Eight Georgia Closing Myths, Checked Against the Source

Each claim below is something we found in search results or AI answers while researching this guide. We are not naming the sites. Each claim is followed by the source that settles it, with the date we checked.

Most of these errors are not malicious. A rate gets rounded in one article, copied into another, and summarized by an AI tool until the rounded number looks like the rule. Firm policies get described as state law. Old form names outlive the forms. The fix is the same each time: go back to the statute or the agency page.

Myth 1: “The transfer tax is about 1 percent of the price.”

The Georgia Department of Revenue says the transfer tax is based on the sale price at $1 for the first $1,000 and 10 cents for each additional $100. (Georgia Department of Revenue, Real Estate Transfer Tax page, checked 2026-10-19)

One dollar per $1,000 is a tenth of a percent, not one percent. On a hypothetical $400,000 sale, a 1 percent figure would suggest $4,000. The statute rate gives $400. That is a big gap to carry into a seller’s net sheet.

Myth 2: “The intangible tax is $1 per $500.”

The rate is $1.50, not $1. On a hypothetical $320,000 loan, the wrong rate gives $640 and the right one gives $960. Use the intangible tax calculator to check any quote.

Myth 3: “A Georgia statute requires an attorney, and it was written into law recently.”

Under Supreme Court of Georgia rulings, it is the unauthorized practice of law for anyone other than a licensed Georgia attorney to close a real estate transaction for a seller, borrower or lender. (Supreme Court of Georgia, In re UPL Advisory Opinion 2003-2, 277 Ga. 472 (2003), opinion text (PDF) hosted by the State Bar of Georgia, checked 2026-10-19)

The rule comes from the Supreme Court of Georgia. A Senate bill would have listed the Court’s closing opinions in the code, but we could not confirm on an official page that it passed, so we treat the Court’s rulings as the rule.

A 2025 Georgia Senate bill listed the Supreme Court of Georgia's real estate closing opinions, including Formal Advisory Opinion 04-1 (August 6, 2004) and In re Formal Advisory Opinion 13-1 (September 22, 2014). (Georgia General Assembly, Senate Bill 90 (2025-2026 session), LC 52 0714, bill text as introduced (PDF), checked 2026-10-19)

More on this in the attorney-closing rule, explained.

Myth 4: “The seller pays the transfer tax, and that is the end of it.”

The state says who is liable. The contract says who actually pays at closing, and buyers and sellers can agree to move it. The same goes for most closing costs: read your contract, not a blog’s rule of thumb.

This matters most when you compare offers or build a net sheet. Two offers at the same price can leave a seller with different proceeds if one asks the seller to cover costs the other leaves with the buyer. Your agent can walk you through the contract terms, and your closing attorney applies them on the settlement statement.

Myth 5: “Georgia law says anything over $5,000 has to be wired,” or “any cashier’s check is fine.”

The law limits ordinary checks and lists specific kinds of payment it accepts. It does not turn every cashier’s check into good funds; the cashier’s check exception has its own conditions. Many closing attorneys also have their own wire-only policies, and those are firm policy, not the statute. Ask your closing attorney which forms of payment they accept, and confirm any wiring instructions by phone at a number you already have. See wire fraud and good funds.

Myth 6: “Any change to the Closing Disclosure restarts the three-day wait.”

Only three kinds of change restart the wait. Everything else gets corrected on a revised form given at or before closing. Note also that, for this rule, Saturdays count as business days. While we are here: if a page tells you to expect the old HUD-1, the form the consumer bureau describes for your loan is the Closing Disclosure.

The Closing Disclosure is a five-page form with final details of your loan, including loan terms, projected monthly payments and closing costs. (CFPB, Ask CFPB: What is a Closing Disclosure? (page last modified Sept. 6, 2024), checked 2026-10-19)

Myth 7: “The buyer keeps the seller’s homestead exemption.”

A sale is a change of ownership, so the seller’s exemption does not carry over. The buyer applies in their own name, and because eligibility turns on January 1, a buyer who closes later in the year usually waits until the next tax year. Lumpkin County’s filing date and the state’s newer appeal-window rule are covered on our Lumpkin County recording and property tax page; check with the Tax Commissioner or Assessor before relying on a date.

Myth 8: “You have to buy an owner’s title policy.”

The policy a lender requires protects the lender. The owner’s policy is the one that protects you, and it is your choice. That is a reason to ask about it, not a reason to assume it is already in your quote.

How to check a claim yourself

• Look for the statute section or agency page behind the number. If there is none, treat the number as a guess.
• Check the date. Rates and forms change, and old pages linger in search results.
• Ask your closing attorney to confirm anything that changes what you bring or wire to closing.

Questions buyers ask

Written by the Dahlonega Closing Guide Editorial Team. AI tools help us draft; people check every fact against its source before it publishes.

Education, not legal advice. Statutes, fees and forms change; every rule on this page links to the law or office that sets it. Your closing attorney and your contract decide what applies to your closing.