Escrow & Title
A Delaware property has an outstanding mechanic's lien filed by a contractor. How does this affect the sale?
AThe lien does not affect the sale if the buyer is unaware of it
BThe lien must be paid off or released before a clear title can be conveyed — typically satisfied from the seller's proceeds at closing✓ Correct
CThe buyer automatically assumes the lien upon purchase
DThe lien expires automatically after 30 days from the closing date
Explanation
A mechanic's lien is a legal claim against property filed by contractors or suppliers who were not paid for work performed. In Delaware, the lien attaches to the title and must be resolved (paid or released) before clear title can pass to the buyer.
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