Which of the Following Is Recommended If You Loan Money

question 3

Multiple Choice

Which of the following is recommended if you loan money to a friend or relative?

• A) Do it in a business-like fashion.
• B) Charge interest if the loan is not to be quickly repaid.
• C) Be sure both parties understand it is a loan,not a gift.
• D) Lend only money you can afford to give away.
• E) All of the above

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Definitions:

Notice-Race State

A jurisdiction where the first party to record a deed or interest in property with the public office has priority over others, regardless of actual notice.

Unrecorded Deed

A deed that has been executed and delivered but has not been filed with the appropriate county recorder’s office, thus not part of the public record.

Subsequent Purchaser

An individual or entity that acquires ownership of property or goods after they have been initially sold by the original owner.

Notary Public

An authorized official who can attest to the authenticity of signatures on documents, among other duties, to help prevent fraud.