finance & Closing- ga state 15 questions

The ______ clause is also known as a due-on-sale clause.

Alienation

Which service providers are exempt from GAFLA provisions?

Insurance providers

Why is the recording of a deed so vital?

It protects new owners from former sellers claiming they still own the property.

How's the Georgia intangible tax computed?

It's based on the amount borrowed, and is $1.50 per each $500 or fractional part thereof, with a maximum of $25,000.

Which option must be included on a deed for it to be valid?

Names of grantor/grantee

In Georgia, which of the following closing costs is usually paid by the seller?

Transfer tax

What's the transfer tax on a Georgia home sold for $215,000 with a mortgage loan of $180,000?

$215

Which of the following could be a valid deed?

A written document containing all of the required elements and adhering to all document formatting requirements

According to the Georgia marketable title acts, the statutory limit is 50 years. Marketable title legislation ______

Automatically quiets any title claims after a certain amount of time

In a deed of trust, who is the trustor?

Borrower

Thomas receives his Georgia real estate tax bill on January 15. What is the period of time covered by this tax bill?

The current year from January 1 through December 31

When a borrower fails to cure any default within 120 days of the lender's original notification, the lender may begin the foreclosure process. In Georgia, borrowers may redeem the property ________________.

Up to five das before the scheduled foreclosure dale

In Georgia, how many years do we have to go back to trace the chain perfectly, with no gaps in ownership?

50 Years

Who usually acts as a closing attorney?

An attorney who may or may not be the lender's attorney

Andrea's lender has notified her of its intent to foreclose. Her loan is secured with a security deed. What rights does she have to redeem her property?

Andrea can cure the default and reinstate the loan.

Which of the following is the responsibility of a Georgia closing attorney?

Calculate prorations

In Georgia, real estate taxes are prorated on the basis of what kind of year?

Calendar year (365 days)

Joe Bob is the grantor of a deed, and is in the final stages of transferring a deed to the new owner, Frank. What must Joe Bob do in order to satisfy delivery and acceptance of the deed to Frank?

Deliver the deed to Frank, his agent or attorney, or the title company issuing the title

There are several essential elements to a deed. Which of the following must be included in a deed?

Legal Description

Kathy mistakenly duplicates reporting an asset on her mortgage loan application. Is she in violation of Georgia's Mortgage Fraud Act?

No, because it wasn't an intentional misrepresentation.

In Georgia, lenders use one of two methods to release the security deed when the promissory note is paid in full. One method is to simply note on the original deed that it's being released. What's the second method?

Prepare a Cancellation of Debt Secured by Deed form

The document that describes the loan amount and the terms for repaying and is attached to a security instrument is called the ______.

Promissory note

After closing, the attorney is responsible for ______.

Recording the deed

In Georgia, upon what amount is the transfer tax calculated?

Sales price

In Georgia, the three types of finance instruments that can be used when financing a real estate purchase are the note with mortgage, note with deed of trust, and note with

Security deed

In Georgia, who owns the property on the day of closing?

Seller

Tagger has made the final payment on his loan according to the loan terms. What must the note holder do to acknowledge that the debt has been repaid?

Sign the note, mark it "Paid in Full," and return it to Tagger.

Krista is obtaining a loan to buy a home. Her loan agreement consists of one document called a note and one called a deed of trust. What's the role of the note?

States who owes money to whom, how much, and how it will be repaid

When a borrower has paid off the loan, how is the release handled if the security instrument is a mortgage?

The lender executes and records a satisfaction of mortgage and returns the note to the borrower.

When a mortgage is sold, what happens?

The note is endorsed and the mortgage is assigned.

Roger needed to unload an investment property and paid the appraiser an additional fee for appraising at a value that would allow Roger to come out ahead on the property. Is the appraiser in violation of GRMFA?

Yes, because the appraiser fraudulently received funds in connection with a residential mortgage

If the foreclosure sale doesn't satisfy the debt, ______.

A deficiency judgment against the borrower may be issued

Clara has been called to be an official witness to a deed signing. Who is Clara?

A notary public

In Georgia, who manages the closing meeting and explains and presents documents for signature

Closing Attorney

Which of the following terms describes the actions required to transfer a title by deed?

Delivery and acceptance

GAFLA targets predatory lending by prohibiting which of the following?

Excessive late fees and financing of credit insurance

Which lenders are covered by GAFLA?

Loan brokers, servicers, and purchasers or assignees

Financing for a real estate transaction can use a note with a ______, a note with a deed of trust, or, in Georgia, a note with a security deed.

Mortage

A beneficiary, trustor, and trustee are the parties involved when the finance instrument is a ______.

Note with deed of trust

Which clause is standard in a deed of trust or security deed and affects the foreclosure process that can be used if the borrower defaults?

Power of sale

In Georgia, the three types of finance instruments that can be used when financing a real estate purchase are the note with mortgage, note with deed of trust, and note with ______.

Security deed

Regina has defaulted on the terms of her mortgage, and now her lender has foreclosed. The property was sold at a sheriff's sale three months ago. Regina suddenly learns that she has inherited a great deal of money. She wants her property back. Under a judicial foreclosure, what right might allow her to buy her property from the winner of the foreclosure auction?

Statutory right of redemption

Which parties must be identified on the promissory note?

The borrower and the lender

Which of these features is shared by the mortgage, the deed of trust, and Georgia's security deed?

The borrower is required to maintain the property and pay property taxes and insurance.

Which of the following is a true statement about when a promissory note is sold?

The promissory note is endorsed to the new owner of the loan.