Escrow & Title
A Mississippi property is being sold with an existing deed of trust that the buyer will not assume. At closing, the settlement agent should confirm that:
AThe buyer agrees to make the seller's mortgage payments
BThe existing deed of trust lien will be paid off and released from the title as part of the closing✓ Correct
CThe existing lien can be paid off at any future date
DTitle insurance will cover the existing lien
Explanation
Unless the buyer is assuming the existing mortgage, the existing deed of trust must be paid in full at closing, and the lender must provide (and record) a release of lien before or simultaneously with the buyer's new deed of trust being recorded. Clear title requires elimination of the prior lien.
Related Mississippi Escrow & Title Questions
- In Mississippi, a 'special warranty deed' differs from a 'general warranty deed' in that the special warranty deed:
- A Mississippi buyer pays for a lender's title insurance policy. The lender's policy protects the lender for the term of the policy, which typically ends when:
- A Mississippi title search reveals a 'lis pendens' recorded against the property. A lis pendens means:
- A Mississippi property owner files for bankruptcy. An automatic stay is issued. This means:
- A Mississippi buyer purchases property and later discovers an unrecorded easement used by a neighboring farmer for decades. The buyer may be bound by this easement if:
- A Mississippi 'lot book' maintained by a title company contains:
- In a Mississippi real estate closing, the 'settlement agent' typically:
- A Mississippi real estate transaction involves a 'short sale.' In a short sale, the lender agrees to accept:
Practice More Mississippi Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Mississippi Quiz →