Escrow & Title
A title company discovers a judgment lien against the seller during a title search. What must happen before closing?
AThe buyer accepts the lien and assumes responsibility for it
BThe lien must be paid, released, or bonded over before the title company will insure title✓ Correct
CThe lien automatically expires at closing
DThe title company ignores judgment liens under $10,000
Explanation
Outstanding judgment liens attach to real property in Colorado. Before a title company will insure clear title to the buyer, any judgment liens against the seller must be paid off at or before closing, released by the judgment creditor, or bonded over through a court proceeding.
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