Escrow & Title
A Connecticut property is subject to a mechanic's lien filed by a contractor who was not paid for renovation work. At closing, this lien must generally be:
ADisclosed but can be ignored by the buyer
BPaid off by the seller or bonded around before or at closing, or the buyer receives an acceptable escrow holdback✓ Correct
CTransferred to the buyer as part of the purchase
DRemoved automatically 30 days after closing
Explanation
A mechanic's lien is a specific lien on the property. Before the buyer can receive clear title, the seller must pay off the lien or obtain a bond (bond around the lien). Without clearing the lien, title insurance will typically exclude it, and the buyer could face loss.
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