Escrow & Title
A title search reveals a mechanic's lien filed by a contractor who was not paid for work on the property. At closing, this lien should be:
AIgnored because it becomes the buyer's responsibility after closing
BSatisfied and released before or at closing to convey clear title✓ Correct
CTransferred to the buyer's title insurance policy without resolution
DReported to the Alaska Real Estate Commission
Explanation
A mechanic's lien is an encumbrance on the property that must be resolved before title can be conveyed free and clear. Typically, the lien is paid from the seller's proceeds at closing, and a release is recorded to clear the title.
Related Alaska Escrow & Title Questions
- In Alaska, property sold at a tax deed sale is typically transferred via a:
- Which type of title insurance policy protects the lender's interest in an Alaska mortgage transaction?
- A special assessment lien in Alaska is levied by a municipality to:
- A 'cloud on title' refers to:
- A title insurance policy that protects the lender's interest is called a:
- Actual notice in Alaska real estate law means:
- Proration of property taxes at closing in Alaska means:
- An Alaska real estate closing in which the buyer and seller are in different locations is most commonly facilitated by:
Practice More Alaska Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Alaska Quiz →