Escrow & Title
A title search reveals an old, unsatisfied mortgage from 20 years ago. The buyer should:
AProceed to closing — old mortgages are automatically released after 10 years
BRequire the seller to obtain a release or satisfaction of the mortgage before closing✓ Correct
CPurchase extra title insurance to cover the old lien
DFile a quiet title action after closing
Explanation
An unsatisfied mortgage is a cloud on title. The buyer should require the seller to obtain and record a proper release or satisfaction of the mortgage prior to or at closing. The title cannot be conveyed clear of this lien without a release.
Related Arkansas Escrow & Title Questions
- In an escrow closing, what triggers the disbursement of funds and recording of the deed?
- Delivery and acceptance of a deed is significant because:
- A cloud on title is best described as:
- The chain of title refers to:
- A quitclaim deed is most commonly used for:
- A deed must contain which of the following to be valid in Arkansas?
- Constructive notice means:
- Lis pendens means:
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