against the home from before you bought it.
Among the closing services you can shop for, the CFPB says “title services are the largest costs in this category, and in most cases you can shop for them.” Your lender has to give you a list of providers (CFPB). If you add an owner’s policy, the CFPB says using one provider for both usually lowers the total.
As for the closing itself, the Supreme Court of Georgia has held that “it is the unauthorized practice of law for someone other than a duly-licensed Georgia attorney to close a real estate transaction” (Supreme Court of Georgia opinion, via the State Bar of Georgia).
What are prepaids and escrow at closing?
They’re costs you pay ahead of time at closing. Prepaids include “interest on your loan between the time you close and the end of that month,” and it’s common to pay the first year’s homeowner’s insurance premium at closing. The initial escrow payment “will establish an initial balance in your escrow account” (CFPB).
Your insurance company sets the homeowner’s premium, and you choose the company; property taxes are set by your local or state government (CFPB). Get a homeowner’s insurance quote on the specific address early so you can check the lender’s estimate. Where the seller owes prior taxes you’ll pay later, the Closing Disclosure shows the seller “reimbursing you now to cover these expenses.”
How do you check your Loan Estimate and Closing Disclosure?
Put them side by side. The lender must send a Loan Estimate “within three business days of receiving your application,” on a standard form all lenders are required to use (CFPB). The Closing Disclosure has to reach you “at least three business days before you close on the mortgage loan” (CFPB). Origination charges are the lender’s own fees, so compare them across lenders. Points buy a lower rate, while lender credits offset costs, typically in exchange for a higher rate. The seller credit should match your contract. Cash to close typically goes by cashier’s check or wire transfer; ask your closing attorney how.
How are closing costs different with a VA loan?
A VA loan adds the VA funding fee, which the CFPB says appears under Services You Cannot Shop For on the Loan Estimate (CFPB). VA says you can pay it at closing or finance it, and borrowers receiving VA compensation for a service-connected disability don’t pay it (VA). VA also says buyer and seller can negotiate who pays costs such as state and local taxes, title insurance and the recording fee. Ask your VA-approved lender how each choice changes your cash to close.
Frequently Asked Questions
How much is the intangible tax on a mortgage in Georgia?
Georgia charges $1.50 for each $500 of the loan amount, capped at $25,000 on a single note, according to the Georgia Department of Revenue. That makes the tax on a $340,000 loan $1,020. The tax is collected from the lender, which may pass it to the borrower, so check your Loan Estimate.
Does the buyer or the seller pay transfer tax in Georgia?
The seller is liable, according to the Georgia Department of Revenue, but the parties frequently agree in the sales contract that the buyer will pay it. The rate is $1 for the first $1,000 of the sale price plus 10 cents for each additional $100, so a $350,000 sale comes to $350.
Do you need an attorney to close on a house in Georgia?
Yes, a licensed Georgia attorney closes the transaction. The Supreme Court of Georgia has held that it is the unauthorized practice of law for anyone other than a duly licensed Georgia attorney to close a real estate transaction. Ask the attorney for the title and settlement charges before closing day.
Can the seller pay my closing costs in Savannah?
Yes, if your contract says so. The CFPB describes a seller credit as the amount the seller has agreed to contribute to your closing costs, and it shows on the Closing Disclosure. Loan programs can limit seller help, and VA caps seller concessions on its loans, so ask your lender.
Planning your Savannah purchase
Weighing down payment help? Our guide to Georgia Dream down payment assistance covers the state program, and moving to Savannah covers your first weeks in town. When you’re ready to look at homes, get in touch with our team and we’ll go through your contract’s closing-cost terms before you make an offer.