Escrow & Title
In Louisiana, the seller's obligation at closing includes:
APaying the buyer's title insurance premium
BDelivering a valid, executed Act of Sale that transfers marketable title to the buyer✓ Correct
CPaying the buyer's lender fees
DProviding a survey at the buyer's expense
Explanation
The seller's primary obligation at closing is to deliver a valid Act of Sale that transfers marketable title to the buyer. All liens and encumbrances (other than those the buyer accepts) must be resolved from the sale proceeds.
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Key Terms to Know
Title Insurance
Insurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
EncumbranceAny claim, lien, charge, or liability attached to real property that affects its value or limits its use.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Abstract of TitleA condensed history of a property's title, summarizing all recorded documents and encumbrances affecting it from the earliest record to the present.
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