Escrow & TitleIntermediateAlaska Exam

An Alaska title company discovers a judgment lien against the seller. At closing, this lien must:

ABe disclosed to the buyer but does not need to be paid, in general
BBe paid from seller proceeds so the buyer receives clear titleCorrect
CTransfer to the buyer as part of the property
DBe insured separately by the buyer

Why Be paid from seller proceeds so the buyer receives clear title Is Correct

Answer B: Be paid from seller proceeds so the buyer receives clear title

A judgment lien against the seller must be paid and released from the property at closing. The title company or closing agent will ensure the lien is satisfied from the seller's proceeds so the buyer receives clear, marketable title as required by the purchase agreement.

Exam Tip: Escrow & Title

Escrow questions test the neutral third-party role and the sequence of closing events. Remember that the escrow agent acts as a dual agent for both buyer and seller and cannot advocate for either side.

Key Escrow & Title Terms in This Question

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