Contracts
A Kentucky purchase contract requires the seller to provide a clean title at closing. If the title search reveals a mechanic's lien from a recent renovation, the seller must:
ADisclose the lien but the buyer must assume it
BPay off or bond around the lien before or at closing✓ Correct
CCancel the contract since liens are seller's problem after closing
DNegotiate with the buyer to reduce the purchase price
Explanation
A mechanic's lien is an encumbrance on the property that must be resolved before clear title can be conveyed. The seller must pay off the lien or post a bond to remove it from the title. The title company will typically require lien discharge before closing.
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