Property Ownership
A seller in Indiana who warrants that a property is free and clear of all liens and then sells a property with an undisclosed mortgage lien may be liable for:
AOnly the amount of the lien
BBreach of the warranty covenant in the deed and potentially fraud✓ Correct
CNothing — all liens are the buyer's responsibility after closing
DOnly if the lien is foreclosed upon
Explanation
If a general warranty deed warrants clear title and a prior lien exists that the seller knew about, the seller breaches the warranty and may be sued for the resulting damages to the buyer's title.
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