Escrow & Title
A Louisiana title company discovers a judgment lien on a property prior to closing. The most likely resolution is:
AThe buyer accepts the lien as part of the purchase
BThe seller pays off the judgment at or before closing from the sale proceeds✓ Correct
CThe title company ignores liens under a certain amount
DThe buyer's lender absorbs the lien into the mortgage
Explanation
When a judgment lien is found during a title search, it must be resolved before closing. Typically, the seller pays off the judgment from the sale proceeds, and the lien is released in the parish records.
Related Louisiana Escrow & Title Questions
- A Louisiana title company discovers that a property has a recorded servitude of view that prevents construction of a fence above a certain height. This servitude would be found in:
- An owner's title insurance policy in Louisiana is typically paid for by:
- In Louisiana, when must a notice of lis pendens be filed to provide constructive notice of a pending lawsuit?
- Title insurance in Louisiana protects against:
- RESPA requires that buyers receive a Loan Estimate within how many business days of submitting a loan application?
- Which document in Louisiana certifies that the property has no outstanding liens or encumbrances before the act of sale?
- In Louisiana, the closing agent's responsibility for handling funds during a real estate closing is governed by:
- In Louisiana, a 'vendor's lien' or 'seller's lien' is:
Practice More Louisiana Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Louisiana Quiz →