Frequently Asked Questions
How Much Is Georgia Intangibles Tax?
It is $1.50 for each $500.00 or fraction thereof of the face amount of the note secured by the recording of the security instrument, usually a deed to secure debt. Maximum tax is $25,000.00. More here.
Is There A Penalty For Failure To Pay Georgia Intangibles Tax?
Failure to pay the intangibles tax levied pursuant to O.C.G.A. §48-6-77 is a bar to the collection by any action, foreclosure, the exercise of power of sale, or other means of the indebtedness secured by any instrument (deed to secure debt, etc) required to be recorded. More here.
Are There Exemptions From Payment Of Georgia Intangible Tax?
Who Pays Georgia Intangibles Tax?
The tax is the obligation of the holder of the note, but it can be passed on the borrower or mortgagor. In almost all loan transactions payment of intangibles tax is passed on to the borrower or mortgagor.
What Is An ALTA Survey?
The American Land Title Association (“ALTA”) representing the title insurance industry and the National Society of Professional Surveyors (“NSPS”) representing the survey industry jointly adopt Minimum Standard Detail Requirements for ALTA/NSPS Land Title Surveys, and surveys prepared pursuant thereto are commonly referred to as “ALTA Surveys” . An ALTA Survey usually contain greater detail than property surveys prepared to non-ALTA Survey standards. Most lenders making commercial loans over a threshold loan amount require ALTA Surveys.
Georgia Real Estate Recording Fees
Effective January 1, 2020, fees for recording the instruments listed below on the records of Clerk of Superior Court in Georgia are $25.00 per instrument (no per page charge):
- Deeds (including warranty deeds, limited warranty deeds, quitclaim deeds, deeds to secure debt and assignment of leases and rents)
- Cancellation, satisfaction, release or assignment
- Uniform Commercial Code – Financing Statements (UCC-1, UCC-3, UCC-5)
- General execution or lien recordings, materialman’s liens, lis pendens, federal tax liens, etc
Cross indexing to previous instrument – No Fee
Prior to January 1, 2020 the charge for recording deeds and some other instruments was $10.00 for the first page and $2.00 for each page thereafter. That fee schedule no longer applies to the instruments listed above. See O.C.G.A. § 15-6-77(f).
Do I Need A Property Survey If I Am Getting Title Insurance?
Yes, you’ll need one. The standard title insurance policy includes an exclusion for matters affecting title that would be disclosed by an accurate survey of the land. The policy doesn’t cover title matters that a current survey would reveal. The exclusion can be removed by providing the title insurer with a current survey of the property. More here.
What Is A Limited Warranty Deed?
A general warranty of title contained in a general warranty deed is a covenant against the valid claims of all persons, and includes covenants of the right to sell, the right of quite enjoyment and freedom from encumbrances. (O.C.G.A §44-5-62). In the case of a seller giving a general warranty deed to a purchaser, the seller would become liable for title problems that occur prior to the time the seller took title to the property, such as an unpaid mortgage of record owed by someone owning the property before the seller purchased it. A limited warranty deed limits the seller’s liability to title defects created by the seller only, and those holding title under him, but does not make the seller liable for title defects that arose prior to the time the seller took title. The usual general warranty deed can be converted to a limited warranty deed by the addition of the qualifying words, “claiming by, through or under the grantor herein”. Georgia Real Estate Law and Procedure, §19-168 footnote 2. The term “limited warranty deed” is used in Georgia, but persons out of state sometimes refer to the Georgia limited warranty deed as a “special warranty deed”. Many real estate contacts provide that the seller will give a limited warranty deed only.
Why Do I Need Georgia Borrower Counsel Opinion?
Lenders making loans exceeding a certain amount secured by commercial real estate usually require the attorney for the borrower to provide an opinion to the lender stating that, among other things, the borrower legally exists, has power and authority to execute the loan documents, and that the loan documents are enforceable. More here.
How Are “Reasonable Attorney’s Fees” Calculated On A Note In Georgia?
If a note or other evidence of indebtedness provides for the payment of “reasonable attorney's fees” without specifying any specific percent, such provision shall be construed to mean 15 percent of the first $500.00 of principal and interest owing on such note or other evidence of indebtedness and 10 percent of the amount of principal and interest owing thereon in excess of $500.00. If such note or other evidence of indebtedness provides for attorney's fees in some specific percent of the principal and interest owing thereon, such provision and obligation shall be valid and enforceable up to but not in excess of 15 percent of the principal and interest owing on said note or other evidence of indebtedness. O.C.G. A. §13-1-11. The term “reasonable attorney’s fees” is found in promissory notes, deeds to secure debt and guaranty agreements and sounds like a bargain, but is a trap for the unwary.