What instrument needs to be paid for their recording before the instruments transferring land interests are recorded?

Prepare for the Michigan State Title Insurance Exam. Enhance your study with flashcards and multiple-choice questions. Understand questions with detailed hints and explanations. Ace your exam!

The transfer tax and recording fees are necessary expenses that must be settled prior to recording documents that transfer land interests, like a deed. When a property transaction occurs, the government typically imposes taxes and fees related to the recording of that property deed in the public records. This process ensures that the transfer of ownership is officially recognized and can be validated against claims or encumbrances on the property.

The rationale behind requiring these payments before the recording of the transfer instruments is to facilitate the administrative processing of property records, ensuring that all necessary financial obligations associated with the transfer are met. This helps maintain the integrity of the land records system and ensures that the interests in the property are properly documented.

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