Finance and Closing missed questions
A due-on-sale clause is also known as a(n) ______ clause.
Alienation
Craig's loan is secured by a mortgage. Who holds legal title when this security instrument is used?
Craig - The borrower holds legal title to the property that secures the loan when a mortgage instrument is used.
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 - Joe Bob has to deliver the deed to Frank, his agent or attorney, or the title company issuing the title and acceptance is presumed.
What's true about the right of redemption in Georgia?
Georgia law doesn't provide a right of redemption after foreclosure except in cases of tax sales. - Georgia law doesn't provide a right of redemption after foreclosure except in cases of tax sales. Georgia is a non-judicial foreclosure state.
Gina is buying a condo in Tybee Island. Unless otherwise negotiated, which of the following closing costs will she pay?
Intangible tax - The buyer is responsible for payment of the intangible tax unless otherwise negotiated in the purchase contract.
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. - The intangible tax is based on the loan amount and is $1.50 per each $500 or fractional part thereof with a maximum of $25,000.
There are several essential elements to a deed. Which of the following must be included in a deed?
Legal description
Who holds the promissory note while it's being repaid?
The obligee - The lender is the obligee who holds the note while it's being repaid. If the note is transferred, the new owner becomes the obligee and note holder.
Jacob lost his job in an economic slump and is behind on his mortgage. Georgia is a non-judicial foreclosure state. Which section of his security deed gives his lender to right to sell the property if he defaults?
Transfer of Rights in Property - The Transfer of Rights in Property section gives the lender power of sale, meaning the lender can sell the property without judicial proceedings if the borrower defaults.
When is a promissory note most often used in Georgia?
When an owner finances the sale of their property - In Georgia, a promissory note is most often used when an owner finances the sale of their property and records and holds the note. The lender in this case is the owner.
