Escrow & Title
A Mississippi property's closing is delayed because the title examination reveals an old, unresolved judgment lien against the seller. The seller must:
AProceed with the sale and let the buyer deal with the lien
BPay off or otherwise resolve the judgment lien before the sale can close with clear title✓ Correct
CObtain title insurance to cover the judgment lien
DAsk the court to remove the lien without payment
Explanation
Judgment liens attach to real property and must be cleared before the property can be conveyed with marketable title. The seller must pay off the judgment, obtain a court order releasing it, or negotiate a release with the judgment creditor.
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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.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
Math Concepts
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