Final Answer:
1. Debit to the buyer and a credit to the lender because The fee for notarizing the warranty deed is debited to the buyer and credited to the lender to accurately reflect the financial responsibility and transaction in real estate accounting.
Step-by-step explanation:
When a fee is incurred for notarizing a warranty deed, it is typically a cost borne by the buyer, as it is related to the transfer of ownership. In accounting terms, this expense is recorded as a debit to the buyer because it represents an outgoing payment.
On the other side, a credit is given to the lender to account for the financial transaction associated with the property transfer. This aligns with the standard accounting principles in real estate transactions, where costs and credits are allocated to the parties involved based on their roles and responsibilities.
In this case, the buyer bears the cost, and the lender, being a key participant in the transaction, receives the corresponding credit. It's essential to accurately record these financial transactions to maintain transparency and adhere to accounting standards in real estate dealings.
correct option is 1. Debit to the buyer and a credit to the lender