PSI Virginia Real Estate Practice Exam

What do revenue stamps signify in a real estate transaction?

1. The property taxes paid by the seller

2. The completion of transfer fee payments

3. The age of the property

4. The amount of gross proceeds from a sale

The correct answer is: The completion of transfer fee payments

Revenue stamps are a crucial aspect of real estate transactions, particularly concerning the payment of transfer taxes or fees associated with the conveyance of real property. When a property changes ownership, revenue stamps are often required as evidence that these transfer taxes have been paid. This means that the purchases of these stamps indicate compliance with local or state regulations regarding the transfer of real estate, thereby legitimizing the transaction. In this context, the completion of transfer fee payments aligns directly with the purpose of revenue stamps. They serve as proof that the seller has met their financial obligations regarding these fees, ensuring that the transfer can legally proceed without encumbrances related to unpaid taxes. Other answer options, such as the property taxes paid by the seller, the age of the property, or the amount of gross proceeds from a sale, do not accurately reflect the primary function of revenue stamps in real estate transactions. Property taxes are separate from the transfer fees, the age of the property does not relate to taxation or transfer fees, and gross proceeds from a sale concern the financial aspects of the transaction rather than the legal framework involving the transfer of property ownership.