Escrow & TitleIntermediateDelaware Exam

What is a 'release of lien' in Delaware real estate?

AA document releasing a licensee from fiduciary duties

BA recorded document by which a lienholder acknowledges that a lien (mortgage, judgment, mechanic's lien) has been satisfied and removes it from the property's titleCorrect

CThe court's order releasing a contested property from litigation

DSimply a private agreement releasing one co-owner from personal liability for a mortgage shared with other co-owners, which most practitioners would generally accept

Why A recorded document by which a lienholder acknowledges that a lien (mortgage, judgment, mechanic's lien) has been satisfied and removes it from the property's title Is Correct

Answer B: A recorded document by which a lienholder acknowledges that a lien (mortgage, judgment, mechanic's lien) has been satisfied and removes it from the property's title

A release of lien (lien satisfaction or discharge) is a recorded document by the lienholder confirming the debt has been paid and releasing the lien from the property's title, clearing the cloud created by the lien.

Exam Tip: Escrow & Title

Escrow questions test the neutral third-party role and the sequence of closing events. Remember that the escrow agent acts as a dual agent for both buyer and seller and cannot advocate for either side.

Key Escrow & Title Terms in This Question

Lien

A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.

People Also Study

Key Terms to Know

Lien

A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.

Encumbrance

Any claim, lien, charge, or liability attached to real property that affects its value or limits its use.

Abstract of Title

A condensed history of a property's title, summarizing all recorded documents and encumbrances affecting it from the earliest record to the present.

Buyer's Agent

A real estate licensee who represents the buyer's interests in a transaction, owing fiduciary duties to the buyer.

State-Specific Concepts

Mechanic's Lien

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