Escrow & Title

A Massachusetts attorney conducting a residential closing reviews the title examination and finds an old open mortgage from 1985 that was never discharged. This is called:

AA superior lien
BA cloud on title✓ Correct
CA prescriptive easement
DA restrictive covenant

Explanation

An old, undischarged mortgage creates a cloud on title — a defect or encumbrance that impairs the property owner's ability to convey marketable title. The Massachusetts Obsolete Mortgage Statute may discharge mortgages over 35 years old under certain conditions.

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