A real estate exam question shows documentary transfer tax stamps of $1,045 on a recorded deed in a California county that charges only the standard county rate of $1.10 per $1,000. Working backward from the tax stamps, what was the sale price of the property?
Correct Answer
C) $950,000
Step 1: The tax formula is: Tax = (Price ÷ $1,000) × $1.10. Step 2: To find the price, reverse the formula: Price = (Tax ÷ $1.10) × $1,000. Step 3: Price = ($1,045 ÷ $1.10) × $1,000 = 950 × $1,000 = $950,000.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Actual notice means a person has direct, personal knowledge of a fact or interest in real property. This can come from being told, seeing something firsthand, or any form of direct awareness.
Adverse possession is a legal doctrine that allows a person to claim ownership of land by occupying it continuously for a statutory period under specific conditions, without the true owner's permission.
A bargain and sale deed implies that the grantor holds title and possession of the property but does not include warranties against encumbrances or title defects.
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- → A buyer records a deed at the county recorder's office. What is the primary purpose of recording?
- → A buyer drives past the property and sees someone other than the seller living there and maintaining the yard. This observation should put the buyer on what type of notice?
- → In a covered purchase transaction, the borrower receives a final form showing the loan terms, cash to close, and settlement charges shortly before consummation. What form is this?
- → Along with the signed offer, Quinn Brooks delivers a check to demonstrate serious intent to complete the transaction if the offer is accepted. What is this deposit called?
- → On a settlement statement, the buyer's earnest money reduces the remaining cash needed to close. How is that item characterized?
- → On a settlement statement, an item increases the buyer's amount due at closing. How is that item characterized?
- → On the seller's settlement statement, the purchase price of $400,000 appears as what?
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