Escrow & Title
When a Kentucky property is purchased for cash with no mortgage, which document is NOT required at closing?
ADeed
BPromissory note and mortgage✓ Correct
CSettlement statement
DTransfer tax documentation
Explanation
In an all-cash transaction, there is no loan, so neither a promissory note nor a mortgage is required. The deed transfers ownership, the settlement statement documents the transaction, and transfer tax documents are required by the county.
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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).
Transfer TaxA tax imposed by state or local governments when real property ownership is transferred, typically based on the sale price.
Promissory NoteA written promise to repay a loan under specified terms — the borrower's personal financial obligation in a real estate transaction.
Chain of TitleThe sequential record of all transfers of ownership for a piece of property from the original patent holder to the present owner.
State-Specific Concepts
Transfer Tax
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