Maria is purchasing a home in Fairfax County, Virginia. At closing, she is informed that she must pay a recordation tax on the deed of trust used to secure her mortgage loan. Which party in the deed of trust transaction is responsible for paying this recordation tax in Virginia?
Correct Answer
D) The trustor (borrower), because the borrower executes and records the deed of trust
In Virginia, the recordation tax on a deed of trust is paid by the trustor, which is the borrower (in this case, Maria). Under Virginia Code § 58.1-803, the party executing and recording the deed of trust — the borrower — is responsible for the recordation tax on that instrument. This is separate from the grantor's tax on the deed of conveyance, which is paid by the seller.
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Related Concepts
Usury is the practice of charging an interest rate that exceeds the maximum rate permitted by state law. Usury laws protect borrowers from excessive interest charges on loans.
A VA loan is a mortgage guaranteed by the Department of Veterans Affairs available to eligible veterans, active-duty service members, and surviving spouses. It offers no down payment and no private mortgage insurance requirements.
An adjustable-rate mortgage (ARM) has an interest rate that changes periodically based on market conditions, typically after an initial fixed-rate period. The rate adjustment is tied to a financial index plus a margin.
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