Georgia real estate law is codified mostly in the Official Code of Georgia Annotated and sits on top of a traditional buyer-beware framework: sellers face limited disclosure duties, every closing must be handled by a licensed attorney, security deposits are capped at two months’ rent with strict return rules, and lenders can foreclose without filing a lawsuit. The rules below cover what buyers, sellers, landlords, tenants, and borrowers run into most often.
Contracts to Buy or Sell Must Be in Writing
Georgia’s statute of frauds requires any contract for the sale of land or an interest in land to be in writing and signed by the party being held to it.1FindLaw. Georgia Code Title 13 Contracts 13-5-30 Verbal purchase agreements, verbal options to buy, and handshake deals to transfer property are not enforceable, no matter how many witnesses were there. If it isn’t written and signed, a Georgia court will not make either side perform.
Residential leases are different. A tenant who moves in and pays rent without a signed lease becomes a tenant at will. The landlord must give 60 days’ notice to end that arrangement or raise the rent, and the tenant must give 30 days’ notice to leave. A written lease is still the better practice because verbal terms produce fights about what was actually agreed.
An Attorney Must Handle Every Closing
Georgia is one of a few states where a licensed attorney must conduct every real estate closing. O.C.G.A. § 15-19-50 defines the practice of law to include preparing legal instruments, transferring property interests, and giving opinions on title validity.2Justia. Georgia Code 15-19-50 – Practice of Law Defined A closing involves all three. A title company or real estate agent running one alone would be practicing law without a license.
The closing attorney typically runs a title search for liens, judgments, and other claims, certifies the title to the buyer and lender, oversees the signing of the deed and the deed to secure debt (Georgia’s version of a mortgage), and records the documents with the county. If the attorney misses a lien or drafts a bad deed, the professional liability sits with them.
Referral Fees Are a Federal Issue
The federal Real Estate Settlement Procedures Act prohibits anyone in a real estate transaction from paying or accepting a referral fee, kickback, or anything of value for steering business to a particular settlement service provider, including attorneys, title companies, inspectors, and insurers.3Office of the Law Revision Counsel. 12 USC 2607 – Prohibition Against Kickbacks and Unearned Fees Payments for services actually performed are allowed, and affiliated business arrangements can be used with full written disclosure. Violations can bring fines up to $10,000 and up to one year in prison.
What Sellers Have to Disclose
Georgia still follows caveat emptor. The buyer carries the primary burden of inspecting before closing, and the state does not require sellers to complete a standardized disclosure form the way most states do. The doctrine has one important limit: a seller who knows about a hidden defect and stays silent can face a fraud or misrepresentation claim after closing.
The line is between obvious and hidden. A buyer who could see cracked walls on a walkthrough cannot blame the seller afterward. A seller who knows about a failing foundation behind finished walls, chronic flooding in a crawl space, or a septic system that backs up every spring must disclose it. The problem has to be something a reasonable buyer would not catch during a normal inspection.
Georgia law specifically shields sellers and agents from liability for not volunteering that a previous occupant had an infectious disease or that a death occurred on the property, as long as they answer honestly if asked directly.4Justia. Georgia Code 44-1-16 – Failure to Disclose in Real Estate Transactions
Lead Paint on Pre-1978 Homes
Federal law overrides Georgia’s silence on one point. For any home built before 1978, the seller must give the buyer the EPA pamphlet “Protect Your Family from Lead in Your Home,” disclose any known lead-based paint hazards, and share available test reports.5United States Environmental Protection Agency. Lead-Based Paint Disclosure Rule Fact Sheet The buyer also gets 10 days to inspect for lead before the sale is final. Sellers who skip the disclosure can be sued for triple damages and face civil and criminal penalties. The rule does not require testing or removal, only disclosure of what the seller already knows.
Transfer Tax and Intangibles Tax
Georgia charges a real estate transfer tax on every deed when the sale price exceeds $100. The rate is $1 per $1,000 of sale price.6Justia. Georgia Code 48-6-1 – Transfer Tax Rate On a $350,000 home, that is about $350. Custom is for the seller to pay it, but the point is negotiable and sometimes split.
Georgia also charges an intangibles tax on new mortgage debt, which the buyer usually pays. The rate is $1.50 per $500 of the loan amount, or roughly $3 per $1,000. A $280,000 mortgage carries about $840 in intangibles tax. Add attorney fees, title insurance, and county recording fees, and the full closing cost picture climbs quickly.
Homestead Exemption on Your Primary Residence
The standard Georgia homestead exemption reduces the taxable value of your primary residence by $2,000 off the 40% assessed value for county and most school taxes.7Georgia Department of Revenue. Property Tax Homestead Exemptions Many counties and cities add larger local exemptions on top of the state one, often with much bigger reductions for seniors, disabled veterans, and surviving spouses. Local exemptions vary widely, so a call to your county tax assessor is worth making.
You apply through the county tax assessor. The traditional deadline is April 1 of the year you want the exemption to start, though Georgia now allows applications through the end of the 45-day window to appeal your assessment notice. One application covers you as long as you keep living in the home and nothing material changes.
Security Deposits: Limits, Escrow, and Return
O.C.G.A. §§ 44-7-30 through 44-7-37 govern how landlords collect, hold, and return deposits. For residential leases entered into or renewed on or after July 1, 2024, a landlord cannot charge a security deposit greater than two months’ rent.8Justia. Georgia Code 44-7-30.1 – Limitation on Security Deposit
Escrow Account and Move-In Inspection
Deposits must sit in a separate escrow account at a bank or lending institution regulated by state or federal authorities, used only for security deposits, and the landlord has to tell the tenant in writing where the account is held.9FindLaw. Georgia Code 44-7-31 – Escrow Account Requirements O.C.G.A. § 44-7-32 exempts landlords who own ten or fewer rental units and do not use a management company from the separate-escrow requirement, though they still have to follow the other deposit rules.
Before accepting the deposit, the landlord must give the tenant a written list of existing damage. The tenant has the right to inspect and check the list for accuracy. Both parties sign, and that signed document becomes conclusive evidence of the property’s condition at move-in.10FindLaw. Georgia Code 44-7-33 – Inspection of Premises A tenant who disagrees with anything on the list has to write out the specific objections and sign that statement instead. Both sides regret skipping this step later.
The 30-Day Return Rule
Once the lease ends and the landlord has possession again, the landlord has 30 days to return the full deposit or send a written statement showing exactly what was withheld and why. Any deductions for damage must reference the move-in list and include the cost of each repair.11FindLaw. Georgia Code 44-7-34 – Return of Security Deposit Normal wear and tear cannot be deducted. Unpaid rent, late fees, unpaid utilities, pet fees, and actual damages from a tenant’s breach of the lease can be.
Wrongful withholding is expensive. A landlord who fails to return money that should have gone back owes three times the amount improperly withheld, plus the tenant’s reasonable attorney fees.12FindLaw. Georgia Code 44-7-35 – Landlord Liability for Wrongful Withholding The only way out of treble damages is proof that the error was in good faith despite reasonable procedures meant to prevent it.
Landlord Repair Duties and Tenant Options
O.C.G.A. § 44-7-13 requires landlords to keep rental property in good repair, and any lease clause that tries to shift this duty to the tenant or waive it is unenforceable.13Justia. Georgia Code 44-7-13 – Landlord Duties as to Repairs and Improvements This is one of the few corners of Georgia law that clearly favors tenants.
When a landlord ignores a repair request, Georgia tenants have fewer tools than tenants in many states. Some try “repair and deduct,” paying for the fix and subtracting it from the next rent payment. Georgia Legal Aid treats this as a possible move, but no Georgia statute explicitly authorizes it, so a landlord who disputes the deduction can file for eviction over the shortfall. Getting the landlord’s written agreement on the cost before starting any work cuts the risk. Filing a complaint with local code enforcement or taking the claim to magistrate court are safer paths.
How Eviction Works in Georgia
Landlords cannot change the locks, shut off utilities, or otherwise force a tenant out on their own. Every eviction goes through court. For nonpayment of rent, the landlord first has to give a written demand to pay or vacate within three business days.14Justia. Georgia Code 44-7-50 – Demand for Possession If the tenant does neither in that window, the landlord files a dispossessory affidavit in the magistrate or superior court for the county where the property sits.
After filing, the tenant is served and generally has seven days to answer. A contested case goes to a hearing. If the tenant doesn’t respond, the court can enter a default judgment. Even after judgment, only a sheriff or marshal can physically remove the tenant. From the first demand to actual removal, the process usually takes several weeks at minimum.
Non-Judicial Foreclosure
Georgia is a non-judicial foreclosure state. Lenders do not file a lawsuit; they rely on the power-of-sale clause in the deed to secure debt the borrower signed at closing. That makes the process faster and cheaper for lenders, which is exactly why borrowers need to know the timeline.
Notice and the Sale Date
The lender must send the borrower written notice at least 30 days before the scheduled sale date. That notice has to include the name, address, and phone number of the person or entity with full authority to discuss modifying the loan, though the statute does not require the lender to actually agree to anything.15Justia. Georgia Code 44-14-162.2 – Notice of Foreclosure Sale to Debtor The sale also has to be advertised in the manner of sheriff’s sales in the county where the property sits.16Justia. Georgia Code 44-14-162 – Sales Made on Foreclosure Under Power of Sale
Foreclosure auctions happen on the first Tuesday of the month, at the county courthouse, between 10:00 a.m. and 4:00 p.m. If that Tuesday is New Year’s Day or Independence Day, the sale moves to the following Wednesday.17Justia. Georgia Code 9-13-161 – Where and When Sales Under Execution Missing any of the notice or timing requirements can void the sale.
Deficiency Judgments and Confirmation
If the property sells for less than the total debt, the lender can chase the borrower for the difference, but only by following a strict procedure. Within 30 days of the sale, the lender has to report the sale to the superior court in the county and ask the court to confirm it. The court will confirm only if the property sold for its true market value and the sale was properly advertised and conducted.18Justia. Georgia Code 44-14-161 – Sales Made on Foreclosure, Deficiency Judgments The borrower must receive notice of the confirmation hearing at least five days in advance. Miss the 30-day window or fail on market value, and the lender loses the right to collect the deficiency. For borrowers facing foreclosure, this is one of the most useful protections in Georgia law.
Federal Foreclosure Protections
Two federal rules sit on top of the Georgia process. Mortgage servicers cannot start foreclosure until the borrower is more than 120 days behind on payments, which is meant to leave room for loan modifications or repayment plans.19eCFR. 12 CFR 1024.41 – Loss Mitigation Procedures
Active-duty service members get additional protection under the Servicemembers Civil Relief Act. A foreclosure sale during military service, or within one year after it ends, is not valid without a court order.20Office of the Law Revision Counsel. 50 USC 3953 – Mortgages and Trust Deeds Knowingly foreclosing in violation of the SCRA is a federal misdemeanor carrying fines and up to one year in prison.
Georgia does not give a general right of redemption after a mortgage foreclosure sale. Once the auction is done and the deed is transferred, the former owner has no statutory right to buy the property back. A redemption right does exist for tax sales, usually for 12 months, but tax sales are a separate process.
Fair Housing Rules
The federal Fair Housing Act prohibits discrimination in any housing transaction based on race, color, religion, sex, national origin, familial status, or disability, and the protections cover sales, rentals, mortgage lending, appraisals, and insurance.21Office of the Law Revision Counsel. 42 USC 3604 – Discrimination in Sale or Rental of Housing Georgia’s own fair housing law at O.C.G.A. §§ 8-3-200 through 8-3-223 mirrors the federal protections.
Violations often look routine to the person committing them. Refusing to rent to families with children, demanding a bigger deposit from tenants of a particular national origin, or steering buyers toward specific neighborhoods based on race all qualify. Rules that disproportionately affect a protected group can produce liability even without discriminatory intent. A first violation in an administrative proceeding can bring penalties above $23,000, and federal court cases carry no cap on compensatory or punitive damages.