Virginia imposes various transfer taxes and recordation fees at real estate closings. Which of the following is NOT a characteristic of Virginia's grantor's tax under Virginia Code § 58.1-801?
Correct Answer
D) It is paid by the buyer as a condition of receiving the deed
The grantor's tax under Virginia Code § 58.1-801 is NOT paid by the buyer. It is paid by the seller (grantor), who is conveying the property. The buyer may owe other closing costs, such as recordation taxes on the deed of trust, but the grantor's tax is specifically the seller's obligation. Stating that the buyer pays it is incorrect and is the characteristic that does NOT apply.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Predatory lending refers to unfair, deceptive, or abusive lending practices that impose unjustified terms on borrowers, often targeting vulnerable populations. It includes practices like excessive fees, inflated appraisals, and unnecessary refinancing.
RESPA is a federal law that requires lenders to provide borrowers with information about settlement costs, prohibits kickbacks and referral fees, and limits escrow account deposits. It applies to federally related mortgage loans.
The secondary mortgage market is where existing mortgage loans are bought and sold between lenders, investors, and government-sponsored enterprises (GSEs) like Fannie Mae, Freddie Mac, and Ginnie Mae.
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