Question

The state documentary stamp tax on the promissory note and intangible tax on a new mortgage is normally paid by the _________.

a) Lender
b) Borrower
c) Real estate agent
d) State government

Answer 1

The state documentary stamp tax on the promissory note and intangible tax on a new mortgage are typically paid by the borrower as part of the closing costs of obtaining a mortgage.

Step-by-step explanation:

The state documentary stamp tax on the promissory note and intangible tax on a new mortgage are costs that are generally the responsibility of the borrower. These taxes are a part of closing costs when obtaining a mortgage for purchasing property. The documentary stamp tax is levied on the promissory note and is calculated based on the loan amount. The intangible tax is charged on the mortgage and is also based on the loan amount. Both of these taxes are state-specific and the rates can vary from state to state.