Escrow & Title
In Colorado, a title company that discovers a judgment lien against the seller during a title search will typically:
AIgnore it since it is the seller's personal problem
BIssue the title commitment with the lien as an exception, requiring it to be paid at closing✓ Correct
CRefuse to conduct the closing
DAutomatically pay the judgment from the seller's proceeds without the seller's knowledge
Explanation
When a title company discovers a judgment lien, it will list the lien as an exception in the title commitment, requiring that it be paid off at or before closing in order to issue a clean owner's title insurance policy.
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