Escrow & Title
A Kentucky title company that discovers an undisclosed IRS tax lien against the seller during a title search should:
AIgnore it if less than $5,000
BRequire the lien to be paid off before or at closing✓ Correct
CTransfer the lien to the buyer with their consent
DReport it to KREC for resolution
Explanation
An IRS tax lien is a general lien that attaches to all of the taxpayer's property. It must be released or paid off before clear title can be conveyed to the buyer.
Related Kentucky Escrow & Title Questions
- In Kentucky, deeds and mortgages are recorded at the:
- An abstract of title is:
- A Kentucky closing agent receives the payoff statement for the seller's mortgage the day before closing. The payoff amount is $5,000 more than expected. The closing agent should:
- In Kentucky, the buyer's closing costs typically include:
- An owner's title insurance policy in Kentucky is usually paid:
- A title opinion in Kentucky is issued by:
- Title insurance in Kentucky protects against:
- A deed must be delivered and accepted to be considered legally effective because:
Practice More Kentucky Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Kentucky Quiz →