One Disadvantage of Refinancing a Property Instead of Selling the Property

question 3

True/False

One disadvantage of refinancing a property instead of selling the property is that taxes have to be paid on funds received by additional borrowing,but no taxes would have to be paid if the property is sold.

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Definitions:

Legal Implications

The potential legal consequences or effects arising from certain actions or decisions.

Mishap

An unforeseen accident or minor mistake resulting in damage or inconvenience.

Life Insurance Policy

A contract between an individual and an insurance company, where the insurer pays a designated beneficiary a sum of money upon the death of the insured person.

Beneficiary

A person or entity entitled to receive benefits from a will, trust, insurance policy, or other legal agreements.