Buying and Selling a Home in Georgia

This is general information, not legal advice. A Georgia real estate attorney can help with your specific situation.

Purchase Contracts Must Be in Writing

Georgia’s Statute of Frauds requires that any contract for the sale of real estate be in writing and signed by the party to be charged (O.C.G.A. § 13-5-30(4)). A verbal agreement to buy or sell property is unenforceable. The written contract should describe the property, identify the parties, state the purchase price, and include the essential terms such as closing date, earnest money amount, and any contingencies for financing or inspection.

Once a purchase contract is signed, both parties are legally bound to its terms. A buyer who backs out without a valid contractual contingency typically forfeits earnest money; a seller who refuses to close may be subject to a specific performance lawsuit compelling the sale.

No Mandatory Seller Disclosure

Georgia is a caveat emptor — “buyer beware” — state. There is no statute requiring a seller to fill out a property condition disclosure form. Sellers do not have an affirmative legal obligation to volunteer information about the home’s condition simply because a sale is taking place.

However, sellers are not free to deceive. If a buyer asks a specific question, the seller must answer honestly. Under common-law fraud principles, a seller who knowingly conceals a material latent defect — one that a reasonable inspection would not reveal — can be held liable. Georgia REALTORS publishes a voluntary disclosure form that is standard practice in many transactions; when a purchase contract requires disclosure, completing the form honestly becomes a contractual obligation.

The practical implication for buyers: schedule a professional home inspection and ask written questions about any conditions you are concerned about. Do not rely on the seller to volunteer problems.

The Attorney-Closing Requirement

Georgia is one of a small number of states that legally require a licensed attorney to conduct the closing. O.C.G.A. § 44-14-13 states that only an active member of the State Bar of Georgia (or the lender, in limited circumstances) may perform a real estate closing and disburse funds. Conducting a closing without that license is a misdemeanor.

In practice, the closing attorney prepares the deed and closing documents, reviews title, handles the disbursement of sale proceeds and loan funds, and acts as the title insurance agent for the transaction. Buyers typically pay the closing attorney’s fee as part of their closing costs.

Deed Types

Georgia recognizes three common deed types conveying different levels of warranty:

• General Warranty Deed: the grantor warrants title against all claims, from any source at any point in time (O.C.G.A. § 44-5-62). This is the strongest form and the most common in arm’s-length residential sales.
• Limited Warranty Deed: the grantor warrants title only against defects that arose during their ownership period. Common in estate sales and commercial transactions.
• Quitclaim Deed: the grantor conveys whatever interest they hold — if any — with no warranties. Used for transfers between family members, clearing title issues, and similar situations where the parties trust each other.

Title Insurance

Title insurance protects against losses from title defects — liens, forgeries, errors in prior deeds, and similar problems — that existed before the policy date but were not discovered in the title search. In Georgia, the closing attorney typically serves as the title insurance agent and will order a title commitment as part of closing preparation. Lenders almost always require a lender’s title insurance policy. Buyers should consider purchasing an owner’s policy as well.

Recording the Deed and Transfer Tax

After closing, the deed is recorded with the Clerk of the Superior Court in the county where the land is located (O.C.G.A. § 44-2-1). Georgia uses a notice-type recording system: a prior unrecorded deed loses priority over a subsequent purchaser who records without notice of the earlier deed. Recording promptly after closing protects the buyer’s interest.

A real estate transfer tax applies to every deed conveying property for more than $100. The rate under O.C.G.A. § 48-6-1 is $1.00 per $1,000 (or fraction) for the first $1,000 of purchase price, then $0.10 per $100 (or fraction) thereafter. On a $300,000 purchase the transfer tax is approximately $299. The tax is paid at the time of recording. A separate intangibles tax applies to new mortgages and notes secured by real property (O.C.G.A. § 48-6-61) — that tax is on the loan, not the deed.

If you have questions about a contract, deed, or closing, a Georgia real estate attorney can review the documents and advise you before you sign.