Escrow & TitleIntermediateNorth Carolina Exam

In North Carolina, the excise tax on a deed is typically paid by:

AThe buyer

BThe sellerCorrect

CSplit equally between buyer and seller

DThe real estate broker

Why The seller Is Correct

Answer B: The seller

In North Carolina, the seller typically pays the deed excise tax (revenue stamps), though it is negotiable between the parties.

Exam Tip: Escrow & Title

Escrow questions test the neutral third-party role and the sequence of closing events. Remember that the escrow agent acts as a dual agent for both buyer and seller and cannot advocate for either side.

Key Escrow & Title Terms in This Question

Deed

A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).

People Also Study

Key Terms to Know

Deed

A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).

Deed of Trust

A security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.

Easement

A non-possessory right to use another person's land for a specific purpose.

Encumbrance

Any claim, lien, charge, or liability attached to real property that affects its value or limits its use.