Origination ActivitiesQuestion 229 of 400
Which pairing correctly matches the charge to its tolerance category?
a.Recording fees — 10 percent tolerance; transfer taxes — zero tolerance
b.Recording fees — zero tolerance; transfer taxes — 10 percent tolerance
c.Both — no tolerance
d.Both — zero tolerance
Explanation
Recording fees fall under the 10 percent cumulative tolerance, while transfer taxes are subject to zero tolerance. Distinguishing these two government-related charges is a common exam point.
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