Finance
When does Georgia's intangible recording tax NOT apply to a Security Deed?
AA. When the loan is for a commercial property
BB. When the loan is a renewal, extension, or modification of an existing Security Deed on the same property for the same or lesser amount✓ Correct
CC. When the property value exceeds $1 million
DD. When the lender is a national bank
Explanation
Georgia's intangible recording tax does not apply to the renewal, modification, or extension of an existing Security Deed on the same real estate for the same or lesser amount — provided tax was previously paid on the original instrument.
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Key Terms to Know
Deed
A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Deed of TrustA security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
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