Escrow & Title
A Connecticut buyer's attorney discovers an old, unreleased mortgage lien from 1972 during the title search. The seller was unaware of it. The best way to resolve this cloud on title is:
AProceed with closing and let the buyer deal with it later
BFile a lis pendens
CObtain a release of the old mortgage from the lender or its successor, or bring a quiet title action✓ Correct
DPurchase title insurance and ignore the lien
Explanation
A cloud on title must be cleared before closing. The seller should obtain a formal release (satisfaction of mortgage) from the lender or its successor.
People Also Study
Related Connecticut Questions
- A Connecticut buyer is purchasing an older industrial property. Prior to purchase, the buyer's attorney recommends an 'environmental lien search' in addition to the standard title search. The purpose is to:Environmental
- A Connecticut purchase contract is subject to a 'clean title contingency.' At closing, the title search reveals an old mortgage from 1988 that was never formally released. The seller must:Contracts
- A Connecticut title insurance company discovers after closing that a property has an access easement that was not shown in the title search. The owner's policy will:Escrow & Title
- A Connecticut purchase agreement includes a mortgage contingency. If the buyer cannot obtain financing, the buyer may:Contracts
- In Connecticut, which instrument is used to release a paid-off mortgage from the property's title?Escrow & Title
- A Connecticut title company discovers a 'cloud on title.' This means:Escrow & Title
- A Connecticut title insurance company discovers a mechanic's lien filed after the date of the owner's policy. The policy will:Escrow & Title
- A Connecticut property is located in a Special Flood Hazard Area (SFHA). The mortgage lender will most likely require the buyer to:Environmental
Key Terms to Know
Title Insurance
Insurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Closing CostsFees and expenses paid by the buyer and/or seller at the closing of a real estate transaction, in addition to the property's purchase price.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Study This Topic
Practice More Connecticut Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Connecticut Quiz →