February 18, 2026

Georgia Transaction Guide: How Closings Work

Q: What is the due diligence period in Georgia?

The due diligence period in Georgia gives the buyer an unrestricted right to terminate the contract for any reason during a negotiated timeframe — typically 7 to 14 days on retail deals. This is similar to the Texas option fee concept, except in Georgia the buyer does not pay a separate fee for this right (it is built into the standard GAR contract). If the buyer terminates during due diligence, they receive their earnest money back. After the due diligence period expires, the earnest money becomes non-refundable.

Q: What is the Georgia real estate transfer tax?

Georgia charges a real estate transfer tax of $1.00 per $1,000 of the sale price. On a $200,000 property, the transfer tax is $200. An additional intangibles tax of $1.50 per $500 ($3.00 per $1,000) applies to any new mortgage recorded. The seller customarily pays the transfer tax on the deed; the buyer pays the intangibles tax on the new mortgage.

Georgia is an attorney-closing state with several transaction mechanics that differ significantly from the title company states most investors are familiar with. An attorney is required at closing. The due diligence period gives buyers an unrestricted termination right (similar to the Texas option fee, but without a separate fee). And the buyer — not the seller — customarily pays for the owner's title insurance policy, which is the opposite of the convention in Texas, Indiana, and most other states. These differences are not minor details; they affect your closing costs, your timeline, and your contract negotiation strategy.

This guide covers how closings work for both retail and investment transactions in Georgia. For Georgia-specific wholesaling compliance, see our Georgia compliance guide.

How Closings Work in Georgia

Georgia requires an attorney to be involved in real estate closings. This is not merely customary — it is a legal requirement. The closing attorney handles the title examination, prepares the closing documents (deed, settlement statement, affidavits, transfer tax declarations), supervises the signing, manages escrow, disburses funds, and records the deed at the county superior court clerk's office.

The attorney acts as the neutral party in the transaction, similar to the role a title company plays in Texas or Ohio. Title insurance is issued through a title insurance underwriter, but the closing attorney serves as the title agent — they conduct the title search, provide the title opinion, and facilitate the issuance of the policy.

Closings typically take place at the attorney's office. Both parties sign at the same appointment in most transactions, though separate signings can be arranged. The attorney walks the parties through each document, explains the settlement statement, collects signatures, and coordinates the wire transfers. After signing, the attorney records the deed and disburses funds — usually the same day or the next business day.

The Georgia Association of Realtors (GAR) publishes standard contract forms that are used in most residential transactions. The GAR Purchase and Sale Agreement is the most common contract, and it includes provisions for due diligence, earnest money, financing contingencies, and closing costs that reflect Georgia's specific customs.

For investors coming from title company states, the main adjustment is that you are working with a law firm rather than a title company. The process is substantively the same, but the professional overlay is different. Find an attorney who understands investment transactions — not every real estate attorney in Georgia has experience with assignments, double closes, or the pace at which investor deals need to move. For more on attorney-closing states generally, see our attorney closing states guide.

Termination Rights and Due Diligence

Retail / Owner-Occupant Deals

Georgia uses a due diligence period that is similar in concept to the Texas option fee but with one important difference: the buyer does not pay a separate fee for the termination right. The standard GAR contract includes a negotiated due diligence period — typically 7 to 14 days on retail transactions — during which the buyer has an unrestricted right to terminate the contract for any reason.

During the due diligence period, the buyer can inspect the property, review the title, evaluate the neighborhood, check flood zones, get appraisals, and make any other determinations they need. If the buyer is not satisfied for any reason, they can terminate and receive their earnest money back in full. No justification or inspection report is required. This is an absolute termination right during the due diligence window.

After the due diligence period expires, the earnest money becomes non-refundable (sometimes called "going hard"). From that point forward, the buyer cannot terminate without forfeiting their deposit unless a specific surviving contingency (such as financing) has not yet been satisfied.

This structure is powerful for buyers and creates more risk for sellers than an inspection contingency (where termination typically needs to be tied to inspection findings). It is, however, very similar to the Texas option fee concept — the key difference being that Texas buyers pay for the right, while Georgia buyers get it as part of the standard contract. For a comparison of these termination mechanisms, see our option fee vs inspection period guide.

Investment / Wholesale Deals

Off-market investment deals to end buyers in Georgia typically do not include a due diligence period. The deposit is non-refundable from day one, and the buyer takes the property as-is. The investor buyer is purchasing at a discount because the property needs work — the discount is the consideration for accepting the property in its current condition without a termination right.

On the buy side (wholesaler contracting with the seller), wholesalers may negotiate a due diligence period to give themselves time to find an end buyer. This is analogous to the option period wholesalers use in Texas on the buy side. The key is that the due diligence period gives the wholesaler a clean exit if they cannot find a buyer.

On-market investment deals using the standard GAR contract will include a due diligence period by default. Experienced investors may shorten it (3-5 days) or waive it to make their offer more competitive, especially in hot markets like the Atlanta metro area.

Earnest Money

Retail Deals

Earnest money on retail transactions in Georgia is typically 1-2% of the purchase price. On a $300,000 home, that is $3,000 to $6,000. The earnest money is deposited with the closing attorney's escrow account or the listing broker's escrow account within the timeframe specified in the GAR contract (usually within 5 banking days of the binding agreement date).

During the due diligence period, the earnest money is fully refundable if the buyer terminates. After the due diligence period expires, the earnest money becomes non-refundable — the buyer forfeits it if they default. At closing, the earnest money is credited toward the purchase price.

Investment and Wholesale Deals

On the buy side, wholesalers in Georgia typically deposit $500 to $2,000 in earnest money. If the contract includes a due diligence period, the wholesaler can terminate and get the deposit back during that window. Once the due diligence period expires (or if there is no due diligence period), the deposit is at risk.

On the sell side, end buyers put up $2,000 to $5,000 or more in non-refundable earnest money. No due diligence period. The deposit is at risk from execution. The closing attorney typically holds the deposit in their escrow account. In some off-market wholesale transactions, the wholesaler holds the end buyer's deposit — but having the closing attorney hold it is best practice and reduces disputes. See our non-refundable deposit guide for more.

Who Pays for What

Retail Transaction Customs

Owner's title policy: Buyer pays. This is the custom in Georgia and is the opposite of Texas, Indiana, Kentucky, and most other states. This is one of the most important differences to understand when doing deals in Georgia — it directly affects your closing cost calculations. If you are a buyer in Georgia, budget for the owner's title policy. If you are a seller, you are not expected to cover it.
Lender's title policy: Buyer pays (if financing).
Transfer tax: $1.00 per $1,000 of the sale price. On a $200,000 property, the transfer tax is $200. The seller customarily pays the transfer tax on the deed.
Intangibles tax: $1.50 per $500 ($3.00 per $1,000) on any new mortgage recorded. This is paid by the buyer (since the buyer is the one recording the mortgage). On a $160,000 mortgage, the intangibles tax is $480. Cash buyers do not pay this.
Recording fees: Charged by the county superior court clerk. Fees vary by county but are generally modest.
Attorney/closing fee: The closing attorney charges a fee, typically $500-$1,000. This is often paid by the buyer in Georgia, though it is negotiable.
Agent commissions: Seller pays listing and buyer's agent commissions (5-6% total customary).
Tax prorations: Georgia property taxes are prorated to the date of closing. Taxes are paid in arrears. The seller owes a credit to the buyer for the period before closing.

Investment Transaction Customs

No agent commissions on off-market deals. The buyer still customarily pays for the owner's title policy (this is Georgia's custom regardless of transaction type). The transfer tax is a state tax and applies to all deed transfers. The intangibles tax applies only when a new mortgage is recorded, so cash investor purchases avoid this cost entirely — a meaningful savings on investment deals.

The fact that the buyer pays for title insurance in Georgia is particularly significant for investors doing volume. If you are buying 10 properties a year, you are paying for 10 owner's title policies that would be covered by the seller in Texas or Indiana. Factor this into your acquisition cost analysis. For a state-by-state comparison, see our closing costs by state guide.

Title Work and Insurance

The closing attorney conducts the title examination in Georgia. The attorney (or a paralegal under the attorney's supervision) searches the county records going back at least 50 years (the Georgia standard), reviews the chain of title, and issues a title opinion. This opinion forms the basis for the title insurance policy issued by the underwriter.

Owner's title policy: Protects the buyer against title defects. The buyer pays for this in Georgia.

Lender's title policy: Required by the mortgage lender. The buyer pays.

Common title issues in Georgia: Property tax liens and code enforcement liens are common in Atlanta and other urban areas. Security deed issues (Georgia uses security deeds rather than mortgages) can be complex, especially when prior lenders have been acquired or merged. Unreleased security deeds from paid-off loans are a recurring problem. HOA liens are common in suburban developments around Atlanta, where HOA-governed communities are prevalent. Probate issues arise frequently on inherited properties, and Georgia's probate process can be slow in some counties. Boundary disputes are more common in rural areas where property descriptions rely on metes and bounds rather than recorded plats.

For more on how title insurance works, see our title insurance guide.

Wholesale-Specific Closing Notes

Assignment deals: Contract assignments work in Georgia. The wholesaler's assignment fee appears on the settlement statement. The closing attorney reviews the assignment contract as part of the closing process. Because an attorney is reviewing the documents, there is professional oversight of the transaction structure — the attorney will flag any issues with the assignment or disclosures. Make sure you are working with an attorney who has handled assignment closings before.

Double closes: Double closings are available in Georgia, but you need an attorney who is willing and able to handle them. The closing attorney handles both the A-to-B and B-to-C transactions. Transactional funding is available from national providers. Be aware that the transfer tax applies to both closings ($1/$1,000 on each), and you may owe two attorney fees. Factor these costs into your spread calculation.

Investor-friendly attorneys: In the Atlanta metro area, there are closing attorneys who specialize in investor transactions and handle assignments and double closes regularly. Outside Atlanta, finding an experienced investor closing attorney may require more effort. The local REIA or investor networking groups are the best source of referrals. An attorney who primarily handles retail closings may push back on unfamiliar structures. See our investor-friendly title company guide — the same principles apply to finding an investor-friendly closing attorney in Georgia.

Buyer pays title insurance: Remember that in Georgia, the end buyer pays for the owner's title policy. This means your end buyer's closing costs are higher than they would be in Texas or Indiana. Make sure your buyers understand the Georgia cost structure — especially out-of-state investors who may assume the seller pays for title insurance. Factor this into your deal marketing and pricing.

Due diligence on the buy side: Wholesalers in Georgia can use the due diligence period in the GAR contract as their exit strategy on the buy side, similar to how Texas wholesalers use the option period. Negotiate a due diligence period long enough to find a buyer (14-30 days), and you have a clean termination right with full earnest money refund if the deal does not work out.

Typical Closing Timeline

Retail (financed): 30-45 days from binding agreement to closing. The due diligence period (7-14 days), lender underwriting, appraisal, and attorney title work all run concurrently.

Cash investor: 10-14 days with clean title. The closing attorney needs time to complete the title examination and prepare documents. In the Atlanta market, experienced investor attorneys can turn these around efficiently. Rural counties may be slower due to limited recording office hours and less available title information.

What affects timeline in Georgia: Title examination by the attorney is thorough and can take 5-10 business days. Unreleased security deeds from prior lenders are a common delay. County recording office backlogs vary — Fulton County (Atlanta) can be slower than suburban counties. Probate situations require court approval. HOA clearance letters may take a week or more in large HOA-managed communities.

Key Differences from Other States

Attorney required: Georgia requires an attorney at closing, unlike title company states (Texas, Ohio, Indiana, Florida, Oklahoma). This adds professional oversight and potentially some cost, but also means you have a lawyer reviewing everything before you sign.
Due diligence period: Georgia's unrestricted termination right during the due diligence period is similar to the Texas option fee, but the buyer does not pay a separate fee. The termination right is built into the standard GAR contract.
Buyer pays owner's title insurance: This is the biggest cost difference. In Texas, Indiana, Kentucky, and most other states, the seller pays. In Georgia, the buyer pays. This is a line-item cost that directly increases the buyer's closing expenses — potentially $1,000-$3,000+ depending on the purchase price.
Security deeds: Georgia uses security deeds rather than mortgages. The practical difference is minimal for most transactions, but it affects the legal framework around foreclosures and lien releases.

Frequently Asked Questions

Is an attorney required at closing in Georgia?

Yes. Georgia requires an attorney to be involved in real estate closings. The attorney handles the title examination, prepares closing documents, supervises the signing, and manages the disbursement of funds. This applies to all residential real estate transactions.

What is the due diligence period in Georgia?

The due diligence period gives the buyer an unrestricted right to terminate the contract for any reason during a negotiated timeframe — typically 7 to 14 days on retail deals. The buyer does not pay a separate fee for this right (unlike the Texas option fee). If the buyer terminates during due diligence, they receive their earnest money back. After it expires, the earnest money becomes non-refundable. For a comparison with other termination mechanisms, see our option fee vs inspection period guide.

Does the buyer really pay for title insurance in Georgia?

Yes. Georgia is one of the few states where the buyer customarily pays for the owner's title insurance policy. This is the opposite of the custom in Texas, Indiana, Kentucky, and most other states. Budget for both the owner's policy and the lender's policy (if financing) when calculating closing costs on a Georgia deal.

What is the Georgia real estate transfer tax?

Georgia charges a transfer tax of $1.00 per $1,000 of the sale price. An additional intangibles tax of $3.00 per $1,000 applies to any new mortgage recorded. The seller customarily pays the transfer tax; the buyer pays the intangibles tax. Cash buyers avoid the intangibles tax entirely.

Do investment deals in Georgia include a due diligence period?

Off-market investment and wholesale deals to end buyers typically do not include a due diligence period. The deposit is non-refundable from day one. On-market investment deals using standard GAR contracts will include a due diligence period by default, but experienced investors may shorten or waive it.

Disclaimer

This guide is for informational purposes only and does not constitute legal advice. Transaction customs can vary by county and local market within Georgia. Attorney practices and fees differ between firms. The Georgia Association of Realtors (GAR) contract provisions referenced here may be updated over time. Consult a licensed real estate attorney in Georgia before relying on any information presented here. For Georgia-specific wholesaling compliance, see our Georgia compliance guide.